What is a Demo Car?May 22nd, 2019
Demo cars, also known as demonstrator vehicles, are used and sold by just about every OEM dealership you can think of. If you’re in the market for a new or used car in Whitby, you’ll most likely come across a demo car at some point in your search. They are usually priced at an amazing deal, after all it is a new car with a significantly lower cost than the vehicle’s original price tag. It almost sounds too good to be true. Dealerships don’t often make a habit of going out of their way to sell a new car at a much lower price. So the question is, what’s actually going on here?
What is a Demo Car?
Demo cars are new vehicles that the dealership has allowed their employees (usually the executive team) to drive for a short period of time. These executives drive new vehicles for a couple of months; after that the car gets sold as a demo and the employee moves to a new vehicle.
Most demos are kept in excellent condition, since they are usually driven solely by executive members of the dealership’s staff. This means the discount on the vehicle will far outweigh the wear and tear the car might have sustained. More often than not, the only way you can tell that a vehicle was a demo is by looking at the odometer.
Vehicles lose a large portion of their value when they are first driven off the lot. Since the dealership is selling the car after this depreciation has happened, the dealership is absorbing most, if not all, of the initial depreciation. This means you’re avoiding this drop all together as opposed to paying all the depreciation on a new car.
Benefits of Buying a Demo
When they sell a demo, many dealerships take thousands of dollars off the vehicle's original price tag. This means you'll be getting a like-new car highly discounted. The discount a dealership gives depends on the vehicle’s mileage. At most dealerships, a greater discount will be given for demos with more kilometers and/or wear and tear on them than those with fewer kilometers or less wear and tear.
In addition to the discounts a dealership has already put on the vehicle, you’ll also receive further savings on the freight and PDI fees, as dealerships usually don’t pass on these fees to the customer; when buying a new car these are additional fees you would be charged.
The Best of Both Worlds
Since the vehicle has never been sold and is still technically in the dealership’s inventory, it’s still considered new. This means that the car would still qualify for any new car rebates, special financing, or promotions the dealership might be offering.
If the dealership hasn’t registered the vehicle, you’ll be getting the entirety of the manufacturer’s warranty. Even if the car has already been registered with the manufacturer, you’ll still receive the remainder of the manufacturer’s warranty, which with the Nissan Standard Manufacturer Warranty means you’ll likely be able to take advantage of approximately two and a half years or 30 000 km.
Buying a demo is a great option if you’re thinking of buying a car. You’re getting a new car, and all the special financing that comes with a new car, but you’re buying the car as if it was used. You truly are getting the best of both worlds.
At Midway Nissan in Whitby, and all Drive Autogroup dealerships have a wide variety of new, used and even demo vehicles. All our demo cars are extremely well maintained, and we always offer great discounts on them. Our selection of demo vehicles can be found by clicking the button below.
At all Drive Autogroup dealerships, we also offer our Shield Program at no additional cost, which applies to our demo vehicles as well as our selection of used cars. The Shield program offers a one-year warranty on most wearable parts (including brake pads, tires, belts, and wiper inserts), a fifteen-day exchange window, a lifetime engine warranty, a 120-point inspection to ensure the vehicle’s reliability, and more.