Are loaner cars considered New or Used?

I thought all loaner cars are still considered new cars, but I saw some inventory on the dealer’s website, they were all under the used category. Is that normal?

Rules will vary by state. In PA, for example, even if the car is used for loaner purposes, as long as it’s not titled, it can still be sold as new up to 5 or 6k miles…can’t recall the exact number.

In CA, on the other hand, it will be listed as Used on the bill of sale.

At the end of the day, it really doesn’t matter as it won’t be your car at the end of the term.

Thanks! so I can’t apply any new car incentive to the loaner cars I guess?

Not necessarily. This is dependent on the manufacturer’s policies. If the car has been titled once, and it is truly “used,” than yes…no incentives will apply. If the car hasn’t been titled, it will depend on the brand and the miles currently on the car as to what can and can’t be applied.

What’s the :crystal_ball: car?


Also keep in mind the warranty. While a loaner/demo can sometimes be leased under a new car program, the factory warranty starts when it’s first put in use and doesn’t reset upon leasing.

I always make sure to remind sales managers that loaners are used cars and their discounts should accurately reflect that. Most try to discount as “new”.

100 different people farting in those things and even though they have a few thousand miles, they’re “hard” miles.

New is the plastic wrappings on the car/seat and you getting to fart in it first.


Always ask how many farts are in the seat, changes the discount significantly

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Neither. They are considered “stolen” and driven accordingly.