It doesn't matter what the dealer calls it, as long as the price reflects the mileage. If he is charging full price, based on his assertion, go somewhere else.
Legally the dealer is right but morally no. Find another dealer.
I can understand that the dealership would consider it "new" until it had been titled to someone. There may not be any hard and fast "rules" anywhere about that. As a consumer, I would consider it used and want a reasonable discount from a new-car price...no matter what technicality they use to call it new, it still has 5,000 miles on it.Hahahaha!!! Try selling one two months out of the showroom with 5,000 miles on it! Ain't nobody calling it new then!
depends on where you live ,in AZ its when it's first titled!
Just threaten to buy a new one somewhere else, if he wants to charge the new "Sticker" price.