Demonstrator Cars – To Buy Or Not To Buy?

One can argue back and forth about the savings realized in buying a demonstrator car-one which has been used by the dealership or the car company itself for test drives and/or getting staff around. Car purchase contracts always make a distinction between new, used and demonstrator cars. Dealer sales people will always insist that a demonstrator is not a true used car, but, let's see what you get.

With a new car, the warranty coverage begins on the date you drive the car off the dealers's lot. Usually the vehicle has travelled less than 500 km (one has to make allowances for travel in cases where the car has been obtained from another dealership, for one reason or another). This new automobile has never been registered in any other name (when in doubt, one can ask to see the manufacturer's new car registration form, which must be handed in to the provincial auto licensing authorities the first time a vehicle is registered for the road).

A demonstrator has been previously registered for the road. Its warranty took effect at the time of registration, and it will typically have anywhere between a couple to twelve or fifteen thousand kilometres on the odometer. Too often, the paint is blemished and the carpets dirtied just like on any other car which has been on the road for a period of time. Unlike a used car of similar vintage, it's likely that the demonstrator has had a number of drivers-not all of whom have exercised care during the break-in period.

In other words, the demonstrator is a used car like any other in most respects except one: the dealer is selling the 'demo' from the new car sales office for a price closer to that of the equivalent new model than the used car price listing. This means that once bought, the demonstrator will depreciate more quickly in the first few kilometres than an identical car bought at the official used car price.

There's another matter to consider here: just about every car maker offers some sort of discount, rebate or special financing terms on its new cars during the course of a year. In most cases, these specials will not apply to a demonstrator vehicle. Therefore, if it's a new car one is after, it may very well be best to go for the real thing because the actual money spent over the term of ownership may not be significantly more for a new car than a demonstrator.

Besides, when buying new, you, and not some unknown previous driver, have the privilege of having first option on staining the upholstery or backing into the telephone pole across the street.

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Posted under Cars

This post was written by Alex Thosh on March 3, 2010

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