Can a demo car be sold as new?

Asked By: Chu Palmeiro | Last Updated: 28th April, 2020
Category: automotive auto buying and selling
4.6/5 (153 Views . 45 Votes)
Demo cars are new cars that have been driven by employees, family members, or customers of a the dealership for a few months. Since they were never sold, they are legally considered new, so they qualify for all rebates, special financing, and the new car warranty.

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Besides, is it OK to buy a demo car?

Demo or Program Cars Can Be a Good Deal — Under the Right Conditions. You're on the dealer lot or website and come across an intriguing used car. It is the same model year as what's currently available new, yet it is being sold at a discount for thousands less than the MSRP of a new one.

Furthermore, how do you buy a demo car? Follow these steps to make sure you're actually getting a fair deal on your demo car.

  1. Step 1: Research the car's history.
  2. Step 2: Check the car's warranty.
  3. Step 3: Do it again with more demo cars.
  4. Step 4: Find out how much your options are actually worth.
  5. Step 5: Inspect for damages.
  6. Step 6: Negotiate the price and financing.

Keeping this in consideration, how many miles can a car have and still be sold as new?

So, the short answer to your question is: yes, a car that has been driven 1,100 miles may indeed still be considered a "new" car. However, while a dealer can represent that cars which have been driven as employee demos are "new," the dealer cannot misrepresent the actual condition of the vehicle.

Are ex demo cars worth buying?

Buying an ex-demo car can be a cheaper way to get yourself a brand new car, for a lower price than you'd usually expect to pay. This is because ex-demo cars are vehicles that dealerships have previously used as display and test drive models for their showrooms.

30 Related Question Answers Found

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman
  • “I really love this car”
  • “I don't know that much about cars”
  • “My trade-in is outside”
  • “I don't want to get taken to the cleaners”
  • “My credit isn't that good”
  • “I'm paying cash”
  • “I need to buy a car today”
  • “I need a monthly payment under $350”

What is the best month to buy a new car?

The months of October, November and December are the best time of year to buy a car. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. And all three goals begin to come together late in the year.

Is a demo considered a new car?

A demonstrator car (or demo) is a new car that has been driven by the dealership's salesmen, managers or executives but has never been registered with the state. A used car is any car that has been registered. Rule Of Thumb: Once a vehicle has been registered, it is legally considered used.

How much can you negotiate on a new car?

Focus any negotiation on that dealer cost. For an average car, 2% above the dealer's invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.

How can I check the value of my car?

Use Autotrader's used car valuation tool to find the Kelley Blue Book® Value of the car you'd like to sell or buy.
  1. * Make. Select a Make.
  2. * Model. Select a Model.
  3. * Trim. Select a Trim.

How many km should a demo car have?

Demos are gently used by staff, but never sold. They usually have anywhere between 8,000 and 12,000 kilometres on them when they get put up for sale, so a sizeable amount gets knocked off the sticker price.

What happens to new cars that are not sold?

This Is What Happens to All of the Cars That Never Get Sold. That means they buy new cars from the manufacturer and sell them at a higher price to make a profit. Therefore, once the dealership buys those cars, they belong to them. They can't just send the unsold ones back to the manufacturer at the end of the year.

How many miles should be on a new car when you buy it?

There's no exact mileage that distinguishes a new car from a used car, but in my opinion, a brand new car should have less than ten miles on it. If your new car comes with 184 miles, you have every right to refuse delivery.

Is 200000 miles alot for a car?

Typically, putting 12,000 to 15,000 miles on your car per year is viewed as “average.” A car that is driven more than that is considered high-mileage. With proper maintenance, cars can have a life expectancy of about 200,000 miles.

How many miles should a car last?

A Car's Life Expectancy
The care you put into your vehicle will determine how many miles can a car last. However, knowing the average mileage you can expect from your vehicle will help you get a sense of its life expectancy. Most modern cars last for an average of around 8 years or 150,000 miles.

How much discount should I get on a demo car?

Generally, you'll want a discount of 25 to 40 cents per mile driven. On a vehicle driven 5,000 miles, this comes out to a discount of between $1,250 and $2,000. Just realize that demo vehicles are not always great deals, and in fact most experts recommend not buying them.

How often do car dealers get new inventory?

Dealership inventory is a massive and complex process, but as a general guideline, most dealerships don't want to keep more than about two months worth of inventory on their lot.

Do dealerships charge for loaner cars?

The 'free' vehicles are actually loaner cars, available when the customer needs service work. Typically, dealerships offer free loaner vehicles if scheduled repairs take more than a day or a part does not arrive on time. Boundbrook Ford in Boundbrook, N.J., contracts with Dollar Rental Car to provide vehicles.

How do I find a dealer demo car?

Where to Find Demo Cars for Sale Near You
  1. Do not Travel Far. You can actually save a lot of money on these types of vehicles even if the warranty period is a little shorter due to the fact they are driven for a few miles.
  2. Look for Local Stores near You with the Yellow Pages.
  3. Search for Nearby Stores over the Web.
  4. Look for Manufacturer Showrooms Nearby.

Can you negotiate the price of a Tesla?

Buying a Tesla
You simply go to, click the model you'd like to buy, configure your vehicle, and place your deposit. In fact, there's no haggling over price at all. Tesla offers no discounts or negotiations. The price you see is the price you pay.

How do you test drive a car without buying it?

Go to the auto dealer and ask to test drive the car. They are usually very happy to let you test drive the car since they are hoping that you will purchase it. The auto dealer will want to ride along with you on your drive.

What is the mean of demo?

demo. A demo is what you give to show how something works. You might give a demo of your fancy new espresso machine to your weekend guests, so they'll know how to use it. Demo is short for demonstrate or demonstration. It can be a verb, as when a tech company demos its new tablet or laptop.