As long as it has never been used on the road by any any previous registered keepers it can be sold as new.
It can be sold as a new car as long as the ownership has not been transfered from the selling dealer to an individual, and an original title was not created. Once a car gets an excess amount of mileage, it is called a demonstrator. A demonstrator should be discounted due to the mileage.
One point here is if the dealer searches for a car for you and it is say.. 500 miles away, it will have 500 miles+ when it gets there for you to take. Not only this, but the dealer will charge you for the transportation service to drive it to you at his dealership! (sould like a good deal huh?)
It has nothing to do with the miles. It has to do with the title. If the car has never been titled it can be sold as new. Typically in the situation of a demo a dealer will put less than 5,000 miles on the car. The warranty is not affected because it starts when you purchase the car not from zero miles but from the miles at that time.
It typically starts the day the car is put into service meaning the day is sold to its first owner. The miles on warranty would start at that time as well. If you have a 3 yr/36,000 mile warranty and the day you buy the car it has 458 miles on it then your warranty would expire at 36,458 miles or 3 years from purchase date. Which ever comes first. I have to respectfully disagree with the above answer. The warranty is for 36,000 miles and it runs out at 36,000 miles even if the car had 458 miles on it when sold new for the first time. With that many miles the car would be heavily discounted as a demonstrator. But let's say it had 2 miles on it. The warranty still runs out at 36,000 miles and not 36,002. It is not a warranty to the buyer it is a new car warranty and it starts the instant the car rolls out of the factory.
Whether a car is considered new or used is more a legal distinction than a mileage distinction. A new car is considered used as soon as it is sold by the dealer even if it only has 3 or 4 miles on it. As such, the price of a very low-mileage used vehicle is substantial less than a new vehicle which is why I would never buy a new vehicle.
I have been in the car business a good while and I have seen different examples of this I saw a dealer i used to work for sell a vehicle which was an executive demo with 43000km on it for almost new price and it was listed as a brand new car general rule of thumb if it's less than a year old with less than 10000km or in your case miles it can still be sold as a new car but at a heavily discounted price in comparison to the new price
New car dealers do not send "unsold" units to auctions. New cars are sold though dealer networks with typical assistance coming from the manufacturer in the form of rebates and dealer incentives allowing for deep discounts. The only new cars that are sold at auction are ones that have been damaged then repaired. They are titled first then sold as a used car.
If the vehicle has never been registered (regardless of how many miles are on it), the vehicle is legally considered new. Once it has been registered, it's legally a used car. Demos are new cars that have been driven by the car dealer as test-drive vehicles. They will sport 'dealer' plates. Often they are used by a salesperson as a their personal vehicle and can have hundreds to several thousand miles on them. So, it's not the mileage; it's the registration.
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