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- how old a car is acceptable? (2 months?)
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Depending on the manufacturer, this may be anywhere between a month to 6 months. However and in the worst case scenario, it should be a Y2007 build.
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- what all problems other than dents and paint job
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Thats pretty much it and you wont really need to do any mechanical checks. Just check the body for any damage or repair jobs.
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- Is it possible to get a short test drive?
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Yes but it depends on your dealership policies. I have taken some of my cars for tests before the registration.
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Suppose I feel that the vehicle is not upto the mark, OR in short I'm not satisfied with it, do I have the final word in demanding "I want another vehicle!"
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If there is visible damage / repair job to the vehicle, dont sign on the registration papers. Insist on a different car allocation.
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Is it possible that the vehicle be tuned for ideal performance in terms of FE/ smoother gear shifts by the mechanics at the time of assembling/ just before delivery.
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Not really. The dealership would "tune" primarily over the first service.