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Test Drive Template

The Test Drive Agreement is a formal document between a dealership and a customer, outlining the terms under which the customer is permitted to test drive a vehicle. This agreement includes crucial details such as the identification of the vehicle, the duration of the test drive, insurance requirements, and the responsibilities of the customer in case of damage, loss, or legal violations while the vehicle is under their possession. For those looking to embark on a test drive, understanding these conditions is essential for a smooth and informed experience.

To learn more about the specifics of the Test Drive Agreement and to ensure a safe and legally compliant test drive, consider filling out the accompanying form by clicking the button below.

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Table of Contents

In the realm of automotive transactions, the Test Drive Agreement forms a vital bridge of understanding between the dealership and the potential buyer. It lays out the fundamentals: the dealership's name along with the salesperson's, and introduces the test-driver through their name, contact information, and driver's license details. Clear stipulations are set about the vehicle - its year, make, model, and unique Vehicle Identification Number (VIN), ensuring both parties are on the same page about what is being test-driven. Through this document, the driver acknowledges the condition of the vehicle, agrees to a set radius of operation, a specific return time, and to retain its condition as received. It goes further to demand that the driver reports any incidents affecting the vehicle and holds responsibility for any traffic violations incurred during the test drive. Additionally, it stresses the necessity of having valid personal insurance that extends to the vehicle during the test period. The clause requiring the driver to reimburse the dealership for any damages underlines the seriousness of this responsibility. Furthermore, it highlights the legal and financial ramifications should the agreement's terms be breached, including potential repossession of the vehicle by the dealership. This agreement encapsulates a comprehensive approach to mitigate risks while providing a clear framework for the prospective buyer to evaluate the vehicle, thereby serving as a crucial document in the vehicle evaluation 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

Date

 

 

 

 

 

 

 

For Office Use Only:

 

 

 

 

 

Checked In By:

 

 

On:

 

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

Odometer Reading:

 

Comments:

Form Breakdown

Fact Name Description
Valid Driver's License Requirement Test drivers must have a valid driver's license to operate a motor vehicle in the issuing state.
Insurance Requirement Test drivers must have collision and liability insurance that meets or exceeds the state's minimum requirements.
Mileage and Return Time Restrictions The vehicle cannot be driven more than a specified number of miles and must be returned by a designated time.
Vehicular Usage Restrictions Removing the vehicle from the state, negligent use, or use contrary to law is prohibited.
Accident and Damage Reporting Any damage, accident, theft, or vandalism involving the vehicle must be immediately reported to the police, the dealership, and the insurance company.
Pre-Test Drive Vehicle Inspection Test drivers must inspect the vehicle for visible damage or defects before the test drive.
Financial Responsibility for Damages Test drivers must pay for any loss or damage to the vehicle that occurs while it is in their possession, along with the dealership's related expenses.
Indemnification Test drivers agree to defend, indemnify, and hold the dealership harmless from losses or damages arising from their use of the vehicle.
Consequences of Agreement Breach Breaching the agreement or failing to return the vehicle as required may result in the test driver paying for vehicle retrieval expenses.
Property Liability Disclaimer The dealership is not liable for loss or damage to personal property left in the vehicle before or after its return.

Guidelines on Filling in Test Drive

Before taking a vehicle from a dealership out for a test drive, it's necessary to fill out a Test Drive Agreement form. This process helps ensure both the dealership's property is protected and that the person test driving the vehicle understands their responsibilities. This step-by-step guide walks through the necessary information and agreement terms you must review and acknowledge. Carefully filling out this form is essential for a smooth and legally sound test drive experience.

  1. Enter the Dealership Name in the designated field to identify the dealership offering the vehicle for a test drive.
  2. Write the name of the Salesperson assisting you with the test drive.
  3. Provide Customer Name(s) for all individuals who will be involved in the test drive process.
  4. Fill in your Street Address to ensure there's a record of your residence.
  5. Include your Home Telephone and Work Telephone numbers for contact purposes.
  6. Enter your Driver’s License#, stating the license number accurately.
  7. Indicate the Issuing State of your driver's license to confirm its validity.
  8. Specify your driver's license Expiration Date to demonstrate it's currently valid.
  9. List your Insurance Company, Agent, and their Telephone number to verify insurance coverage.
  10. Detail the Vehicle Year, Make, Model, and VIN of the vehicle you intend to test drive.
  11. Acknowledge the terms and conditions by reading the listed points regarding insurance, vehicle use restrictions, reporting obligations, and financial responsibilities in case of damages or legal issues.
  12. In the COMMENTS section, write any additional information or special conditions agreed upon for the test drive.
  13. Record the DATE OUT and TIME OUT, indicating when the test drive begins.
  14. Fill in the ODOMETER READING OUT to document the vehicle's mileage before the test drive.
  15. Sign the form to acknowledge that you understand and accept the terms for the test drive. This includes the personal inspection agreement, commitment to pay for damages, and insurance coverage confirmation.
  16. Ensure the Authorized Dealership Representative also signs the agreement to validate it.

Once this form is completed and signed by both parties, the dealership will have a record of the test drive terms, and you'll be authorized to proceed with the test drive under the conditions stated. Pay careful attention to each section to fully understand your obligations and rights. Remember, this agreement is for your protection as much as it is for the dealership's.

Learn More on Test Drive

What documentation do I need to provide to test drive a vehicle?

To participate in a test drive, you are required to provide a valid driver's license issued by your state that permits you to operate a motor vehicle legally. Additionally, you must have collision and liability insurance that not only meets or surpasses the minimum state requirements but also covers the vehicle during the test drive period. Ensure these documents are current and accessible during your test drive appointment.

Can I take the vehicle out of state or let someone else drive during the test drive?

No, the agreement specifically restricts removing the vehicle from the state where the dealership resides. Furthermore, you are not allowed to let any other person operate the vehicle during the test drive, except for individuals who are listed in the Comments section of the Test Drive Agreement. These limitations are in place to manage the risk and liability for both the dealership and the customer during the test drive period.

What steps should I follow if the vehicle gets damaged, or I encounter traffic violations during the test drive?

  1. Immediately report any accident, damage, theft, or vandalism involving the vehicle to the police, the dealership, and your insurance company.
  2. Provide the dealership with all notices, pleadings, and documents related to any claim, suit, or legal proceeding involving the vehicle during the test drive.
  3. Report to the dealership and settle any parking or traffic violation fines and penalties that occur due to your use, possession, or control of the vehicle.

Following these steps promptly ensures that the necessary parties are informed and can take appropriate action to mitigate issues efficiently.

Who is responsible for damages or losses to the vehicle during a test drive?

The responsibility for any loss or damage to the vehicle that occurs while it is in your possession or under your control falls to you. You are required to pay not only for the loss or damage to the vehicle but also for the dealership's related expenses arising out of your use, possession, or control of the vehicle. Additionally, you agree to defend, indemnify, and hold the dealership harmless from any losses, liabilities, damages, injuries, claims, demands, costs, and expenses that arise from your use of the vehicle or any breach of the responsibilities outlined in this Agreement.

Common mistakes

Filling out a Test Drive Form is a crucial step before taking a vehicle out for a spin. However, mistakes can happen. Here are some common ones:

  1. Not verifying the Driver's License information accurately, including the license number, issuing state, and expiration date. This is essential for both legal and insurance purposes.
  2. Failing to provide correct insurance details, such as the insurance company name, agent, and telephone number. It's vital since coverage must meet or exceed state requirements and cover the vehicle during the test drive.
  3. Overlooking the need to list all potential drivers in the Comments section. The agreement generally restricts vehicle operation to the individual(s) named on the form unless otherwise specified.
  4. Ignoring to specify any existing damage or defects on the vehicle before the test drive. Not noting these can lead to disputes if the dealership claims new damage was incurred during the test drive.
  5. Not adhering to the mileage and return time limitations. Exceeding these can result in penalties or additional charges.
  6. Forgetting to report any incidents, such as damage, accidents, theft, or vandalism, immediately to the police, dealership, and insurance company. This is a crucial step in the process and responsibilities under the agreement.
  7. Omitting to check and note the odometer reading at both the start and end of the test drive. This helps in monitoring mileage used during the test drive.
  8. Failing to fully read and understand all the terms and conditions before signing the agreement. This oversight can lead to unintended breaches of the agreement.

By paying close attention to these areas, individuals can ensure a smoother and more compliant test drive experience.

Documents used along the form

When preparing for or following up on a test drive, there are several key documents and forms that individuals and dealerships frequently need to manage. These documents ensure that the process is thorough, legal, and clear for both parties involved. From ensuring a prospective buyer is qualified to documenting the condition of the vehicle before and after the test drive, each form plays a crucial role in the process.

  • Vehicle History Report: This document provides comprehensive information about the vehicle's past, including previous owners, accidents, repairs, and maintenance history. It helps in making an informed decision.
  • Loan Application Form: If financing is required for purchasing the vehicle, this form gathers the buyer's financial information to determine loan eligibility and terms.
  • Credit Authorization Form: This authorizes the dealership to check the customer's credit history as part of the loan application process, ensuring they meet the financial requirements for vehicle financing.
  • Sales Contract: Once a decision to purchase is made, this legal document outlines the terms and conditions of the sale, including price, fees, warranties, and the obligations of both parties.
  • Vehicle Inspection Checklist: Before and after the test drive, this checklist is used to document the condition of the vehicle, noting any existing damage or issues to prevent future disputes.
  • Insurance Verification Form: This confirms that the customer has adequate insurance coverage that extends to the test-driven vehicle, protecting both the dealership and the customer in case of an accident.
  • Driver’s License Copy: A photocopy of the driver's license is kept on file to verify the customer’s identity and ensure they have a valid driver’s license, as stated in the Test Drive Agreement.
  • Trade-In Evaluation Form: For those looking to trade in their current vehicle towards the purchase, this form helps assess the trade-in vehicle's condition and value.
  • Odometer Disclosure Statement: This form records the vehicle’s mileage at the time of sale, providing an official record that can protect both parties against odometer fraud.

Together, these documents complement the Test Drive Agreement by covering all bases related to the vehicle's condition, the buyer's eligibility and intentions, and the terms of the test drive and potential sale. Proper use and management of these forms can help streamline the purchase process, ensuring clarity and protection for both the customer and the dealership.

Similar forms

  • A Rental Agreement is similar to a Test Drive Agreement because both documents outline the terms and conditions under which a vehicle can be used by someone other than the owner. They specify insurance requirements, return conditions, and the responsibility for damages.

  • An Equipment Loan Agreement has similarities with a Test Drive Agreement in the sense that both detail the obligations of the borrower to return the item in the same condition, report damages, and cover any losses or damages occurred during the loan period.

  • A Lease Agreement is similar because it also includes terms for the use of property (in this case, usually real estate) that must be adhered to, such as conditions on how the property can be used, insurance requirements, and the consequences of damages or loss.

  • A Liability Waiver is akin to a Test Drive Agreement as both include indemnity clauses. These clauses require the individual to assume responsibility for certain risks and legal liabilities, in this case, related to driving the dealership’s vehicle.

  • A Property Management Agreement mirrors a Test Drive Agreement in its structure of outlining responsibilities for care and maintenance, rules for use, and liability in the case of damage. While it typically applies to real estate, the core principles of managing another’s property responsibly are similar.

  • The Credit Card Authorization Form shares commonalities with a Test Drive Agreement regarding financial responsibility. Both may involve holding the signer accountable for charges incurred due to damages, losses, or additional fees stipulated in the agreement.

Dos and Don'ts

When filling out a Test Drive Form, it's important to pay close attention to the details to ensure a smooth experience for both the customer and the dealership. Below are lists of what you should and shouldn't do:

What You Should Do:

  1. Verify your information: Double-check your personal information (name, address, phone numbers) for accuracy.
  2. Confirm your insurance coverage: Make sure you have valid collision and liability insurance that meets state requirements and covers the test drive vehicle.
  3. Inspect the vehicle: Thoroughly inspect the vehicle before driving and note any visible damage or defects.
  4. Understand the terms: Read and understand all the terms and conditions, including mileage limits, return times, and prohibition on out-of-state travel.
  5. Report incidents: Agree to report any accidents, damage, or theft involving the test vehicle to the police, dealership, and your insurance company promptly.

What You Shouldn't Do:

  • Forget your driver’s license: Do not attempt to fill out the form or take a test drive without a valid driver's license.
  • Omit information: Avoid leaving sections of the form blank, specifically the vehicle information, your insurance details, and driver’s license information.
  • Ignore terms and conditions: Ensure you do not overlook the limitations and requirements set by the dealership, including the return condition of the vehicle.
  • Let unauthorized drivers operate the vehicle: Do not allow others to drive the vehicle unless they are authorized and listed in the form.
  • Fail to report: Never ignore the responsibility to report any issues during the test drive period as outlined in the agreement.

Misconceptions

When reviewing Test Drive Agreements, people often come across misconceptions that can lead to confusion and misunderstanding of what these documents entail. It's important to clear up these misconceptions to ensure that both the customer and the dealership have a clear understanding of the agreement's terms.

Misconception 1: Insurance is Optional

There's a common belief that the dealership's insurance coverage is enough during a test drive, making additional insurance unnecessary. This is incorrect. The agreement clearly states that the driver must have a valid driver’s license and current insurance that meets or exceeds state requirements. This ensures that in the event of an accident, the driver's insurance is the primary coverage.

Misconception 2: Unlimited Mileage and Use

Another misconception is that once you're on a test drive, you can drive the vehicle as far and however, you want. The truth is, there are specific limitations set on how many miles you can drive and how long you can keep the vehicle. Additionally, the vehicle cannot be taken out of state, used negligently, or contrary to law. These terms are in place to protect the dealership's property while still allowing a thorough evaluation of the vehicle.

Misconception 3: Any Driver is Permitted

It's often thought that as long as the primary driver meets the conditions, anyone can drive the vehicle during the test period. The agreement, however, restricts vehicle operation to those listed in the agreement. This stipulation helps manage accountability and insurance coverage issues.

Misconception 4: Dealership is Responsible for Damages

Some people believe that any damages incurred during a test drive are the dealership's responsibility. The agreement distinctly outlines that the driver must report and bear the cost for any damage or loss to the vehicle that occurs while it's under their possession, along with related dealership expenses. This clause is crucial for incentivizing careful use of the vehicle.

Misconception 5: Personal Property is Covered

Lastly, there is a false assumption that personal property left in the vehicle during or after the test drive is covered by the dealership. If personal items are lost or damaged, the dealership is not liable, as stated in the agreement. This clause underlines the importance of removing personal belongings to avoid potential losses.

Understanding these key aspects of a Test Drive Agreement helps both parties engage in a test drive with clear expectations and responsibilities, ensuring a straightforward and positive experience.

Key takeaways

When filling out and using a Test Drive form, it's crucial to pay attention to detail and understand the responsibilities involved. Here are key takeaways to ensure a smooth and informed test-driving experience:

  • Verify License and Insurance: Confirm that your driver’s license is valid for operating a motor vehicle in the state and that you have collision and liability insurance meeting or exceeding state minimums.
  • Mileage and Return Time: Note the mileage limit and the specific time by which the vehicle must be returned to the dealership. Adhering to these limits is mandatory.
  • Geographical Restrictions: Be aware that removing the vehicle from the state or driving it negligently, contrary to law, is strictly prohibited.
  • Report Incidents: Immediately report any damages, accidents, theft, or vandalism involving the vehicle to both the police and the dealership, in addition to notifying your insurance company.
  • Inspection Prior to Use: Carefully inspect the vehicle for any visible damage or defects before the test drive and note any issues in the comments section of the form.
  • Financial Responsibility: Be prepared to cover any losses or damage to the vehicle that occur while it is in your possession, including related dealership expenses.
  • Legal and Financial Consequences: Understand that breaching the agreement or failing to return the vehicle as required could lead to significant legal and financial consequences, including covering the dealership's expenses for the vehicle retrieval.
  • Removal of Personal Belongings: Remove all personal belongings from the vehicle before returning it, as the dealership is not liable for lost or damaged property left in the vehicle.

By comprehensively filling out the Test Drive form and adhering to its terms and conditions, drivers can ensure a responsible and enjoyable test-driving experience while avoiding potential issues.

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