What is a test drive agreement?
A test drive agreement is a short form a dealer or private seller asks a prospective buyer to sign before driving a vehicle. It records who drove, which vehicle, when, and on what terms — so if there's a scrape, a speeding ticket or a late return, there's a signed record of who is responsible.
This template records the vehicle, registration, VIN and odometer, any existing damage noted before the drive, the date, start time and return time, whether the drive is accompanied, and an optional route or area. The driver confirms they hold a valid licence (number, issuer and expiry) and agrees to a copy being taken to verify it. They promise to drive carefully, not drive impaired or on a hand-held phone, not let anyone else drive, not tow, race or go off-road, keep to the route and return on time, and call the seller straight away after any incident. You choose whether the seller's or the driver's insurance covers the drive, and can set a maximum the driver pays towards an insured loss. The driver pays fines, tolls and congestion charges, and the drive creates no obligation to buy.
- Best for
- Car dealers, private sellers, motorcycle and van sales
- Signed by
- The driver and the seller, before the drive
- Insurance
- The seller's motor insurance or the driver's own — you choose
- Length
- About 2 pages, initialled on every page
When to Use a test drive agreement
- A used-car dealer letting a customer take a car out alone
- A private seller meeting a buyer from an online listing
- A motorcycle dealer arranging a test ride
- A van or commercial vehicle sale where the buyer tests it loaded
- The seller of a classic or high-value car who wants terms agreed before handing over the keys
What You Fill In
22 blanks, then the name and email of each person who signs: seller, driver.
1 The parties
- Seller (dealer or private seller)*
- Seller phone*
2 The driver
- Driver's full name*
- Driver's address*
- Driver's phone
- Driving licence number*
- Licence issued by*
- Licence expiry date*
3 The vehicle
- Vehicle (year, make, model, colour)*
- Registration or licence plate*
- VIN
- Odometer at start
- Existing damage
4 The test drive
- Date of the test drive*
- Start time*
- Return by*
- The drive is* accompanied by the Seller or the Seller's representative · unaccompanied
- Route or area
5 Insurance and damage
- Who insures the drive* the Seller's motor insurance · the Driver's own motor insurance
- Currency*
- Driver pays damage up to
- Governing law*
6 Who signs
- Seller signature and date, job title, initials on every page · The dealer or private seller. A dealer's salesperson signs with their job title.
- Driver signature and date, initials on every page · The person who will drive the vehicle.
What the test drive agreement Covers
- The vehicle and the drive
- Driving licence
- The Driver's promises
- Insurance
- Damage, fines and tolls
- No obligation to buy
- General
Using the test drive agreement, step by step
1 Check the licence
Look at the driver's licence in person and enter its number, issuer and expiry date. The driver confirms it isn't suspended and agrees you may take a copy to verify it.
2 Record the vehicle and its condition
Enter the vehicle, plate, VIN and odometer, then walk around it together and note any existing damage. If nothing is noted, the agreement records that you both saw none.
3 Set the drive
Enter the date, start time and return time, choose accompanied or unaccompanied, and add a route or area if you want limits — for example, local roads within 20 miles.
4 Confirm insurance and sign
Choose whose insurance covers the drive and any maximum the driver pays towards an insured loss. Send it to the driver's phone to sign on the spot, then countersign.
Tips Before You Send It
- Check with the insurer before the drive that it actually covers this driver in this vehicle — policies differ a lot.
- Take photos of the vehicle before and after the drive and keep them with the signed agreement.
- Keep the driver's licence copy only as long as you need it, and store it securely — the agreement promises this.
- For an unaccompanied drive, set a clear return time and route. The seller can end the drive at any time.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Test drive agreement: frequently asked questions
Who pays if the car is damaged on a test drive?
Under this agreement the driver is responsible for damage caused by careless driving or breach of the agreement, to the extent insurance doesn't cover it, and pays up to the amount you set (such as the excess or deductible) towards an insured loss. They aren't responsible for existing damage, normal wear or mechanical failure they didn't cause.
Who pays speeding or parking tickets from a test drive?
The driver pays fines, penalties, tolls and congestion charges incurred during the drive, and agrees the seller may give their details to the authority so the notice can be transferred.
Does signing oblige the driver to buy?
No. The agreement says the test drive doesn't oblige either side to buy or sell, and the vehicle stays the seller's property.
Is an electronically signed test drive agreement valid?
Electronic signatures are generally valid for ordinary agreements like this in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada. VergeHR keeps an audit trail and a Certificate of Completion with the signed PDF.