Buying a Demo Car out of Warranty

Platinumtelecom on 03/05/2020 - 23:58

I need a new car and currently bargain hunting for a new car.

I saw a Demo vehicle with 300kms from 2017. I think it’s unusual for a dealership to still have a car from 3yrs ago. The price advertised is unrealistic, in fact I can get at 2019 cheaper.

The vehicle is now out of manufacturer warranty as it was registered as a demo 3yrs ago.

To make it worth it and make it a bargain, it would need to be at least $8000 cheaper.

Do you guys think I am just wasting my time to try and get them to agree to drop the price by $8k?

Would you buy a “brand new” vehicle from 2017 out of warranty?

Automotive

Comments

  • Hybroid on 04/05/2020 - 00:09
    +2

    $8,000 doesn't feel like enough of a discount for a car that's 3 years old, out of warranty and with a sticker price "higher than a 2019 model". Something doesn't add up here.

    Either case, I wouldn't buy a just-out-of-warranty car unless it's a deep discount or they offer an extended warranty which all dealership should be able to.

    Also depends what it is, if it's a basic mechanical car with no real electronics and little to go wrong for warranty coverage then fine. You do get some mechanical cover anyway. If it's a tech-filled luxury car, then no chance. Not worth the repair risk for few grand saving.

    • Platinumtelecom on 04/05/2020 - 00:12

      Yes the extended warranty is an option. They would have to include this too.
      I think they will decline my offer and wait for someone who is willing to pay a lot more.

      • Hybroid on 04/05/2020 - 00:12
        +3

        Find out tomorrow morning. Move on if they do.

      • vinni9284 on 04/05/2020 - 11:48

        The extended warranty is basically from an external insurance company.
        Like many insurance companies, they don't really like to pay out if something goes wrong. Plus, you are stuck servicing it at the dealer (pay dealers loyalty tax), and insurances usually pay partially and not whole if something goes wrong.
        Usually costs around ~ $1500 for 2 years
        Read the T&C's/PDS if you decide to opt for it.

  • bdl on 04/05/2020 - 00:51

    A three year old demo?! Is it a Holden dealer?

    • [Deactivated] on 04/05/2020 - 08:34
      +1

      My guess would be Peugeot, they have some 2017 models on carsales listed as near new demo.

  • thatonethere on 04/05/2020 - 07:53

    Might be one of the service courtesy cars you get when you car is in for repairs. Still you are already not comfortable so move on

    • Platinumtelecom on 04/05/2020 - 08:10

      Could be but I would imagine it would have more than 350kms.
      I am confortable if I get a great deal on it. Going this morning so will report back.

  • AdosHouse on 04/05/2020 - 09:08

    When I bought my Hyundai demo, they informed me that the new car warranty started when I purchased the car, not when it was registered. Apparently it was a recent change when I got it (2 years ago).

    • modsec802 on 04/05/2020 - 09:16

      Different car manufacturers have different rules. Subaru start at when it was first registered for demos.

      • AdosHouse on 04/05/2020 - 09:17
        +1

        From what I understand, that is the norm.

      • spackbace on 04/05/2020 - 11:20
        +2

        That's incorrect, ACCC came in on this a few years ago. Warranty starts when it goes into the new owner's name.

        Capped price servicing, however, starts when it's registered

        • ajm on 04/05/2020 - 12:09

          Are you sure?

          • spackbace on 04/05/2020 - 12:11
            +1

            @ajm: Yep

            Consumer Protection is reminding buyers of demonstration vehicles that they are entitled to the full term of the manufacturer’s warranty in terms of time, and the clock only starts ticking from the date of purchase.

            The warranty on a demonstration vehicle is only affected in terms of distance travelled, with the odometer reading at the time of purchase allowed to be deducted.

            For example, a 5 year warranty is effective for 5 years from the date of purchase. A warranty of 100,000km would become 100,000km minus, let’s say, 5,000km on the odometer of the demo vehicle.

            • ajm on 04/05/2020 - 12:11

              @spackbace: That's WA Consumer Protection

              Pretty sure it varies from State to State

              From ACCC website : https://www.accc.gov.au/system/files/1449_ACL%20Motor%20vehi… (2018)

              Warranty start date
              You need to be clear about the date that
              your warranty commences, particularly in
              circumstances where a sale is recorded,
              or a vehicle is registered or otherwise
              in use before it has been purchased
              by a consumer. This can be the case
              in instances such as the use of and
              subsequent sale of demonstrator vehicles
              and can cause a vehicle’s warranty
              to commence before the vehicle is
              purchased by a consumer. If the vehicle’s
              warranty starts before the consumer buys
              the vehicle, you should disclose this to the
              consumer at the time of purchase.

  • modsec802 on 04/05/2020 - 09:15
    +1

    My guess is Peugeot or Citroen which makes buying it out of warranty even more insane

    • Platinumtelecom on 04/05/2020 - 10:01

      Renault

      • Bid Sniper on 04/05/2020 - 10:53

        LOL Id look for another car, reason why I car rotted on the lot for over 3 years, on the top manufactures you need a factory warrenty for.

        Look at Kia cerato GT, 7 year warranty, starting from the day you take it. Peace of mind.

      • josho9 on 04/05/2020 - 10:55

        Run away.

      • brendanm on 04/05/2020 - 12:18
        +2

        Lol, out of warranty Renault that they haven't been able to move for 3 years, what a stellar purchase.

  • RockyRaccoon on 04/05/2020 - 10:57

    Its a USED car PERIOD!!!!!

    Forget what the dealer says. Who would drive at 300K km car as a demo.

    Dealer - here drive this old demo to see how well our new cars stand up?
    Customer - Na I want to drive a 10 year old demo to see how THAT drives

    Yeah…..

    • Platinumtelecom on 04/05/2020 - 10:59
      +1

      300kms not 300,000kms

      • RockyRaccoon on 04/05/2020 - 11:00

        Yeah sorry I made a typo and you replied before I could fix. Regardless of Kms (and are they real) why bother

        Point is its not a demo (no one demos a 3 year old car to any client)

        Its more likely a Demo(n) that no one would buy for the past 3 years

        EDIT. BTW with extended warranty, if thats not factory/distributor backed up, dont bother, if the dealer isnt there in 6 months you are SOL

  • xuqi on 04/05/2020 - 11:05
    +1

    Renault's comes with 5 years warranty.

    The car may have been involved in an accident which would invalidate it's warranty (That's how Renault rolls - They'll use any old excuse to invalidate 'new' car warranty - personal experience)..

    Move on and don't bother with them.

  • Sterio on 04/05/2020 - 11:27
    +1

    Rule No 1 - Never buy a French car
    Rule No.2 - Refer to Rule No.1

  • spackbace on 04/05/2020 - 11:28

    Guessing it's a Renault van for the courier work?

    If so, or if you plan to use it for courier work, know that any standard warranty won't apply and you'll be subject to the 'commercial use' warranty, which can be around 160,000kms (not unlimited), depending on brand.

    And yes, the warranty starts when it goes into your name, unless the car has been "on-sold" to the dealership, or is actually a "manufacturer demo" (ie press car, or some employees car at HO). Both of the latter options have already been put in someone's name and the warranty has started

  • Youfah Mizzum on 04/05/2020 - 12:13

    At the risk of getting flamed, I own a Renault and love it. Never given me any trouble. It's about 11 years old & have had it since new. Would buy again but this car is so good I plan to keep it for another 11 years!
    I do my own simple servicing (the oil filter is a bugger to access, but I can live with that) and go an expert Renault mechanic for the more complicated stuff.

  • Euphemistic on 04/05/2020 - 12:16

    If you pay the going rate for a 3yo used car for a 3yo demo what’s the problem? If they are trying to sell it dearer than a 2019 ‘they’re deamin’

  • Randxyz123 on 04/05/2020 - 12:22
    -2

    I don’t see how they can advertise it as a “demo” unless they made a typo in the ad. I’d consider a 2017 car used.

  • Melb69 on 04/05/2020 - 18:31

    Ate you sure it's out of dealer warranty. If the dealer is the only registered name then they should still offer the demo car to you for the full warranty period given you will be the first actual owner. Bargain hard given how hold it is, buy low Kms on your side.

    • Platinumtelecom on 04/05/2020 - 18:45

      Alright so I went in this morning. I was presented with a car full of dust on the outside!
      Turns out it is 2018 and still has manufacturer warranty. It has 1500kms.

      Renault Kangoo… https://www.carsales.com.au/cars/details/2017-Renault-Kangoo…

      I offered $18,000 and they would not take anything less than $22,000! Crazy

      • Melb69 on 04/05/2020 - 18:54

        Best to stay away from Renault anyway.

      • pegaxs on 04/05/2020 - 23:08

        I offered $18,000 and they would not take anything less than $22,000! Crazy

        And that’s why it has sat there for 3 years and will continue to sit there for another 3…

        Had something similar to this today. Rang a dealer about an absurdly priced vehicle in the possibility that it was a listing error. It has been on their lot for over 90 days and would be burning up rego/finance/lot space. I told him that I am looking to buy, but that two other dealers near them had the same vehicle at $7,000 less then theirs… his response… “well, why did you call us if their deals were better.”

        I just laughed and hung on him. Obviously not interested. The downturn doesn’t seem to be affecting them.

        • Platinumtelecom on 04/05/2020 - 23:17

          They just wait in the hope that they get a buyer who may not be informed. Honestly I visited 3 dealerships today. I have made some very reasonable offers.
          A vehicle that was $29,990, I have made an offer at $29,000 and asked to include the cargo barrier. They declined and did not even counter offer. I was ready to pay in full today.

          Dealerships are obviously not struggling…or they are and can’t afford any discounts at all….

          • pegaxs on 05/05/2020 - 08:45

            @Platinumtelecom: I think some dealers are in a decaying orbit and about to implode. They are haemorrhaging money through not selling and burning it all on stock that is burning a hole in their bottom line.

            They see that the only way to keep afloat is to keep adding that shortfall back onto the price of the vehicle, so, as the car costs them more from sitting, they have less margin, the less margin, the more expensive the vehicle, the more expensive the vehicle, the more expensive it is, the less likely people are to buy it, and the cycle repeats.

            The local dealer near me that had a car I was interested in, when I asked about doing a deal, has moved to a “fixed price” used car model, where “the haggling has been done for you”.

            When I asked about a deal on a car, they just said that the window sticker price IS their best price. I said that that sales model is ridiculous and unsustainable considering the other dealers around town had the same or similar vehicles for thousands less. His attitude was, “well, you should be buying from them, but you’re still standing in our yard looking at our vehicles…” to which I replied “because you’re closer and I use you’re dealership to test drive vehicles, and if I like how the vehicles ride and feel, then I go to them to actually buy. You’re dealership provides me with test mules, nothing more.”

            This is the same dealership that has Holden as a franchise and when the fire sale was on, refused to offer anything less than RRP on anything Holden.

          • RockyRaccoon on 05/05/2020 - 17:45

            @Platinumtelecom: Its a warning if they are that arrogant when selling to you, the service department will probably be worse.

      • brendanm on 05/05/2020 - 16:37

        Kangoo, why? Buy an old HiAce with 300k km on it and it'll still last longer.

        • Platinumtelecom on 05/05/2020 - 16:48

          Do Kangoos have a reputation not to last? I’ve always heard good things about it.

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