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What is a Program Car?

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A program car is one that the dealer has either put into rental service or even sometimes special use by dealer staff/manager, etc.

It should not be sold as new, that is for sure. It is used.

-Brian

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"A program car is one that the dealer has either put into rental service or even sometimes special use by dealer staff/manager, etc.

It should not be sold as new, that is for sure. It is used."


No, what you're describing is a dealer demo. A program car is typically one that the Dealer has purchased at auction (usually from a fleet company, ie: Hertz).

Yes, the Sales Mgrs / Salespeople often use these as demos because they ARE previously titled vehicles & are therefore considered "Used", regardless of mileage. They are often purchased with between 5k-10k miles & offered for sale at a substantial discount from retail.

Most demos / service loaners / rentals are NOT considered "used cars" because they have NOT been previously titled. However ~ depending on the State you're purchasing the car in, most are considered "used cars" after 7500+ miles, regardless of whether the car has been titled or not.

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here's the inside scoop on car guy lingo...

Program Car...1-3 year old car bought at auction, usually in high volumes. the majority of these units are rentals, but not every state requires disclosure of that fact so "program car" is used. a well trained salesperson, when asked what a program car is will usually tell you something to the effect of "we buy these from the manufacture at special sales open only to new <insert brand here> dealers. most of them are factory demos, executive cars, and lease returns."

Demo...two meanings.
#1 Demo = car guy speak for tanking a test drive. "Bossman, I am going for a demo in the used Impala."

#2 Demo = a perk offered at some stores to some employees. this is a car they get to drive for personal use. most stores only offer new, untitled "Demos" to their managers. a new car can be sold as "new" with less than 5000 to 7500 miles depending on the state and the manufacturer. these "new" demos can come with a few catches though. some manufacturers require a dealership to report a car used as a demo, and that starts the cars warranty. so even though its "brand new" as a demo it may be missing 6months and 6000 miles off the warranty. so, buyer beware!

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Depending on the dealership salespeople can use some vehicles as their own Demo - meaning they use it as their personal vehicle up to a certain mileage and then have to "park" the vehicle until it is sold.

When a manager / sales person demo's a vehicle, it is not considered used because it is not being titled. Most states now require it to be considered used if it has 5000 miles on it or more regardless of not being titled before. Some states do 6000, some do 7500.

Warranties on these vehicles sold as they are, start from whatever mileage is on it at time of purchase. So if your purchase a demo'd vehicle that has 3645 miles on it, your warranty would last 3 years or 39,645. Your limited powertrain would be extended in the same way as well. If you are purchasing a vehicle and are not getting this straight then I recommend you look to another dealer.

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