What is done with test drive cars?

What is done with test drive cars?

Introduction to Test Drive Cars

Test drive cars, as the name suggests, are the vehicles that customers test before making a purchase. They are the cars that we take out for a spin to get a feel of how they drive, how comfortable they are, and if they meet our requirements. Dealerships have a dedicated fleet of cars meant for test drives, often one or two of each model. But have you ever wondered what happens to these cars once they have served their purpose? Where do they go? Are they sold, scrapped, or just left to rust? Let's delve into the life of test drive cars after they've finished their initial duty.

The Sales Route

One of the most common routes taken by dealerships for test drive cars is to sell them. After a certain period, or after the car has accumulated a set number of miles, the dealership might decide to sell the car. These vehicles are typically sold as "demo" or "program" cars. They are sold at a lower price than a brand new car because they have been driven, although not as much as a typical used car.

When selling these cars, dealerships disclose the fact that they were used for test drives. This transparency helps the buyer make an informed decision. Despite the mileage, these cars are often a great deal as they are usually well-maintained, clean, and come with the remainder of the factory warranty.

Leasing Option

Another common option for test drive cars is to lease them. Leasing is a popular choice for customers who want to drive a new car every few years. Test drive cars make excellent lease vehicles because they are nearly new but come at a significantly lower cost. It's a win-win situation for both the dealership and the customer.

Leasing these cars not only gives them a second life but also brings in a steady stream of revenue for the dealership. Plus, at the end of the lease term, the dealership gets the car back and has the option to either sell it, lease it again, or use it as a test drive car, thereby extending its lifecycle.

Internal Use by the Dealership

Dealerships might also choose to use the test drive cars for their own purposes. For instance, they might use them as service loaners, offering them to customers whose vehicles are being repaired. This not only keeps the customer happy but also keeps the car in use.

Alternatively, they might use the vehicle for promotional purposes, like in parades or other events. Some dealerships might even use them as company cars, providing them to employees to use. This not only gives the car a second life but also serves as a great tool for promoting the dealership and the brand.

Vehicle Auctions

Lastly, some test drive cars end up at vehicle auctions. Dealerships might choose this route if the car has been in the test drive fleet for a long time and hasn't been sold or leased. Vehicle auctions are a quick way to get rid of older inventory and make room for newer models.

Auctions are also an option if the car has too many miles on it or if it has been damaged. While the car might not be appealing to a regular customer, it might be to a mechanic or a car enthusiast looking for a project. Thus, even in an auction, the test drive car gets a chance at a new life.