Are demonstrator models good value?

By David Bonnici, 02 Mar 2017 Car Advice

Are demonstrator models good value?

Car dealers often advertise demo models, but what exactly are they and are they that much cheaper than buying a brand new car?

IT SEEMS like a no brainer – why pay full sticker price for new car when you can get a cheaper demo model with few kays on the odometer? Whenever something seems too good to be true it is, so some due diligence is needed if going down the demonstrator path.

What is a demonstrator car?

A lot of demonstrators started life as car-manufacturer company cars driven by executives, or used for photo shoots and TV commercials.

Others, such as dealer demonstrators, have been driven by potential buyers under the watchful eye of sales staff, or for more passive uses such as shopping centre displays.

Then there are the media demonstrators which can get a bit more of a rigorous going over, though often this depends on the type of car – a demo Toyota Yaris is less likely to have its limits tested than say a BMW M3.

The safest bet is to get something with very low mileage so any abuse it may have suffered wasn’t prolonged. Ex-demo models with just a few hundred kays on the clock are common, and they’re all covered by the factory warranty. Note that the warranty period kicks in from the time the car is registered, so a car that’s been on the books for a year may only have two more years of warranty left on it.

Crashes do occasionally happen, and demo models are technically more susceptible to the odd bingle because they’re often driven by people who aren’t used to them. So get them checked for any signs of repairs, just like you would a used car.

new car dealer

Do your homework

As with buying any car the number one rule is to know your subject so you’re comparing apples with apples.

Learn its price before and after on-road costs are added, as well as extras such as metallic paint, sun roof, safety packs and so on. This way you’ll know instantly whether or not it’s a good deal.

Car manufacturer websites let you “build cars” and offer a drive-away price based on spec and features. This is a great place to establish a benchmark.

What prices to expect

Unfortunately this isn’t so straight forward. Similar to getting a bargain price on any car, much depends on timing.

At the very least you want to save a few thousand dollars off the new on-road price, though be mindful that similar deals sometimes appear on brand-new cars, particularly during an end of life model run-out or end of financial year sales.

Also remember that demos can date back to the previous model year, which will give them less resale value than current stock.

Timing is also important. WhichCar’s resident car dealer Trev (not his real name) said some car dealers flogged off demo models to make monthly targets.

“Every time you go to buy these cars it depends where the dealer is at on the day, how their month is going and what the situation is and how desperate they are,” Trev said.

“If they’re trying to hold a bit of margin and make some money they won’t go down but if they just want to clear some stock that’s when you’ll get the deal. So trying to actually put a dollar value on it is very difficult.”

Once you’ve found a car, the buying process is no different to anything else on the lot. Just be sure to be confident but realistic when negotiating.

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