Follow these steps to make sure you’re actually getting a fair deal on your demo car.
Make sure you’re actually getting a demo car by asking the salesperson about how the car was used. You can verify this by doing a quick search of the car’s Vehicle Identification Number (VIN). A VIN check gives you information about the odometer reading, maintenance and repairs, structural damage and more.
You can do this either online for a small fee or through a used car lot. Ask about anything in the history that doesn’t line up with what the salesperson told you.
Also request proof of the car’s in-service date — the day that the warranty begins. Sometimes warranties begin earlier on demo cars, since dealerships are technically using them before making a sale. If the warranty starts early and there isn’t an option to extend it, you can use this as leverage to ask for a lower buying price.
The best way to find a good deal is to compare multiple options — especially from other dealerships. Compare the asking price, financing options and history of different cars before coming up with a short list of potential cars.
Once you’ve narrowed down your choices, do a quick search online to find out how much the car should be going for in your area. You can check the typical price for the car you’re looking for on sites like Edmunds and Kelley Blue Book.
Dealerships typically use demo cars for test drives, which can lead to damages. When you’ve found the car you’re thinking of buying, check it yourself or have it inspected by a third-party expert for any possible damages. If you find damages that are manageable, use this as leverage to negotiate down the price.
Since demo cars fall somewhere between used and new, you might have more wiggle room than you think with the price and financing. Use the research and inspections to work down the price with your dealership. You might also be able to get a better deal on financing by getting preapproved for a car loan from a third-party lender.
The car dealership is where you should head to find a demo vehicle. Check prices on sites like Kelley Blue Book and Edmunds to get an idea of current market prices. These comparisons can give you bargaining power when it comes to negotiating the vehicle price.
Before you figure out your finances and run to pick up a demo vehicle, make sure you understand what you’re buying:
Also called a demonstrator vehicle, this is a car that sales people and executives use at dealerships for personal use or test drives. The can have thousands of miles on them, but are typically in great shape. These are new model cars that usually come with all the bells and whistles from top-range models. And because they aren’t technically “new” — you can save on your purchase.
Pricing a demo car can be tricky. It can vary, depending on the model, make and vehicle — as well as any damages and the number of miles it’s been driven. Typically they cost less than a new car but more than a used car.
You can do this by following these steps:
Demo cars can help you save but it’s not always a great choice. Here’s when you might and might not to buy a demo car:
Discount on each demo car can vary based on its features, what it was used for and how many miles it has. Compare the new vehicle sticker price to see how much you’re saving with the demo vehicle.
Demo cars can be a great option and help you save when purchasing your next vehicle, but they might not be the right choice for everyone, so be sure to look around and compare your options before jumping in the driver’s seat.
Demo vehicles are relatively new, but some may have been driven off road or have more miles on them. Inspecting the vehicle for any signs of wear and tear is important prior to making your purchase.
If you’re unsure of what to look for, take the vehicle to a mechanic or bring a friend who is car-savvy.
Image source: Shutterstock
Should you lease or buy your next car? Laura Adams breaks down your options.
Is leasing or buying the best option for your next vehicle purchase?
Upstart is now offering auto loan refinancing.
Car loans for borrowers who may not qualify for traditional financing.
This young bank works with dealerships to get you financing.
9 requirements most lenders look for in a car loan applicant.
Could you be eligible for a low APR car loan from this well-known credit union?
Take to the road with an auto loan from a lender that’s dedicated to serving military members and their families.
If you’re in the market for a car don’t miss out on this guide to buy a car, get all the info you need and a range of loans to help you get into your car sooner.
Want to sell your car and pay off your car loan? Here’s what you need to know before you put your vehicle up for sale.