A car can typically be sold as "new" with up to a few hundred miles on the odometer, often falling within a range of 200 to 500 miles. The critical factor isn't a specific federal mileage limit but whether the vehicle has ever been issued a title. A car is legally considered new if it has not been titled to a retail buyer. These miles are usually accumulated through test drives, transfers between dealerships, or use as a dealer demonstration vehicle.
Understanding "New" Car Mileage
When a car arrives at a dealership from the factory, it may have a few miles from factory testing and offloading. The miles you see are added by dealership staff during pre-delivery inspections, moving cars on the lot, or fulfilling test drive requests. A demo car, used by dealership employees for several months, can have several thousand miles and still be sold as new, but it must be clearly advertised as a demonstrator and sold at a significant discount.
Your Rights and What to Check
Federal and state "new" car laws focus on title status. However, you must be informed of the exact mileage before purchase. A window sticker (Monroney label) is required on new cars, and an addendum sticker should disclose any added miles or that it was used as a demo. If you discover unexpected high mileage after the sale, it could be grounds for a complaint under deceptive practice laws.
Negotiating a "New" Car with Miles
A new car with higher mileage is a prime opportunity for negotiation. Use the mileage as leverage to ask for a lower price or additional perks. Always get the vehicle's complete history and ensure its warranty start date aligns with your purchase date, not when the dealership first received it.
| Scenario | Typical Mileage Range | Key Consideration |
|---|
| Factory/Delivery | 5 - 15 miles | Standard; no impact on value. |
| Test Drives/Lot Moves | 50 - 200 miles | Normal; minor wear. |
| Dealer Trade (Transfer) | 100 - 400 miles | Common; car driven from another dealer. |
| Dealer Demonstrator | 500 - 5,000+ miles | Must be disclosed; warranty clock may have started. |
| Executive/Loaner Vehicle | 2,000 - 10,000+ miles | Sold as "new" but heavily used; requires deep discount. |
