Your checklist when buying a demo car

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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The majority of car dealers offer potential customers demo cars at much more affordable prices. With the sole purpose of saving money, a lot of clients might consider buying demo cars in favour of new vehicles, as the prices can be attractive! Still, there are a couple of aspects you shouldn’t miss taking into consideration before actually making an investment.

History of the car

Before making your purchase, you should discuss the history of the car with the dealer. How often was the car used? The car might have technical issues if it has been used for a significant amount of time. Normally, every dealer should have official paperwork to prove the activity of the demo car.

Consider negotiating

If you’re set on buying a demo, make sure you negotiate the asking price of the vehicle. Most dealers would prefer to sell the vehicle as a demonstrator rather than a used vehicle so use that to your advantage. especially towards the end  of a calender year. 

Research prices

Research is always in order when making an important purchase, it is more important is this instance as a car is usually the second largest purchase someone will make in life. Reseaching prices can come from speaking with several locals dealers, a car finance and vehicle broker, online sales portals such as carsales.com.au, there is also redbook.com.au that specialises in vehicle valuations and editorial sites such as themotorreport.com.au that will provide you with RRP (recommended retail prices) and enough information on vehicles that will make you go cross eyed. 

Attentive analysis

You shouldn’t miss attentively analysing what differentiates the new car from the demo version. Let’s say that the difference between the prices of the new vs. demo car is not that significant, in this situation, it would be advisable to opt for purchasing the new vehicle. Research the market attentively and don’t rush in making your decision. 

Reputation

Another piece of advice would be to make sure you make your purchase from a reputable car dealer. In the worst case scenario the demo car ends up being a lemon, you need to be sure that you can come back to the dealer and have your problem sorted out. Rest easy though that most new & demonstrator vehicles come with a 3-5 year manufacturers warranty. A reputable dealer however will make the process of mechanical repair much easier than a dealer that is all about sales and not after-sale service. 

Car inspection

When inspecting the demo car you have in mind, keep in mind the following indicators:

  • The engine must start easily, without releasing disturbing noise or smoke.
  • Make sure that the car hasnt been through any major accidents  
  • Tyre quality.
  • Check the battery life.
  • Pay attention to the exterior of the car, make sure the paint is in the same shade on all the car surface and their are no scratches 
  • Check all electrical components.
  • Make sure the audio system functions properly 

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