Car Buying Tips: Are Demo Units Good Car Deals?

When it comes to their demo units, most car dealers will put the demo units in a prominent place on the lot or even in the showroom

. They do this in order to attract people to them just as is the case with any type of marketing or advertising.

Many times a dealer will offer cash bonuses to the salespeople who can't sell or move these demo units off of the lot and get them out of inventory.

Demo units in the automotive business are demonstrators units. These cars are used by managers to get to and from work. Usually as part of your salary package as a manager it will include the use of a demo unit.

As a car buyer you should know that demo cars usually have anywhere from say... 2000 to 6000 miles on them. This is because when they reach this mileage range the manager will stop using a particular demo car and switched to a new one. Once this happens the dealer has to sell these cars as "demo cars".

Because these demo units have miles on they will sell somewhat cheaper than a new vehicle even though they are still considered a new car and will qualify for any type of rebate, special financing, and new vehicle warranty.

It's probably important to note at this point the new car warranty part of that last statement. Keep in mind that from the manufacturer the new car war and the begins at 0 miles on the odometer... not at the mileage on the car at that point in which you buy it.

Demo cars aren't always cheaper than a new car. Manufacturers have the ability to offer various incentives for car dealers to use a particular car as a demo car and this can sometimes be used by the dealer to put the deal together on a demo car, thus making it cheaper.

The problem is this is not consistent across the board when it comes to manufacturers. So, some dealers don't have these incentives from the manufacturer, so they can't sell the demo car much cheaper if at all.

Because of this, the only way for a dealer to discount the demo car in order to make it attractive enough for a buyer, they would have to actually lose money on the sale of the car.

As you might imagine, dealers will generally do this. So, if you are thinking about buying a demo car, be sure to check out the price and the deal you can get on a new car with a heck of a lot less mileage on it.

So, our demo units good car deals? Well... they are certainly worth looking into, but whether a demo car is a good deal for you or not is really going to depend on the dealer's situation.

by: Jeff Neilan

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