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Embarking on the adventure of purchasing a new vehicle often begins with the exciting and crucial step of taking a test drive. The Test Drive Agreement, a formal document, plays a pivotal role in this process, outlining the terms and conditions between the dealership and the customer. This agreement meticulously records essential details such as the dealership's name, the salesperson involved, and the customer's information, including name, address, and contact numbers. Furthermore, it specifies the vehicle's identification information like year, make, model, and VIN. The core of the Test Drive Agreement lies in ensuring the customer has a valid driver's license and adequate insurance coverage, setting boundaries for how far and how long the vehicle can be driven, and detailing the protocols for handling any incidents such as damages or accidents during the test drive period. Additionally, it encompasses the responsibilities of the customer regarding the vehicle's care and the legal stipulations to safeguard the dealership's interests, including indemnification clauses. By signing this agreement, customers acknowledge their obligations and the temporary custodianship of the vehicle, ensuring a clear understanding and smooth test-driving experience.

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TEST DRIVE AGREEMENT

Dealership Name:

 

 

 

 

 

 

 

 

 

 

Salesperson:

 

Customer Name(s):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Street Address:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Telephone:

 

 

 

 

 

 

 

 

Work Telephone:

 

Driver’s License#:

 

 

 

 

 

Issuing State:

 

 

 

 

Expiration Date:

 

Insurance Company:

 

 

 

 

Agent:

 

 

 

 

 

 

 

Telephone:

 

Vehicle Year:

 

 

Make:

 

Model:

 

 

VIN:

 

I have requested that the Dealership permit me to test drive the above-described vehicle. I understand that the Dealership is permitting me to test drive the vehicle subject to the following terms and conditions:

1.I have a valid driver’s license to operate a motor vehicle in this state and I presently have in effect collision and liability insurance that meets or exceeds the minimum state requirements and applies to the vehicle during the time that it is in my possession or under my control.

2.I cannot drive the vehicle more than ________ miles and must return the vehicle to the Dealership by ________ a.m./p.m., or earlier if demanded by the Dealership, in the same condition as I received it. I cannot remove the vehicle from this state or use the vehicle negligently or contrary to law. I will not permit any other person to operate the vehicle, other than those listed in the Comments below.

3.I must immediately report any damage, accident, theft or vandalism involving the vehicle to the police, the Dealership and my insurance company and deliver to the Dealership all notices, pleadings and documents regarding any claim, suit or proceeding related to my use, possession or control of the vehicle. I must also report to the Dealership and pay any parking or other traffic violation fines and penalties arising out of my use, possession or control of the vehicle.

4.I have personally inspected the vehicle and found it free from any visible damage and/or defects, except as otherwise noted in the comments below. I must pay for any loss or damage to the vehicle that occurs while the vehicle is in my possession or control, plus the Dealership’s related expenses. In addition, I agree to defend, indemnify and hold harmless the Dealership from and against any and all losses, liabilities, damages, injuries, claims, demands, costs and expenses arising out of my use, possession or control of the vehicle and any breach of my responsibilities as set forth in this Agreement.

5.If I am in breach of this Agreement or fail to return the vehicle to the Dealership as required by this Agreement, I will be required to pay all expenses incurred by the Dealership to have the vehicle returned and the Dealership, or any of its agents or employees, may peacefully retake possession of the vehicle. The Dealership shall not be liable for loss of or damage to any property that I may have left in the vehicle, either before or after its return to the Dealership.

COMMENTS:

DATE OUT:

 

TIME OUT:

 

a.m./p.m. ODOMETER READING OUT:

By signing below, I acknowledge that the vehicle is the property of the Dealership and this Agreement is solely for the purpose of allowing me to use the vehicle as permitted by the terms and conditions stated herein.

Customer

Date

Authorized Dealership Representative

Date

 

 

 

 

 

 

 

For Office Use Only:

 

 

 

 

 

Checked In By:

 

 

On:

 

At: ______________ a.m./p.m.

Odometer Reading:

 

Comments:

Document Attributes

Fact Description
1. Insurance Requirement Customers must have collision and liability insurance that meets or exceeds state requirements to test drive a vehicle.
2. Mileage and Return Time There are restrictions on how far and how long a customer can take the vehicle, which must be adhered to, including an exact return time.
3. Reporting of Incidents Customers are required to immediately report any damage, accidents, theft, or vandalism involving the vehicle to the police, the dealership, and their insurance company.
4. Responsibility for Damages Customers must pay for any loss or damage to the vehicle that occurs while it is in their possession, along with any related dealership expenses.
5. Breach of Agreement If the customer breaches the agreement or fails to return the vehicle as required, they must cover all expenses incurred by the dealership to retrieve the vehicle. In addition, the dealership may reclaim possession of the vehicle peacefully.

How to Fill Out Test Drive

Once an individual decides to take a vehicle for a test drive, it's necessary to fill out a Test Drive Agreement form. This process not only formalizes the individual's intent but also ensures that both the potential buyer and the dealership are protected under specific terms and conditions throughout the test drive period. The form comprises sections that require personal, vehicle, and insurance details, alongside acknowledgments of the terms and conditions of the test drive. Following the steps below will guide you through the completion of this form accurately.

  1. Enter the Dealership Name at the top of the form.
  2. Provide the name of the Salesperson assisting with the test drive.
  3. Fill in Customer Name(s) with the full legal name(s) of the individual(s) taking the test drive.
  4. Input your Street Address, providing both the city and state to ensure clarity.
  5. Enter your Home Telephone and Work Telephone numbers for reliable contact.
  6. Fill in your Driver’s License#, Issuing State, and Expiration Date, which are crucial for verification purposes.
  7. Provide details of your Insurance Company, including the name of the Agent and their Telephone number, to confirm the existence of applicable coverage.
  8. List the Vehicle Year, Make, Model, and VIN to precisely identify the vehicle being tested.
  9. Read carefully and acknowledge your understanding of the terms and conditions by signing at the bottom of the section provided.
  10. In the COMMENTS section, note any visible damage or defects on the vehicle or any additional authorized drivers not listed previously.
  11. Fill in the DATE OUT and TIME OUT fields to document when the test drive begins.
  12. Record the starting ODOMETER READING OUT to track any mileage used during the test drive.
  13. Finally, the form must be signed by both the Customer and an Authorized Dealership Representative to validate the agreement.

After submitting the form, the dealership will review the provided information and prepare the vehicle for the test drive. It is essential to ensure all details are accurate and correspond to legal documents, as any discrepancies might delay or void the opportunity to test drive the chosen vehicle. Remember, this agreement protects both parties' interests, so take the time to read and understand every clause outlined.

More About Test Drive

  1. What do I need to have to be eligible for a test drive?

    To be eligible for a test drive, you need to present a valid driver's license, showing you're allowed to operate a motor vehicle in the state. Additionally, you must currently have collision and liability insurance that meets or exceeds the state's minimum requirements. This insurance must cover the vehicle while it's in your possession.

  2. Is there a mileage or time limit for the test drive?

    Yes, there are specific limits. You cannot drive the vehicle more than the miles specified by the Dealership. You must also return the vehicle by the agreed time, as stipulated by the Dealership. Returning the vehicle either when demanded by the Dealership or within these limits is mandatory.

  3. Can I take the vehicle out of state or let someone else drive?

    You cannot take the vehicle out of the state or let anyone else drive it, except for the individuals listed in the Comments section of the Agreement. The vehicle should not be used negligently or in any manner contrary to law.

  4. What happens if the vehicle is damaged or involved in an accident?

    Any damage, accidents, theft, or vandalism involving the vehicle must be immediately reported to the police, the Dealership, and your insurance company. You are also responsible for delivering all related documents and notices to the Dealership and covering any related costs, including traffic fines and penalties.

  5. Am I responsible for damages to the vehicle?

    Yes, you are required to pay for any loss or damage to the vehicle that occurs while it's in your possession, along with any expenses related to such damages. This includes defects that were not visibly apparent and noted in the Agreement prior to the test drive.

  6. What are the consequences if I breach the agreement?

    If you breach the agreement or fail to return the vehicle as required, you will be liable for all expenses incurred by the Dealership to retrieve the vehicle. Furthermore, the Dealership has the right to peacefully retake possession of the vehicle. Any belongings left in the vehicle at this point are not the Dealership's responsibility.

  7. What should I inspect before the test drive?

    Before the test drive, you're expected to inspect the vehicle thoroughly and note any visible damages or defects. These notes should be recorded in the Comments section to ensure you aren't held responsible for pre-existing conditions.

  8. How do I finalize the test drive process?

    To finalize the process, sign the Test Drive Agreement to acknowledge the vehicle remains the Dealership's property and you understand the terms and conditions. Upon returning the vehicle, a Dealership representative will check it in, confirming the return condition and odometer reading.

Common mistakes

When filling out a Test Drive form, many overlook details that can impact the clarity and effectiveness of the agreement. Avoiding the following mistakes can save time, misunderstandings, and potential legal hassles down the line.

  1. Not verifying personal information accuracy: Double-check that your name, address, and contact numbers are correct to ensure you're reachable for any follow-ups or issues.

  2. Skipping the insurance information: Confirm that your insurance details, including the company, agent, and telephone number, are up-to-date to prove coverage in case of an incident during the test drive.

  3. Omitting driver's license information: Ensure your driver’s license number, issuing state, and expiration date are accurately recorded. This verifies that you are legally permitted to operate the vehicle.

  4. Forgetting to note the vehicle’s condition before the test drive: It’s crucial to inspect and note any pre-existing damages or defects on the vehicle to avoid disputes or charges for damages not caused by you.

  5. Neglecting to specify Additional Drivers: If the agreement allows, and you intend for someone else to test drive the vehicle with or in place of you, their details must be listed to ensure all drivers are authorized.

  6. Incorrectly recording mileage and return time: Make sure the allowed mileage and expected return time are clearly understood and noted to prevent any overage charges or misunderstandings.

  7. Failing to report incidents: Immediately reporting any accidents, damage, or theft to both the dealership and your insurance is mandatory. Not doing so can lead to significant complications and charges.

  8. Not reviewing terms and conditions thoroughly: Understanding all responsibilities, including potential costs for traffic violations and damages while the vehicle is under your control, is essential. Ignorance of these terms doesn’t excuse breaches.

Avoiding these mistakes can ensure the test drive experience is pleasant and stress-free for both parties. Attention to detail and clear communication go a long way in preventing future disputes or costs.

Documents used along the form

When individuals decide to take a vehicle for a test drive, it signifies a key step in the car buying process. The Test Drive Agreement is crucial but is often part of a suite of documents that facilitate a broader transaction. These documents work together to ensure a transparent, legally sound process for both the dealership and the customer. Understanding these additional forms can help both parties feel more secure and informed throughout the transaction.

  • Vehicle Purchase Agreement - This document outlines the terms and conditions of the sale of the vehicle. It includes the purchase price, warranty information if applicable, and any conditions that must be met before the sale is finalized.
  • Bill of Sale - A bill of sale provides proof of the transaction between the buyer and the seller. It includes details about the vehicle, such as the year, make, model, and VIN, as well as the names and signatures of both parties.
  • Car Insurance Proof - Proof of car insurance is required to legally drive a vehicle off the dealership lot. This document ensures that the new owner has liability coverage as per state regulations.
  • Credit Application - For buyers needing financing, a credit application must be filled out and submitted to the dealership’s finance department or directly to a lender.
  • Roadworthy Certificate - Also known as a safety certificate, this document certifies that the vehicle meets minimum safety standards. While requirements vary by location, it's often a necessary document when transferring vehicle ownership.
  • Vehicle Title - The vehicle title is a legal document that establishes ownership of the vehicle. When a vehicle is sold, the title must be transferred to the new owner's name.
  • Odometer Disclosure Statement - This statement is a federal requirement and is used to declare the accurate mileage of a vehicle at the time of its sale. It helps prevent odometer fraud.
  • Extended Warranty Options - While not always applicable, this document outlines available extended warranty options beyond any manufacturer’s warranty. It specifies what is covered, for how long, and the cost.

Together, these documents provide a comprehensive framework for a legally compliant and thoroughly documented vehicle purchase. From the excitement of deciding to take a test drive to the finalization of the purchase, each form plays an integral role in ensuring a smooth transition to vehicle ownership. By understanding and properly executing these documents, both dealerships and buyers can navigate the car buying process with confidence and clarity.

Similar forms

  • Rental Car Agreement: Similar to a test drive form, a rental car agreement outlines the terms under which a rental company allows a customer to rent a vehicle. It includes identification of the vehicle, renter's information, insurance requirements, restrictions on use, and obligations for damages or loss.

  • Loaner Car Agreement: This document is provided by auto repair shops or dealerships when offering a customer a temporary vehicle while their car is being serviced. It covers similar aspects like driver’s license validation, insurance coverage, usage limitations, and responsibilities for damages.

  • Vehicle Lease Agreement: Though more long-term, this agreement shares elements with a test drive form, such as specifying the vehicle details, lessee’s information, insurance requirements, and conditions for use and return of the vehicle.

  • Equipment Rental Agreement: This agreement covers the rental of equipment but parallels the test drive form in structure, detailing the item being rented, renter's responsibilities, insurance stipulations, and liability for damages or loss.

  • Parking Space Rental Agreement: While focused on a parking space, this document is similar in how it sets forth terms of use, duration of use, liability, and responsibilities of the parties involved.

  • Waiver and Release Form: Often used in events or activities, this form resembles a test drive agreement in its aspect of holding the provider harmless against damages or injuries, outlining participant responsibilities, and acknowledging risks.

  • Vehicle Consignment Agreement: When a dealership sells a vehicle on behalf of an owner, this document lists the vehicle details, consignor and dealership responsibilities, insurance requirements, and conditions similarly seen in a test drive form.

  • Boat Rental Agreement: For renting boats, this agreement has resemblances to a test drive form in terms of outlining rules for use, renters’ responsibilities, insurance needs, and consequences for damages or violations.

  • Bicycle Rental Agreement: This agreement includes similar terms as a test drive agreement, like renter information, usage restrictions, liability for damages, and insurance requirements, tailored for bicycle rental.

  • Mobility Device Rental Agreement: For the rental of mobility devices such as scooters or wheelchairs, this document parallels the test drive form in specifying user responsibilities, rental terms, insurance coverage, and handling of damages.

Dos and Don'ts

When filling out a Test Drive Agreement form, there are several do's and don'ts that can help ensure the process goes smoothly and all parties' expectations are clear. It's important to approach this process with the seriousness it deserves, as it involves legal obligations and potential liabilities. Below are five things you should do, followed by five things you shouldn't do when completing this form.

Do:
  1. Ensure all your personal information is accurate. This includes your name, address, driver's license number, and insurance details. Accuracy in this section is crucial for both your protection and that of the dealership.
  2. Check your driver's license and insurance validity. Confirm that your driver's license is valid for driving in the state and that your insurance coverage meets or exceeds state requirements for both collision and liability during the test drive.
  3. Inspect the vehicle thoroughly before driving. Look for any existing damage or defects and make sure to note these in the Comments section of the form. This can prevent disputes about vehicle condition upon its return.
  4. Understand the limitations and responsibilities. Be clear on how many miles you can drive, the return time, and any geographical restrictions. Also, understand your financial responsibilities in case of damage or theft.
  5. Report any incidents immediately. This includes accidents, damage, theft, or vandalism involving the vehicle. Report these incidents to the police, the dealership, and your insurance company as required.
Don't:
  1. Rush through reading the agreement. Take your time to thoroughly read and understand all the terms and conditions. Skipping this step can lead to misunderstandings about your obligations.
  2. Leave blanks on the form. If a section does not apply, write “N/A” instead of leaving it empty. This shows that you didn’t overlook the section.
  3. Allow unauthorized persons to drive the vehicle. The agreement typically specifies that only the person(s) listed can drive. Letting others drive can breach your agreement and leave you liable.
  4. Ignore limitations set by the dealership. Adhering to mileage limits and return times is part of your responsibility. Disregarding them can result in penalties or additional charges.
  5. Forget to return the vehicle in the same condition. Any loss or damage incurred during your possession needs to be reported and compensated for according to the agreement terms.

Misconceptions

When considering a test drive, many people have misunderstandings about what the Test Drive Agreement really means. It's important to debunk these misconceptions to help potential car buyers feel more at ease and informed about what they are signing. Here are eight common misconceptions and the truths behind them:

  • Only concerned with driving skills: Some think this form evaluates their driving abilities. However, the agreement primarily addresses the legal responsibilities and insurance requirements necessary to protect the dealership and the driver during the test drive.
  • Unlimited mileage: A common mistake is assuming you can drive as far as you like. The agreement specifies a mileage limit to ensure the vehicle remains within a manageable distance from the dealership.
  • Free to take anywhere: It's wrongly assumed that the car can be taken out of state or used for various purposes. The agreement restricts out-of-state travel and requires the vehicle to be used lawfully and responsibly.
  • Any driver permitted: Many believe anyone can drive the vehicle during the test drive. In reality, only those explicitly listed in the agreement are authorized to drive the vehicle.
  • No need to report minor incidents: There's a notion that not all incidents need to be reported to the dealership or insurance. The truth is, any damage, theft, or violation must be reported immediately, regardless of its extent.
  • Dealership handles all expenses: Some potential drivers think the dealership covers all costs. However, any damage or loss incurred during the test drive, along with associated costs, is the driver's responsibility.
  • Leaving personal items in the vehicle is safe: People often assume their belongings are safe in the car during and after the test drive. But the agreement clearly states the dealership is not liable for personal property left in the vehicle.
  • Signing without reading is okay: Lastly, there's a false belief that these agreements are standard and don't need to be read thoroughly. It's crucial to understand every clause you're agreeing to, as it outlines your obligations and the terms of the test drive.

Understanding these aspects of the Test Drive Agreement helps ensure a smooth and clear process for both the dealership and the potential buyer. Always remember to read the agreement carefully and ask questions about any terms that are unclear.

Key takeaways

When engaging in a test drive at a dealership, comprehending the terms and conditions set forth in the Test Drive Agreement is essential for both the dealership and the customer. Here are four key takeaways for effectively filling out and utilizing the Test Drive form:

  • Insurance and Licensing: Before taking a vehicle for a test drive, the customer must possess both a valid driver's license for the state where the test drive occurs and adequate collision and liability insurance. This insurance must meet or exceed the state's minimum requirements and cover the test-driven vehicle.
  • Limits and Responsibilities: The agreement outlines specific limitations regarding the test drive, such as the maximum distance the vehicle can be driven and the latest return time. Additionally, the customer agrees not to take the vehicle out of state, use it negligently, or allow unlisted persons to drive it. Any damage, accidents, theft, or violations must be promptly reported to both the dealership and the customer's insurance company.
  • Vehicle Condition and Damages: Before departing, the customer should thoroughly inspect the vehicle for any pre-existing damage or defects and note these in the agreement. The responsibility for any new damage or loss that occurs during the test drive, along with related costs, falls to the customer. This also extends to covering any expenses from traffic violations incurred while the vehicle is under their control.
  • Consequences of Agreement Breach: Failure to adhere to the terms of the Test Drive Agreement, including returning the vehicle as specified, could result in the customer being liable for all costs incurred by the dealership to retrieve the vehicle. Moreover, the dealership retains the right to repossess the vehicle if necessary and is not responsible for any personal property left inside it.

These guidelines are designed to protect the interests of both the customer and the dealership during the test drive process. Strictly adhering to them ensures a smooth and transparent experience, setting clear expectations for the temporary custody of the vehicle.

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