Have you ever gone to the car Dealer to look at new cars and the car salesman showed you a Demo car? Buying a demo car is not for everyone because there are some things to consider if you are going to buy a dealer demo car.

Buying a Demo Car the Details

Before buying a demo car there are some things that you might want to think about. Many new car dealers let their salesmen and managers drive demo cars as a perk. It is a taxable perk that is not free, anybody at the dealership that drives a demo vehicle gets taxed on the equivalent value as income. Not all car dealers allow their sales people to drive demo cars because they still have to sell them after they have used them for a personal vehicle. The larger the dealer the more sales people there are and that means quite a few demos to sell.

The Facts on Buying a Demonstrator Car

Dealer demo cars are driven by selected staff up to a certain amount of miles without being titled so they can still be considered a new car on the paperwork. If the car dealer buys a new car and uses it as a demo it is not consider a new car, because it as titled to the dealer it would technically be a used car. Most demo cars that are being sold by dealers are new and untitled cars that may have up to 7000 miles on them. The dealers will offer a discount to buy a demo car to compensate for the miles, wear and tear.

Buying a demo car means that you will have less warranty on the car because of the miles that are already on the car. The time of the manufacturer warranty still starts the day you buy the car, but the miles on the car still count against the warranty. You will still be buying a demo car as a new car so it is still eligible for any rebates or manufacturer or dealership financing that is offered on the same new car.

Buying a Demo Car Depends on the Buyer

If you are the type of person that wants a brand new flawless car then do not buy a demo car. Most demo cars are taken car of very well by the car dealers because they know that they have to sell them after they have been demos. However they have been used for 7,000 miles or so, if that does not bother you and the demonstrator car looks like new the ultimate question to buying a dealer driven demo car is how much money can you save.

The demo car is often sold to a car buyer that is uneducated to the pricing and costs of a new car. The uninformed buyer is presented with an offer to save a thousand dollars or so and they feel that buying a demo car is worth the discount. It is not a car dealer scam, but rather a customer that is willing to buy a demo for a reduced price. If buying a demo car makes the customer happy the car dealer is REALLY happy. So it’s a win/win situation.

As a smart consumer and a reader of CarBuyingHowTo.com you will know that you can very often buy a brand new car for the same price that the car dealer wants for the demo car. Before you consider buying a demo car you should do a little research on the price of a new car. I tell people to Click Here and go to TrueCar and get FREE Quotes sent to your email without every talking to anyone. Take a look at your 4 quotes and compare the lowest quote to the price that the car dealer is offering on the demo car. If you can get the demo car for 5% less than your best quote it is probably a pretty good deal. However the demo car must be in near perfect condition and acceptable to you. If not, take a pass and buy the brand new car by following the Auto Buying Steps for the steps to buy a car.