Article Structure
The Test Drive Agreement is a crucial step in the car-buying journey, ensuring both the dealership and the customer understand the terms of the vehicle's temporary use. This form requests essential information from the potential buyer, such as their name, contact details, and driver's license number. It also requires details regarding the vehicle being tested, including its year, make, model, and VIN. By signing the agreement, customers acknowledge key responsibilities, including holding valid insurance and operating the vehicle within specified mileage limits. Furthermore, they agree to report any incidents involving the vehicle, whether it's damage, theft, or accidents, while they possess it. The agreement also clarifies that any damage incurred during the test drive may be the customer’s financial responsibility. Ultimately, the Test Drive Agreement acts as a safeguard for both parties, outlining the obligations of the customer while protecting the dealership's interests in their vehicles.
Test Drive Example
TEST DRIVE AGREEMENT
Dealership Name: |
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Salesperson: |
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Customer Name(s): |
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Street Address: |
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Home Telephone: |
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Work Telephone: |
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Driver’s License#: |
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Issuing State: |
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Expiration Date: |
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Insurance Company: |
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Agent: |
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Telephone: |
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Vehicle Year: |
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Make: |
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Model: |
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VIN: |
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I have requested that the Dealership permit me to test drive the
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: |
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TIME OUT: |
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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 |
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Authorized Dealership Representative |
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For Office Use Only: |
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Checked In By: |
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On: |
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At: ______________ a.m./p.m. |
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Odometer Reading: |
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Comments: |
Form Characteristics
| Fact Name | Details |
|---|---|
| Dealership Identification | The form requires the dealership's name and the salesperson's name for proper identification. |
| Customer Information | Customers must provide their names, addresses, and contact information, including home and work telephone numbers. |
| Driver's License Validation | The customer must possess a valid driver's license from the state where the test drive occurs. |
| Insurance Requirements | Customers are required to have collision and liability insurance that meets state minimums, applicable during the test drive. |
| Mileage Limit | The customer cannot drive more than a specified number of miles, as indicated on the agreement. |
| Return Conditions | The vehicle must be returned by a stated time, in the same condition received, and not removed from the state. |
| Damage Reporting | Any damage, theft, or accidents involving the vehicle must be reported immediately to the police, the dealership, and the insurance company. |
| Liability Acknowledgment | The customer agrees to indemnify the dealership from any losses or claims arising from their use of the vehicle. |
| Possession and Return Clause | If the customer breaches the agreement, they are responsible for costs incurred by the dealership to retrieve the vehicle. |
Guidelines on Utilizing Test Drive
Filling out the Test Drive form is an essential step to ensure a smooth experience when taking a vehicle for a test drive. Completing this form accurately will help both you and the dealership establish clear terms and conditions for the use of the vehicle. Follow the steps below to fill out the form correctly.
- Dealership Name: Write the name of the dealership from which you are requesting the test drive.
- Salesperson: Enter the name of the salesperson assisting you.
- Customer Name(s): Fill in your full name(s) as a customer.
- Street Address: Provide your complete street address.
- Home Telephone: Enter your home phone number.
- Work Telephone: List your work phone number, if applicable.
- Driver’s License#: Write your driver's license number.
- Issuing State: Indicate the state that issued your driver’s license.
- Expiration Date: Enter the expiration date of your driver's license.
- Insurance Company: Provide the name of your insurance company.
- Agent: Enter the name of your insurance agent, if you have one.
- Telephone: List a contact phone number for your insurance agent.
- Vehicle Year: Fill in the year of the vehicle you wish to test drive.
- Make: Indicate the make of the vehicle.
- Model: Write down the model of the vehicle.
- VIN: Provide the vehicle identification number (VIN).
- COMMENTS: Include any additional comments pertinent to your test drive.
- DATE OUT: Write the date you are taking the vehicle out for a test drive.
- TIME OUT: Enter the time you are taking the vehicle out, specifying a.m. or p.m.
- ODOMETER READING OUT: Record the odometer reading at the time of departure.
After completing the form, you will sign to confirm your understanding of the terms and conditions. Be sure to keep a copy for your records, as this will be important during your test drive and any subsequent discussions with the dealership.
What You Should Know About This Form
What information do I need to provide on the Test Drive Form?
You will need to fill out personal details, including your name, address, and phone numbers. Additionally, information regarding your driver’s license and insurance is required. You must also provide details about the vehicle you wish to test drive, including its make, model, and VIN.
What are the restrictions placed on the test drive?
The Test Drive Agreement includes specific limitations, such as a maximum mileage you can drive and a deadline by which the vehicle must be returned. You are not allowed to take the vehicle out of state, and it must be returned in the same condition as received. Only individuals listed in the Comments section may operate the vehicle.
What should I do if I encounter an accident or damage during the test drive?
If you experience any damage, theft, or vandalism, you must report the incident immediately. This includes notifying the police, the dealership, and your insurance company. Additionally, you will be responsible for any associated claims or fines that arise from the event.
What happens if I do not return the vehicle as required?
If you breach the agreement or fail to return the vehicle on time, you will be responsible for any costs incurred by the dealership to recover the vehicle. The dealership may also retrieve the vehicle without legal repercussions. You will be held liable for any losses or damages to the vehicle that occur while it is in your possession.
Am I liable for any damages that occur during the test drive?
Yes, you are responsible for any loss or damage that the vehicle sustains while you are in possession of it. This includes covering repair costs and any related expenses to the dealership. You are also required to indemnify the dealership against any claims resulting from your use of the vehicle.
Common mistakes
When filling out the Test Drive form, many people make mistakes that can lead to confusion or delays. One common error is forgetting to provide a complete name. It's essential to fill in all customer names if multiple individuals are involved. Leaving this section blank or incomplete may cause issues when the car needs to be returned.
Another frequent mistake is not including a valid driver’s license number. This information is crucial to confirm eligibility for test driving. Without it, the dealership might not allow the test drive altogether. Always double-check to ensure that the driver's license number is accurate and up to date.
People often overlook the expiration date on their driver's license when filling out the form. Providing an expired license can create complications and prevent the test drive. Ensuring that this date is current is vital for a smooth experience.
Some individuals forget to include any comments about the vehicle. If there are specific notes regarding damages or concerns, these should be documented clearly in the COMMENTS section. This prevents misunderstandings about the vehicle's condition before and after the test drive.
Additionally, not properly noting the odometer reading can lead to disputes later. Recording the mileage at both the start and end of the test drive is essential to ensure that the agreed-upon limit is adhered to. Capture this information accurately to avoid any chance of exceeding distance limits.
Lastly, people sometimes neglect to sign and date the form. A signature acknowledges understanding and acceptance of the terms and conditions of the test drive. Without it, the form may be considered incomplete. Always remember to sign and date to finalize the agreement.
Documents used along the form
The Test Drive Agreement is a critical document when renting or testing a vehicle. To ensure that all aspects of the test drive process are adequately covered, other forms and documents may also be necessary. Below is a list of documents commonly used in conjunction with the Test Drive form.
- Insurance Verification Form: This document confirms that the customer has valid insurance coverage that meets the state’s minimum requirements for the vehicle being test-driven.
- Driver's License Copy: A copy of the customer's driver's license serves to verify identity and eligibility to operate the vehicle during the test drive.
- Vehicle Inspection Report: This report documents the condition of the vehicle prior to the test drive, noting any existing damage or defects for accountability purposes.
- Liability Waiver: A liability waiver may release the dealership from responsibility for damages or injuries that occur during the test drive, emphasizing the customer's assumption of risk.
- Notification of Uses and Restrictions: This document outlines permissible uses of the vehicle, as well as restrictions such as geographical limits or passenger capacity.
- Return Condition Agreement: The return condition agreement specifies the state in which the vehicle must be returned, ensuring that the dealership has clarity on potential maintenance costs.
- Accident Report Form: In the event of an accident during the test drive, this form aids the customer in documenting the incident for both the dealership and their insurance provider.
- Payment Authorization Form: This form allows the dealership to charge the customer for any damages or additional fees associated with the test drive if necessary.
- Customer Feedback Form: After the test drive, this document collects the customer’s opinions about the vehicle, providing valuable insights for the dealership.
These accompanying documents play essential roles in facilitating the test drive. They help to clarify responsibilities and rights for both the customer and the dealership, ultimately enhancing the operational efficiency and safety of the vehicle testing process.
Similar forms
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Rental Agreement: Like the Test Drive Agreement, a rental agreement outlines the terms and conditions for using a vehicle. It includes information about the renter's responsibility for the vehicle and often requires proof of insurance and a valid driver's license.
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Vehicle Loan Agreement: This document is similar as it specifies the terms under which one can use a vehicle that is financed through a lender. It also necessitates the borrower's proof of insurance and outlines the borrower's obligations in case of damage.
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Lease Agreement: A vehicle lease agreement establishes the terms for leasing a car. It includes mileage limits, insurance requirements, and conditions for vehicle care, paralleling the restrictions found in the Test Drive Agreement.
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Storage Agreement: This document relates to parking a vehicle in a designated area. It typically includes terms about vehicle condition and liability for damage, akin to those articulated in the Test Drive Agreement.
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Service Contract: A service contract covers the terms for vehicle servicing. Similar to the Test Drive Agreement, it includes safeguards against potential damages during the service period and stipulations on notifying the service provider of any issues.
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Insurance Policy: An insurance policy provides coverage requirements for vehicles, much like the obligations seen in the Test Drive Agreement. It mandates valid insurance during the period of possession and outlines liability for damages incurred while the vehicle is in one’s care.
Dos and Don'ts
When filling out the Test Drive form, it is essential to provide accurate and complete information. Below is a list of things to do and to avoid to ensure a smooth process.
- Do double-check your driver's license number for accuracy.
- Do provide your current insurance details.
- Do include any relevant comments about damage or defects.
- Do read the terms and conditions thoroughly before signing.
- Do return the vehicle on time to avoid any extra charges.
- Don't leave any sections of the form blank.
- Don't allow anyone else to drive the vehicle unless specifically permitted.
- Don't omit important contact details, including phone numbers for yourself and your insurance agent.
- Don't neglect to note the mileage on the odometer reading.
- Don't forget to sign the form to acknowledge your understanding of the terms.
Misconceptions
There are several misconceptions that people may have regarding the Test Drive form at a dealership. Understanding these can help clarify the expectations and responsibilities involved in test driving a vehicle.
- Misconception 1: Signing the Test Drive form grants ownership of the vehicle.
- Misconception 2: Insurance coverage is unnecessary for a test drive.
- Misconception 3: Any driver can operate the vehicle during the test drive.
- Misconception 4: The dealership is responsible for any damages incurred during the test drive.
- Misconception 5: The distance driven during a test drive is unlimited.
- Misconception 6: The dealership has liability for personal belongings left in the vehicle.
This is not the case. The Test Drive form explicitly states that the vehicle remains the property of the dealership, and the agreement only allows for temporary use under specified conditions.
Before taking a test drive, individuals must demonstrate that they have valid insurance coverage that meets or exceeds state requirements. This is clearly outlined in the agreement.
The form restricts vehicle operation solely to the individual(s) listed in the comments section. Unauthorized drivers may violate the terms of the agreement.
While in possession of the vehicle, the individual is responsible for reporting any damages, accidents, or theft. They must also bear the costs of any repairs or losses incurred during this time.
The agreement clearly specifies a maximum distance that can be driven and mandates that the vehicle be returned at a designated time. Failure to adhere to these limits can lead to additional charges.
The form states that the dealership is not liable for any loss or damage to items left inside the vehicle. Customers should remove all personal belongings before returning the vehicle.
Key takeaways
- Complete the Form Accurately: All sections, including dealership details, customer information, and vehicle specifics, must be filled out thoroughly to ensure clarity and accountability.
- Valid Driver's License: You must possess a valid driver’s license suitable for operating a motor vehicle in your state during the test drive. This is non-negotiable.
- Insurance Requirements: Ensure that you have valid collision and liability insurance that meets or exceeds state requirements, covering the vehicle while it is in your possession.
- Return Guidelines: Adhere to the mileage limit and return time specified on the form to avoid any additional fees or penalties.
- Report Incidents Promptly: If any damage, theft, or violation occurs during the test drive, you must report it immediately to the police, the dealership, and your insurance company.
- Inspection of the Vehicle: Conduct a personal inspection of the vehicle to ensure there is no visible damage. Any discrepancies should be noted in the comments section.
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