Demo cars or dealer demonstrators sound too good to be true. New cars with hardly any kilometres on the clock at much cheaper prices? Sign me up!
But before you find one of these barely driven immaculately detailed vehicles, let’s learn a little more about them. There are plenty of dealer demonstrators out there. You just need to know when to look for one, what to ask for, and what to pay. A demo car might be the new-car bargain you’re looking for. Of course, as always when buying from dealers, you’ll want to make sure you’re getting a good deal.
The term demonstrator, demo car, or even dealer used—meaning used by a dealer rather than a used car—applies to a few different vehicles available for purchase. Usually, it refers to the vehicles the dealer staff uses to take keen car hunters out for test drives and occasionally for personal use.
Dealers often encourage their showroom staff to drive the new cars they’re selling around to familiarise themselves with the product before promoting them. These cars often have fewer kilometres on the odometer because the dealer wants to sell them while they look like brand-new cars.
In most states, a car is no longer regarded as a demonstrator once it has more than 5000km on the odometer, which is another incentive for dealers—more than this, it is viewed as a used car.
When buying a demo car, you might encounter vehicles with very few kilometres on them, perhaps fewer than 50km because they are more showroom demonstrators—cars that have barely moved but have spent time on the dealer floor ready for buyers to sit in and examine.
As manufacturers chase sales targets, they can become desperate to increase monthly, quarterly, and end-of-year dealer bonuses. Cash incentives are sometimes offered on the final days of the month, which is why this is a great time to go car shopping (and the EOFY weeks are the best of all).
To get an extra $2000 off a $30000 car, the dealer must agree to take a large allocation of vehicles and declare them as sold—even if no customers have bought them. Dealers increasingly refer to these vehicles as demo models or undriven demonstrators, which sounds slightly contradictory. On conservative estimates, at least 10 percent of cars reported as sold in a given month are still brand-new in dealer stock.
Generally, a dealer’s contract with the manufacturer requires them to run a minimum fleet of registered demo cars with a selection of the most popular models that punters might want to test drive. The manufacturer or importer gives dealers a specific bonus or contribution to run each demo, usually $350-$1500 on cars priced between $15000 and $50000.
As such, the dealer is in an excellent position to be able to sell you these near-new cars at a more competitive price than a freshly wrapped example from out the back. Another bonus is that you can choose the car you will buy and drive it away on the day.
It’s difficult to say how much of a discount you’ll get. Still, you should ask plenty of questions to establish exactly what you’re buying and compare the prices at several dealerships to ensure you get a good deal. Just because a car has a big red “Demo” sticker on it doesn’t automatically equate to a bargain and you still need to be wary. Check the vehicle’s registration date and year model to ensure you’re getting a near-new car at a reasonable price.
When a brand-new model launches, dealer demos start their working lives. The best time to swoop is two to three months later when the car is nearing the end of its run. Most dealers keep a car for at least 45 days to secure the demo bonus. However, they want to clear it within 60 days to ensure it’s still sold with plenty of registration and warranty coverage.
Buying a demo model makes financial sense. You’re getting a low-mileage example of the car you want at a bargain price and the only previous owner is the dealer.
Before you buy a demonstrator, ask the dealer when it was registered and when the factory warranty started. If it is unregistered, ensure the new-car warranty starts on the day you take delivery—the first day of registration.
We have cars for every budget. If a demo model is out of range for you just now, browse our cars under $10,000. We have lots of vehicles available for under $10,000 and under $5,000.
Whether you need a car right now or are thinking about buying one for yourself or your child in the future, Tony Lahood Motors has you covered with an extensive range of the best used cars in Sydney. We also offer great finance options.
Head down to one of our car yards in Croydon or Lidcombe and browse through our range of used cars or contact our team for expert advice and old-fashioned customer service.
