The Test Drive Agreement is a document that allows customers to temporarily operate a vehicle from a dealership under specific terms and conditions. This form collects essential information, including the customer's personal details, vehicle information, and stipulations regarding the use of the vehicle. Completing this form is a crucial step for anyone interested in experiencing a vehicle before making a purchase decision.
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The Test Drive form serves as an essential document for both dealerships and customers, ensuring a smooth and transparent experience when evaluating a vehicle. It captures vital information, including the dealership's name, the salesperson's details, and the customer's personal information such as their address and contact numbers. Notably, the form requires customers to provide their driver's license information, including the issuing state and expiration date, along with insurance details. This establishes that the customer is legally permitted to operate the vehicle and has adequate coverage in case of any incidents during the test drive. The form outlines specific terms and conditions, such as mileage limits, return times, and responsibilities regarding damages or accidents. Customers must agree to report any issues immediately and are held accountable for any loss or damage incurred while the vehicle is in their possession. Additionally, the document emphasizes that the dealership retains ownership of the vehicle and outlines the consequences of failing to return it as agreed. By signing the form, customers acknowledge their understanding of these terms, which are designed to protect both parties throughout the test drive process.
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
For Office Use Only:
Checked In By:
On:
At: ______________ a.m./p.m.
Odometer Reading:
Comments:
Dr312 - Personal representatives acting on behalf of decedents should be familiar with this form.
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Many people believe that signing the Test Drive form is merely a formality. In reality, it serves as a legal agreement outlining the responsibilities of both the dealership and the customer. It’s essential to understand that this document protects both parties.
Some individuals think they can allow friends or family to drive the test vehicle. However, the agreement specifically states that only the authorized individuals listed in the comments can operate the vehicle. This is crucial for insurance and liability reasons.
It’s a common misunderstanding that insurance isn’t necessary for a test drive. The form clearly indicates that you must have valid collision and liability insurance that meets state requirements. This protects you and the dealership during the test drive.
Many believe they can take the test vehicle anywhere. However, the agreement restricts driving to within state boundaries and requires returning the vehicle in the same condition. This is to prevent misuse or accidents outside of the dealership's control.
Some customers think they won’t be liable for any damages that occur during the test drive. The form states that you are responsible for any loss or damage while the vehicle is in your possession. Understanding this can help avoid unexpected costs.
It’s a misconception that the dealership’s insurance will cover all accidents. The agreement emphasizes that you must report any incidents to your insurance company, as you are responsible for any claims arising from your use of the vehicle.
Some people think they can return the vehicle whenever they choose. However, the agreement specifies a return time, and the dealership can demand an earlier return if necessary. This helps maintain order and availability of vehicles for other customers.
Lastly, there’s a belief that the Test Drive form isn’t legally binding. In fact, by signing it, you are entering into a legally enforceable agreement. It’s essential to read and understand the terms before signing to avoid any legal issues later on.
When engaging in a test drive, several additional forms and documents often accompany the Test Drive Agreement. Each of these documents serves a specific purpose, ensuring clarity and protection for both the dealership and the customer. Below is a brief overview of five commonly used documents.
These accompanying documents enhance the overall experience of the test drive process. They not only protect the interests of the dealership but also ensure that customers are informed of their responsibilities and the conditions under which they operate the vehicle. By completing these forms, both parties can engage in a more transparent and secure transaction.