Buying a Demo Car – Some Pros and Cons

Buying a car can be one of the bigger financial purchases of your life. Buying a demo car gives you the opportunity to purchase a new car for a much cheaper price. You could get a new car at a used-car price, by choosing the right demonstrator car, at the right time.

This blog may help you choose the right demo car in Australia, give you some tips for buying a demo car and highlight key things to look out for.

What is a demo car?

A “demo model car” or a “demonstrator vehicle” is often used by a dealership for potential buyers to test drive. There is also a chance that the brand executives and the sales team may use the demo models for promotional or personal use, as they are often encouraged to get the feel of the car to know what they are selling.

While some kilometres may have accumulated on the odometer, the car’s history is generally yet to be written!

How many kilometres should a demo vehicle have run?

Most demonstrator models will generally have low kilometres on the odometer, as it may have only served as a display car. In Australia, a demonstrator car with less than 5,000 km on the odometer is generally considered acceptable. Some may argue that the demo car is a used vehicle (albeit in mint condition, still under new car warranty coverage). But demo cars can sometimes see you receive a discount of up to $3,000–$4,000 off the original price of the car, depending on what demo car you are buying and where you are buying it from.

Is it worth buying a demo car?

This age-old question does not have a clear answer. But choosing the right demo car at the right time can sometimes benefit you and can possibly save you money by getting a discounted price. Although it may not feel as fresh as an unwrapped vehicle, it generally has very few kilometres on the odometer and has most likely been well maintained by a car dealer.

When demo car buying, the excellent maintenance will often mean you’re getting a bargain price — and sometimes getting a near-new car for the same price as a used car! If you aim to save some money and buy a car in near-new condition, this option might just help you find the good deal you are looking for.

When is a demo vehicle for sale?

If a brand-new model of a vehicle is launched, dealers will most likely want to shuffle the current stock of demo vehicles (the demo runout model) to make space for the new models. Two to three months after the launch can usually be a good time to look into buying a demo car for sale to get the best value.

So how do you know if a demo car is right for you?

We hope our list of Pros and Cons of what might be involved with looking to buy a demo car, can help you make an informed decision.

Pros

Cheaper Price

Demo models are often cheaper than a brand-new version of the same model. You can usually get a great deal by negotiating with the car dealer for the best price they can offer you for the demo car.

In Top Condition

In most cases, demonstrator cars are kept in excellent and near-new condition. A dealer is unlikely to display a vehicle with any visible damage. The cars are generally well maintained to help entice prospective buyers, which means, you’re essentially buying a near brand new car close to the price of a used one, likely to be maintained with the utmost care and condition.

Drive away

One of the advantages of buying a demo car can be that they’re usually ready to be taken home. There’s generally no wait for your vehicle to arrive from the supplier. As soon as it’s paid for, you could drive your demo car away from the dealers.

More for Less

Dealers may use a demo car model with advanced features or accessories for demonstrative and sales purposes, which would otherwise be missing in the basic model. If you are lucky, you could drive away with advanced features or new accessories such as leather seats, sunroof, or any other accessory added to the vehicle for a reduced price.

Again, these advanced features can be used to entice prospective buyers to buy the brand-new version of that model and get the appropriate extras. You may find yourself getting a demo car with advanced features and accessories but for the price of the basic model or potentially even less!

Cons

Higher mileage

Many prospective drivers may have taken the demo car for a test drive. As such, the odometer will record every kilometre covered by these drivers. Considering an average Australian car generally travels approximately 15,000 kilometres a year, you may have to decide whether buying a demo car with kilometres already on the odometer is the best option for you. Having said that, the kilometres clocked up on demo vehicles is still likely to be very low mileage compared to used cars.

Less variety

Dealers may only have one demo car for a particular make and model. Unlike with a brand-new car where you can generally choose the colour and extra features that you want, you may have to settle for the colour and features of the available demo car. This may also include the fuel type. You may have to weigh the benefits to find the best option for you.

Near-new/used condition

Not all demo cars are the same — each one will have been used for slightly different purposes and many prospective buyers may have driven the vehicle to test it and get a feel for it before making their new car purchase. Keep in mind the car may have experienced a few bad drivers in the past. It’s advisable to get a routine check done for its engines, brakes, tyres, and any other parts that your mechanic recommends, before you go ahead and buy it. Make sure you seek independent professional advice on the vehicle before signing any contracts.

In summary

A couple of things you may like to keep in mind when weighing up new cars vs used cars vs demo cars:

• Make sure to check the car has a satisfactory warranty;
• Do your research on the car, its make, and check that the price you are being offered is fair and reasonable;
• Always try to negotiate with the dealer (they most likely want to move the car off their lot as fast as possible); and
• Sleep on it — you are not expected to make the decision right on the spot, so take some time to seek independent advice and weigh the pros and cons of buying the demo car before you make a decision.

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.