What You Need to Know About Buying a Secondhand Demo Car

Car dealers use demo cars so customers can test-drive a make and model of car. Demos are used when new cars are not readily available to drive. Salespeople and managers at the dealer also use demo cars for transportation to and from work. When the demos have been used and placed on sale, they usually feature a very small amount of mileage. Usually, the cars are integrated into a dealership’s inventory.

Choosing to Buy a Demo

If you want to buy or lease second hand cars in Canberra, you cannot go wrong by choosing a demo car, provided that the price is right. The demo car has the low-price appeal of an older car and the features associated with new car purchases. You can also find out a little about the car’s history when you elect to buy a demo car.

Before you negotiate, you need to learn more about the demo’s history or car history report. Read it over carefully. The best-looking cars can quickly turn into eyesores if you read a car’s vehicle history report. You might miss something significant if you do not review a car’s history. For instance, you may find that the car was used for high-speed driving or had several mechanical problems.

What Are the Terms of the Warranty?

Check the warranty of a demo or used car that you buy. Ask the sales representative to show proof of the warranty’s beginning date, also known as the in-service date. Ask if the warranty can be extended or if you can buy the car at a lower purchase price.

Obtain a price quote for the demo and compare it with the cost of a similar new vehicle. By taking this step, you can see if you are really getting a better deal by choosing the demo. You can do this more easily when you take the time to go online.

When you choose a demo that is in good condition over a new model car, it has already depreciated. Therefore, buying the demo is a good buy as you can subtract the depreciation from the purchase price. That is better than paying full price and assuming the depreciation as soon as you drive the auto off the lot.

After all, you will experience wear and tear pretty quickly when you buy a new auto. That is why you need to learn to save where you can. Shopping and comparing prices online can make you a better car shopper and give you an edge when it comes to negotiating a car deal. Learn about the car’s history, practice comparison shopping, and take your time when buying a demo. Doing so will bring you rewards both as a driver and budget shopper.

Calculate the TMV

Remember too that there is not specific way to price a demo. However, you can get a good idea by calculating the true market value (TMV) for an auto first. The TMV helps you determine what other car buyers are paying for the same vehicle. This is an ideal tool to use for determining a price or setting a price if you are a private seller.

Apply new car rebates or incentives for a new car or an auto that is similar to the demo. Deduct about 20 cents for each kilometre the car has been driven. Sometimes you will find that if a new car offers rebates, the price is about the same.