March 30, 2023


General Blog

Why you shouldn’t disregard demo cars

Choosing to purchase a demo car over a brand new one from the dealership is a great loophole in getting one of the latest models at a fraction of the price. We will go into more detail below on the various benefits and things to consider when purchasing a demo car, allowing you to make a more informed decision.

What is a demo car?

Demonstrator or ‘demo’ cars are stock at the dealership that are used for display, test drives or service loan cars. Demo cars frequently rotate, to keep up to date with the latest models. This gives buyers the opportunity to purchase the demo car from the dealership at a reduced price for what it would sell as new.

What are the different types of demo cars available?

A dealership may have one or more of the following demo car options available:

The demo runout

When a new model of car is introduced on the market, the dealership will have to get rid of it in a timely manner. If purchasing an older model that is no longer made is no issue for you, you can save big on runout cars, especially if it’s a demo runout car.

The dealer demo

These are the cars which prospective buyers take out for test drives. These are the most common types of demo car.

The courtesy demo

These cars are used as courtesy vehicles when customers have booked their current car in for servicing or repairs at the dealership. They may have slightly more kilometres on the clock than other demo cars.

The factory demo

These cars are often just used for display purposes, for exhibitions, commercials or events. They are sold as demo vehicles once they start showing signs of wear and tear, and/or a new model comes on the market. They are likely to have less kilometres on the clock.

The condition of the demo car and the amount of kilometers accrued on the odometer will determine the price it is sold for. You may be in for a bargain if you are willing to overlook some signs of wear and tear.

Pros of buying a demo car

  • Demo cars are substantially cheaper, often by thousands of dollars, than a new car of the same model. If you have a budget in mind, this is a win.
  • The car will be kept in optimal condition, both internally and externally. As the demo car is used to sell new models, it is of the dealership’s best interest to keep it in tip top shape.
  • Demo cars often have higher specs than the standard models, with additional features which are considered appealing selling points to the buyer. By buying a demo car you may be getting extra features for no extra cost.
  • You can drive away immediately in your new car. There are no waiting times to get a car ordered in, as a demo car will already be at the dealership ready to go.

Things to weigh up

  • Less choice is available. You are much more limited with which car, colour and model you can purchase if you are choosing a demo car, you have to be open to purchasing the select few available at the dealership at the time.
  • It will not be in ‘brand new’ condition. As a demo car has been used for test drives, or as a courtesy vehicle it may have a few signs of wear and tear. However the wear and tear on demo cars is significantly less than that on second hand cars, which are often many years old.
  • It will have accumulated kilometres on the odometer. As the demo car has been previously driven, it may have a few thousand kilometres already on the clock. This is not super significant, but it is worth having knowledge of beforehand.
  • The tires may need replacing. Depending on how much the demo car has been driven, it may need new tires so it is in optimal driving condition for you.

Some handy hints

Do your research

A car, demo or not, is a large investment for anyone. Do your research on the make and model beforehand to see if it’s right for you, and that it will meet your driving needs. It is also a good idea to check what the car sells for new, so you can weigh up whether you are getting a good deal or not.

Have an understanding of the car’s history

It is worth finding out what the demo car was used for. It is also good to know how long the car has been used as a demo.

Have a thorough check of the car’s condition

The wear and tear of a demo car can vary dramatically from model to model, depending on how long the car has been a demo and in what context. You want to check all the features of the car to see if they are in working order, and if any repairs or part replacements are required. Repairs and replacements can add extra costs, so it is good to have an understanding of the car’s condition up front.

Consider negotiating the offered price

Often demo cars need to be shifted from the dealership as soon as possible. If you feel like you can get a better price, there is no harm in asking the question.

In summary

If you are wanting a newer model in relatively good condition, and more bang for your buck, it is really worth considering purchasing a demo car. Head into a trusted car dealership such as Peugeot Perth to check out your options available today.