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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.

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Q: How many miles can a car in Kansas have and be sold as new?
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