Overhaulin'

Can a dealer loan a car out for a day and still call it a new car??

I discovered a loan agreement at (35miles) for a day loan in the glove compartmert. This was not disclosed to me at time of purchase. The odometer read 400 miles when I purchased the car.

Public Comments

1. The car is considered new until it is actually sold. A dealer can use a new car for loan and still call it new unless it goes over so many miles.
2. I wouldn't have bought a new car if there was 400 miles already on there.
3. actually, a car is considered new until it is titled, regardless of the miles. many dealers put new vehicles in demo service, for use by salesman or as vehicles for service customers. the manufacturer will then allow the dealer money incentives, which will often allow the dealer to discount a demo even more, to make up for the miles. it is not out of the norm, though, for even non demos to have miles, because people generally like to test drive.
4. Dealers sell "Demo" cars all the time as new...
5. When you buy a new car, you pay the dealership to register it for you, pay all kinds of taxes and so on. Also, the ownership document should list you as the first owner (for when you want to sell the car). Pre-registeted cars are quite considerably cheaper (usually because they have an older registration mark). If the loan agreement is, in fact, for you car, then they've committed fraud. The difficulty that you will have is that you haven't really suffered any particular loss, and taking them to court would only net you a fairly modest sum. You got the car you expected to receive - no damage, low mileage, etc. However, you should be entitled to recover any registration costs, as they've already done this for their own purposes. THIS IS IMPORTANT: If, in light of this, you wish to return the car to the dealership, cancel the contract, and recover all of your money and expenses, you might be able to do so - but not if you continue to use the car. If you continue to use it, knowing what you do, then you are deemed to have accepted it for what it is, and have no opportunity to pursue the matter. If you need to get around, you may be able to hire a car and recover the cost from them, or obtain a loan car from them, or perhaps even get a loan car from your insurer, depending on your cover. It is definitely worth getting legal advice on this one (I'm absolutely no expert). If you have legal cover with your car insurance, they may be able to advise you. And don't overlook your best weapon - once all else is settled (and if it's not part of an out-of-court settlement), threaten the garage that you'll start phoning the local paper, radio station, and telling anyone else who'll listen how their dealership has defrauded you. If you're going to pursue it, write everything down, keep a copy of everything, only correspond with the garage in writing, and make sure you keep a note of everything that happens, names, dates, etc. There are two remedies the courts might offer you as a settlement for fraudulent misrepresentation.. if I remember rightly, expectation interest (they will give you the cost difference between the car you have and the car you expected to receive) and reliance interest (the money you have lost by relying on promises by the dealership as to what they were going to provide you with). I know the courts favour one over the other, I don't recall which... reliance interest, I think.
6. A vehicle is considered new until it is titled. Demo vehicle & courtesy transportation cars can have over 4,000 miles, yet still be new vehicles. In addition, a vehicle with 400 miles is not a lot considering the amount of dealer trades that happen in todays market place. In your situation, you might want to contact the service department and ask for the In Service Date. This is the time which the vehicle warranty started. If this car was an actual loaner car, then the dealership would have had to put into service so if there were any problems, they would be covered under the warranty. With only 400 miles, it's doubtful they actually put it into service, however I would get the In Service Date and make sure it matches your date of purchase. Good luck and you can email me through Yahoo Answers if you have any questions. edit to Richie P's post: Not all dealerships are required to register a vehicle and if this car was only loaned out and never put into service, then you have no legal case against the dealership. If there was a buyer who previously was 'spot' delivered in the car and they were rejected and had to return it, the car is still considered new and no laws have been broken. I hope this helps to clarify.
7. A dealer does not have to disclose that he loaned a new vehicle, and I assume you are not blind, and were able to see the odometer before you purchased it. You also had to sign an odometer disclosure statement. The dealer committed no fraud, you have no lawsuit, despite what Mr. Know it all says above. It's common for new cars to have a few miles. The only thing a dealer must disclose is any damage over $500.00, that was or was not repaired
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9. The car is considered new until a title is issued for it. Pretend you never found that agreement. Maybe a lot of people test drove the car. It doesn't mean it's used just because it has more than 5 miles on the odometer.