What Do I Need to Be Careful with Buying a Demo Car? Are All Demo Car Drive Away Prices with No More to Pay?

Aerith-Waifu on 18/02/2021 - 23:48
Last edited 18/02/2021 - 23:48

Never bought a demo so I want to double check with you guys. I am about to make an offer for a car, RRP price is $43800, currently its selling for $41800 with 300km on it. The car sales man tells me its demo, built date is June 2020.

I am thinking of offering $40k.

Question is are all demo cars should be quoted by the dealer with a drive away no more to pay price? So when I offer $40k I should be only paying $40k and no other fees involved? Is this correct? And what about registrations? Normally its only whatever its is registered at and not getting the 12 month rego?

Another thing is due to the low kms of the car, what other things or surprises I should be looking for in a Demo? I am buying locally not from an interstate dealer like this guy:
https://www.ozbargain.com.au/node/591152

Finally, under the current covid environment, is $40k a reasonable offer for an demo car with 300kms on it with a RRP of $43800? Or should I go a bit higher or lower?

Automotive

Comments

  • Morien on 19/02/2021 - 00:08

    How much does the car actually go for? 0.8% off RRP doesn't sound like a reason to go ex-demo.

    • Aerith-Waifu on 19/02/2021 - 00:20

      Its $43800 before on road, at the moment they doing deals on them for $42990 + $800 for metallic paint. If I am manage to get it down to $40k DA, actual saving is close to 8.6%

  • bobbified on 19/02/2021 - 00:17
    +1

    RRP price is $43800, currently its selling for $41800 with 300km on it

    I am thinking of offering $40k.

    Even with the demo at $40k, I'd rather fork out the little extra and get a brand new one so I can select the options and colour combinations that I actually want. (Then I'd try to get them to knock off a thousand or two off the new price). Especially if you're intending to keep the car for a long time.

    • Aerith-Waifu on 19/02/2021 - 00:23

      Definitely going to keep the car for a long time 7+ years at least. The new model with some improvement will coming at april, by then this will be the last generation. What I am thinking is the 8.6% discount, which is almost impossible to get these days with any new cars at the moment due to the covid craze.

      • bobbified on 19/02/2021 - 00:25

        What I am thinking is the 8.6% discount, which is almost impossible to get these days

        That really depends what car it is and the demand for it. Is it the VW Allspace Comfortline 7 Seater?
        I'd be pushing hard for a bigger discount if it was that. The euro car prices seem to have a lot more "fat" built into their prices.

        • Aerith-Waifu on 19/02/2021 - 00:30

          Koloes, not high demand for it. Also that other thing the sales guy said warranty for the demo starts when the paperwork is signed by the buyer on the day of the purchase. But my understanding was its already started when the car was first registered. So I am confused who is right? Maybe WA has different rules or something?

          • Hackney on 19/02/2021 - 08:00
            +1

            @Aerith-Waifu: Warranty starts immediately it is registered.

            • spackbace on 19/02/2021 - 10:28
              +2

              @Hackney: Not in WA, warranty on demo starts when it goes into the customer's name

      • Zonty on 19/02/2021 - 00:29

        Demo car have normally full warranties as new car. Only 1 think need to check what year model is. Because if you buy 2020 model car then it's resale value and valuation for insurance drop within year( in case total loss).

        • Aerith-Waifu on 19/02/2021 - 00:32

          This one is has June 202 built date. Now I look at it, it may not be the best price at $40k consider the new one is just around the corner with some improvements……hmmmmmm…….,,

  • AdosHouse on 19/02/2021 - 00:32

    I got a MY18 Elantra Elite, RRP was $27k. But I picked it up as a demo with a whole 28km on the odometer for $22,800.

    One thing to be mindful of with demos is that since it is registered that you will only get the balance of the rego.

    • Aerith-Waifu on 19/02/2021 - 00:35

      Great deal and Great point!

      Which most likely a 3 month rego for the car at this stage vs 12 month for the new car. Thats a differences of $600 there.

      If i go for base colour white, which will be $42900 DA minus say $1000 to $1500 discount if new, I pay $41500 with 12 month rego vs $40k with a rego differences of $600, my saving is only $900 between new and a demo…………………..hmmmmmmm………….looks like $40k is not a good deal at all now……….rather get new!

      • AdosHouse on 19/02/2021 - 00:48

        If you bargain hard you will probably get a new one for $40k.

        • Aerith-Waifu on 19/02/2021 - 00:51

          Unlikely at the current environment, but I be happy to pay $41500 for a new one. I might just wait till March and see what happens. Only 4 weeks to go so I can certainly wait a bit.

          Just found this article, doesn't look too good for Renault at the moment: https://www.caradvice.com.au/919563/renault-will-switch-to-i…

          • AdosHouse on 19/02/2021 - 01:02
            +1

            @Aerith-Waifu: If you are happy to wait. Walk around to the dealerships now, let them put the hard sell on you, say $40k nothing more, let them have your number, and then walk away. See what they offer you in the following days.

            If they do get back to you with $40k, winner. If they don't, look again in March, no probs.

            • Aerith-Waifu on 19/02/2021 - 01:04

              @AdosHouse: You mean for a brand new 2020 one for $40k and not a demo?

            • spackbace on 19/02/2021 - 01:05
              +1

              @AdosHouse: Now is not the time to put the hard word on salespeople. There's not enough stock to go around as it is, so they just won't care.

              Your number will end up in the bin.

  • spackbace on 19/02/2021 - 01:03

    Warranty starts on the demo when it gets transferred into your name. Full warranty. But capped price servicing started when the car was registered.

    If you're at the cusp of a new model, ask the same sales guy what he can do on the new one (if they have pricing). He may say nothing, and then drop the demo pricing harder. Or he might work out a price on the new one that leaves him the same commission.

    Personally, I never see the point in previous plate demos if there's only like $2k price difference. Buy new, have the joy of picking the colour you want and just having the new plate.

    • Aerith-Waifu on 19/02/2021 - 01:06

      Thanks very much for the capped price info, I didn't know it has already started.

      I might ask the pricing of the new one if they have it.

      You are right, $2k isnt a good deal now I put them in calculations.

      Do you take https://www.caradvice.com.au/919563/renault-will-switch-to-i… as a set back?

      • spackbace on 19/02/2021 - 01:07

        Just be upfront. Salesperson won't care as it's a sale either way. Might have more commission left in the new model too, so he's essentially just earned more. You'll find out quickly enough

        • Aerith-Waifu on 19/02/2021 - 01:08

          I shall do just that. Thank you

      • spackbace on 19/02/2021 - 01:09

        Ooh just saw your edit

        OK, things might not change but they also might… Dealers may change to a different franchise, and sounds like they're going to a fixed price model.

        Personally I wouldn't jump at the brand, I'd give them till the end of the year before I made that decision

        • Aerith-Waifu on 19/02/2021 - 01:13

          I dont think the mrs can last that long without a car, our car has been sold and thankfully the buyer is a FIFO, he paid us in full but he requested the car to be kept at our garage till the beginning of April when he returns. As long as we dont damage it we can still drive it. But I am too scared to touch it just in case someone bump into it.

          • Muzeeb on 19/02/2021 - 10:49
            +2

            @Aerith-Waifu: This sounds like a Gumtree scam that wasn't a Gumtree scam.

            • Aerith-Waifu on 19/02/2021 - 16:32

              @Muzeeb: I know. That was the first thing come to my mind but the guy is solid. Just need to keep the car till he comes back.

  • Ughhh on 19/02/2021 - 06:19
    +1

    Question is are all demo cars should be quoted by the dealer with a drive away no more to pay price? So when I offer $40k I should be only paying $40k and no other fees involved? Is this correct?

    If you don't want surprises, do not make assumptions. Ask them and make sure to read the contract.

    • Subere on 19/02/2021 - 12:07

      Was going to post similar. Confirm with them that 40k is drive away. This includes rego transfer.

  • John Kimble on 19/02/2021 - 07:50

    One thing I would advise is to make sure you check the fine print on the new for old condition with your insurance. Some places don't care, but mine did.

    Ie I once wrote off my demo car and insurance didn't replace new for old because they said technically I was the second owner after the dealer. Only got market value which was about 10% less than what I paid for the car.

    https://www.canstar.com.au/car-insurance/new-for-old-replace…

    Your insurer may also require you to be the first registered owner of your car, although if you have an ex-demo car, you will generally also be eligible, provided the dealer was the first registered owner.

    • Aerith-Waifu on 19/02/2021 - 16:32

      Oh that is a great point also. Never thought about it

  • EightImmortals on 19/02/2021 - 08:20
    -1

    Here's a few points to consider.

    https://autoexpert.com.au/posts/should-i-buy-a-dealer-demons…

    • spackbace on 19/02/2021 - 11:19

      Ah good ole John Cardigan…

      PITFALL #1
      HAS IT BEEN THRASHED?

      It's a Renault Koleos - No

      PITFALL #2
      HAS IT BEEN CRASHED?
      Demonstrators get crashed. Often. It’s that simple.

      Actually no, it's not common.

      PITFALL #3
      NUMEROLOGY

      Already being discussed previously

      And that was the extent of that article. What a waste of time

      • Aerith-Waifu on 19/02/2021 - 21:36

        Yes indeed. Not the best video.

  • Austaurean on 19/02/2021 - 18:34

    Stamp duty to change the rego into your name

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