What is the maximum number of demonstration miles allowed for a vehicle to still be considered new?

A vehicle is classified as "new" under Colorado law as long as it has not exceeded a specific mileage limit, which is designed to ensure that the vehicle still retains its new status for purposes of sale and warranty coverage. The maximum number of demonstration miles allowed for a vehicle to maintain this classification is set at 1500 miles. This threshold helps protect consumers by ensuring they are not purchasing a vehicle that has been excessively used or has gathered wear and tear typical of a pre-owned vehicle.

Understanding this limit is crucial for anyone involved in vehicle sales, as it directly impacts dealership practices and consumer rights. For instance, if a dealer has a vehicle with demonstration miles exceeding this limit, they must disclose that it is no longer considered new, which can affect the vehicle’s resale value and warranty eligibility. This regulation is in place to maintain transparency and uphold consumer protection standards in the automobile industry.