A document outlining the terms and conditions under which a prospective buyer can operate a vehicle belonging to a dealership or private seller for a limited period to assess its suitability. Such an agreement typically includes details regarding insurance coverage, liability for damages, permitted usage, and duration of the evaluation period. For instance, a potential purchaser may sign one before taking a new car from a dealership for an extended test.
These agreements are vital for protecting both the vehicle owner and the prospective buyer. They clarify responsibilities in case of accidents, damage, or misuse, minimizing potential disputes and financial losses. Historically, informal arrangements were more common, leading to ambiguity and increased risk. Standardized forms now offer increased security and transparency for all parties involved.