What is a Demo Car?May 21th, 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, 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.
Wear and Tear
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. 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.
A demo car usually has between 2,000 and 10,000 km on it and has generally been driven for less than 8 months. The length of time a demo is driven for depends on how quickly the car can be sold. If the dealership has a customer that wants to buy the demo early on, the employee may only have the vehicle for about a month, if a car takes longer to sell, the car may be driven for 6 – 8 months. Most dealerships have a maximum mileage, or amount of wear and tear, that can be put on a demo before it’s taken off the road.
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.
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’ll receive a discount off the original price tag and won’t have to pay most of the added fees that are associated with a new car, including freight and PDI. You truly are getting the best of both worlds.
All Drive Autogroup dealerships have a wide variety of new, used and even demo vehicles. We offer great discounts on all our demo cars, which can be found by clicking the button below. To check out our demo cars in person, you can visit any one of our dealerships in Ajax, Pickering, Scarborough, Whitby, or Markham.
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.
Drive Autogroup also uses a 3rd party software that compares all the prices of used cars in your area to ensure that you’re always getting the best deal when you buy with us. With all this at a 2.9% interest rate, it makes you wonder, why would you buy a used vehicle anywhere else?