Hi all
I am looking at buying a 'demo'. This particular demo has done 2,000kms (so its not really a demo)
Is there anything I need to look out for?
The car has 90% of its new car warranty remaining, so I assume that any major issues will be taken care of under warranty.
Thanks
Generally, a demo in my opinion is one where it has done 500-1000km
I imagine this one has been used as a loan car etc.
Sure, if dealers actually had demos. I went to quite a number of dealers because a Corolla demo was hard to find. And it wasn't even a demo when I finally found one; it was the salesman's car that was being used as a demo …
I've seen the exact same situation at a Mercedes dealership.
You can't just make your own judgements. Is it actually a demo?
A quick 2 second google yields:
Dealer demos - cars used by dealers for test drives or promotions
Runout models - cars dealers want to sell quickly to make room for the next model
Courtesy demo cars - cars that get loaned to customers who bring their car in for servicing
Factory demos - cars used by the manufacturer at exhibitions and events or in commercials.
So which one is it? If it's got 2000km then it's maybe #3 which is different, and you should be able to negotiate as such …. however in the current market you are out of luck. You'll be paying top dollar for a demo.
considering the shortage of cars, i would be questioning WHY they're getting rid of it
I imagine car dealerships are in the business of selling cars, and in this example, they are selling a car.
If they keep it for longer, it would be hard to sell it as a demo.
Now they have opportunity to sell it for RRP or even higher.
The oncoming recession is hitting the more expensive side of town pretty hard.
The shortages are being resupplied pretty rapidly, also have seen a lot more advertising of cars that are ready to drive away. car sales were steadily going down hill pre-covid and we'll return to that as people start to save up for holidays and pay off their monstrous mortgages.
I think the sub $40k car category will continue to churn on. Everything else will drop significantly.
Especially when we see electric cars in this category.
Is it sold by the new car department, or used cars?
By the used car department.
I am not under any illusion that its a proper demo.
I am happy that it has almost 5 years remaining of its factory warranty
In that case I'd be guessing you're paying more than the price of a new one, plus stamp duty? What car is it?
Not much to look for really besides checking the paintwork, rims/tyres etc
Why wouldn't it have the full warranty?
It's not used, therefore being a demo, and you would be the 1st user, I would expect it to have full warranty, as long as it is serviced under the Ts and Cs?
You wouldn't be the first user as 'demos' are usually registered to the dealership so that you can take them for test drives (legally on the roads). You would be the second registered owner, after the dealership.
Why wouldn't it have the full warranty?
Because warranty starts when the car is first licensed, or (in WA), when a genuine demonstrator is transferred to the new owner.
OP is clearly buying what is essentially a used car, likely a press demonstrator etc
@spackbace: I've been advised to be cautious of buying certain demo models as in some cases they've really been "well tested" by both potential buyers, press, staff (company car) or customers who need a spare car while getting their own serviced.
Does this really happen?
@Kranbone: Genuine demo's get used for almost all of those reasons. Press cars will end up on the used car lot
@spackbace: pre covid, if I bought a vehicle new and then went to resell it a few weeks later, I'd generally get offers at round 20% less what I paid. Why don't demo's have the same deflation in value given what you've confirmed?
Right now dealers started getting a new cars for MY2022 and so they are now giving away their old demos.
I just got my Impreza after a delay of almost 8 months. Worth every cent I paid since much better than Carola and Mazda 3 or Kia Cerato which i tried previous year.
It could be a legit demo. Last dealer I went to was suggesting a 24hr test which could easily rack up 50-100km. Do that once a week and you’ll soon rack up 2000. But then, you’ve said it’s being sold by the used car dept, so it’s obviously been used a little more than they think get can get away with.
Basically it’s a used car with a warranty. Mechanical should be fine, and covered under warranty. It’s the cosmetics that you need to really consider. Scratches, dents, gutter rash on rims etc. just go for t if you are happy with the condition.
Do you need to leave it on the lot for 3 months?
Price vs new
Also drive away today vs wait 9 months for a new one to arrive.
Yep. I just paid ‘too much’ for a car because I don’t want to wait.
I have only ever brought ex-demo cars never had an issue and im on my 3rd one best way to get a 'decent' deal but protect yourself from getting a lemon with manufacturer warranty but save 1000s off the sticker price (down side is you can't be too picky on colour)
However this was all Pre-covid looks like cars have gone crazy expensive - as the last car i purchased ex demo is worth slightly more now 2nd hand then what i paid for it ex-demo
just get the cheapest one you can find, its going to get smashed. every demo derby i have been to has been won by older beat up cars already.
Out of curiosity, are they selling it below RRP? I've seen dealers selling low km/demo cars for WAAAY above RRP eg a RAV4 Cruiser Hybrid with 142kms for $72k (RRP is around $50k)
Anything with a wait list will be at or above RRP. Someone will still buy it.
As opposed to? Demo cars exist to provide an example to people of the car, and test drive it. 2000km isn't that much but depending on the vehicle that may be concerning.
eg: if it's a BMW X5-M then I guarantee you people take it for a test drive and absolutely floor it.