The Test Drive Agreement is a formal document that allows a customer to operate a vehicle from a dealership for a limited time. This agreement outlines the responsibilities and liabilities of the customer, ensuring that both parties understand the terms under which the vehicle may be driven. By signing this document, customers acknowledge their obligations regarding insurance, vehicle condition, and the return of the vehicle to the dealership.
The Test Drive form serves as a crucial document for both customers and dealerships, ensuring a smooth and accountable vehicle test drive experience. This form captures essential information, including the dealership's name, salesperson details, and customer identification, such as names, addresses, and contact numbers. It also requires information about the vehicle, including its year, make, model, and VIN. By signing the form, customers acknowledge their understanding of the terms and conditions associated with the test drive, which includes the necessity of holding a valid driver’s license and maintaining appropriate insurance coverage. Customers agree to specific limitations, such as the maximum distance they can drive the vehicle and the requirement to return it by a designated time. Furthermore, the form outlines the responsibilities of the customer regarding the vehicle's condition, reporting any incidents, and covering any damages incurred during the test drive. This agreement not only protects the dealership but also provides clarity for the customer, ensuring that both parties are aware of their obligations and the expectations for the vehicle's use.
When filling out the Test Drive form, it's essential to approach the process with care. Here are seven important things to do and avoid:
When filling out and using the Test Drive form, keep these key takeaways in mind:
Filling out this form accurately and understanding your obligations is crucial. It protects both you and the dealership during the test drive process.
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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
For Office Use Only:
Checked In By:
On:
At: ______________ a.m./p.m.
Odometer Reading:
Comments:
There are several misconceptions surrounding the Test Drive form that can lead to confusion for customers. Below are five common misunderstandings, along with clarifications to help set the record straight.
While it may seem like a simple document, the Test Drive form outlines important terms and conditions. It serves as a legal agreement between the customer and the dealership, ensuring both parties understand their responsibilities during the test drive.
The form clearly states that only individuals listed in the comments section are permitted to operate the vehicle. Allowing others to drive can result in liability issues for both the customer and the dealership.
Customers are responsible for any loss or damage to the vehicle while it is in their possession. This includes paying for repairs and any related expenses incurred by the dealership.
The form specifies a mileage limit that cannot be exceeded. Customers must return the vehicle to the dealership by the agreed-upon time, ensuring it is in the same condition as when it was received.
The dealership is not responsible for any loss or damage to personal property left in the vehicle. Customers should remove all belongings before returning the car to avoid any potential issues.