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Community Alumni
Aug 09, 2016valhalla360 wrote:
I'm not sure if there is a legal definition for RV's but for cars, if you use them even without titling them, you can't sell them as new. They typically use "Demo" as a work around to imply like new without actually saying it.
Test drives usually aren't considered to break the "new" status as it's part of the marketing. If the dealer had said it was on a test ride with another prospective buyer for the weekend, it might be a gray area but loaning it out to friends and family doesn't cut it. That is clearly damaging the "new" status.
Reality is the salesman is going to get chewed out if the owner finds out he admitted what was happening but only for admitting it not because it was happening.
Down here new actually does have a definition for cars.
"New motor vehicle" means a motor vehicle that has not been the subject of a retail sale regardless of the mileage of the vehicle.
If it hasn't been previously sold or registered before then its sold as "new". Loaner and demo cars are still sold as "new" since they have not been previously sold. All incentives and rebates still apply just as it would with a car that had 0 miles. Typically the warranty starts on the date of purchase at the current odometer reading.
That's how it works in most states. If a year old demo was up for sale with 5,000 miles then it's still a "new" vehicle. A few states place mileage limits on their new definition, but you're still talking about several thousands of miles until you hit that limit. Works the same with RVs. Even if 20 potential customers spent a night in it to test it out, it's still considered new until someone buys it.
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