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Just as we try on clothes to ensure they are the right fit before we buy them, vehicles are no different.  The majority of customers in the market for a new car want to take a prospect for a test drive, and allowing customers to do so builds trust with the dealer, making it more likely for them to purchase. Of course, allowing test drives can present significant risks. In this article, we discuss the risks associated with test drives and how to protect your dealership with a rock-solid test drive procedure and agreement.

If you are more of an audio/visual type, click below to watch the YouTube version of this blog.

What is Considered a Test Drive?

A test drive is any scenario where a dealer allows a customer to operate a vehicle prior to purchasing it. Offering test drives is a great way for customers to have full trust in the buying process. It give customers peace of mind knowing that the dealer is not trying to hide something by refusing to allow a test drive.

A standard vehicle test drive agreement form Test Drive Procedures & Agreements

At Lefkoff Law, we’ve seen too many cases where a dealer allows a customer to take a car out with no agreement. They don’t even provide a driver’s license to the dealer. Then, the car disappears or it is found in an accident. The disappearance of a car or a possible accident without a test drive agreement can become an insurance nightmare and cost dealership a boatload of money.

This is why the following should be non-negotiables for vehicle test drives:

  1. Have a test drive procedure in place that all employees understand/are trained on and that can be easily explained to customers
  2. Present a written test drive agreement indicating that the customer must return the vehicle (see the sample agreement to the right)
  3. The customer MUST sign the agreement– they refuse, it is recommended that s dealer no allow the test drive
  4. Get a copy of the customer’s driver’s license to keep with the signed agreement

How We Can Help

If you are looking for more support when it comes to understanding test drive agreements, you can find more information at You can also book a strategy session with us here. We’ll personalize your counsel and guide you through everything to ensure your business is protected.

Looking for more legal know-how to protect and empower your business? Join The Driveway, our monthly legal membership program. Check it out here!

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