What Is a Demo Car? A Comprehensive Guide to Finding Your Dream Car at City Subaru

A demo car might be exactly what you’re after. With all the new car perks, you can settle for a sizzling hot deal on a basically new model, with the only difference being it’s not brand spanking new – expect anywhere up to 5,000km on the odometer.

In this guide, we tackle demo cars. What are they, and what are the benefits for prospective buyers like yourself?

Let’s dive in with the basics.

What is a demo car anyway?

Demonstrator cars or demo cars are the vehicles used by car dealerships to show off the various features to potential customers. Potential buyers also get a chance to drive these models around – to get a feel for the car before deciding on the purchase.

You might be wondering, ok, isn’t that just a used car? The difference between a used car and a demo model is basically the 5,000km mark. Once the car reaches that point (after doing many demonstrations), it’s considered a used car and loses even more of its value. Hence the motivation on the part of dealers to “sell off” these vehicles before they lose their value. Car dealerships – like City Subaru will often sell demo vehicles for significantly less than the brand-new model of the same car.

Pros and cons of buying a demo car

Buying a demo car can be a great way to save money on your next car. However, there are both pros and cons to consider before making your decision.

Pros of buying a demo car:

• Lower prices: On average, you can get anywhere up to $4,500 off the full price when you opt for a demo vehicle over a brand-new car.
• Low mileage: Expect a demo car to have anywhere below 5,000km – which is pretty much as good as new.
• Usually in great condition: demo cars spend their early life in the showroom, modelling and showing off. You can expect them to be in good condition and certainly far better condition than a used car equivalent.
• Warranty: Demo cars usually come with a manufacturer’s warranty, giving you peace of mind.

Cons of buying a demo car:

• Limited choice of model: Demo cars are usually limited to a particular model, colour, and specification, limiting your options compared to new vehicles. If you have your eyes on particular extra features, you may have to sit tight for a while.
• Faster depreciation: demo cars have already been on the road a fair bit, and will only depreciate further once you take over the wheel.
• Obscure history: Demo cars will be driven (for short periods) by multiple people – and there’s little way of tracking how they were driven.

Common misconceptions about demo cars

Demo cars are the subject of many misconceptions. Let’s debunk 5 myths about demo cars:

1. Demo cars are used: Demo cars are not used cars in the traditional sense. While they have been driven, they are still considered new cars, because they don’t have any previous owners.
2. Demo cars are damaged or faulty: While demo cars may have some minor wear and tear from being used for test drives, they are generally in excellent condition. Here at City Subaru Perth, we take care of our demo cars to showcase them to the public.
3. Demo cars have high mileage: Demo cars will have low mileage since they have only been used for test drives or as display models at the dealership. Typically, they will have fewer than 5,000 miles on them.
4. Demo cars are hard to sell: There is increasing demand for demo cars as they represent a lower price point but still come with that “new car” feel.
5. Demo cars don’t have any warranty: just like new cars, demo cars come with a manufacturer’s warranty. The length and coverage of the warranty may vary. You can speak to our team at City Subaru to find out more.

Financing options for demo cars

Like any car purchase, you’ll have a range of options at your disposal to buy a demo car. Here are three of the most common avenues:

1. Dealer financing: Many dealerships, including here at City Subaru offer financing options for demo cars. This is a convenient way to purchase a car and arrange financing in one place. City Subaru offers competitive interest rates and flexible repayment terms.
2. Personal loans: Another option for financing a demo car is to take out a personal loan from a bank or other financial institution. Personal loans can be used for a variety of purposes, including purchasing a car, and may represent an attractive option.
3. Car loans: Car loans are specifically designed for purchasing cars and can be a good option for financing a demo car. Some lenders offer car loans with competitive interest rates and flexible repayment terms.

Make sure to weigh up your options carefully before making the decision.

Tips for negotiating the price of a demo car

Negotiating the price of a demo car is different to negotiating a used car – or a new car for that matter. Here are a few tips for negotiating a demo car at a dealership:

1. Knowledge is power: do your research and know all the models inside out. If you know your optional extras, and price points of both new and used car equivalents, you can more easily discern whether or not you’re being offered a good deal for a demo car.
2. Use any damage or faults to your advantage: dealers will likely know of any damage and should account for this in their offer. Make sure you’re aware of any potential damage before deliberating on the price.
3. Leverage the mileage to your advantage: cars with over 4,500km on the odometer will be close to the end of their demo life. Use this to your advantage when you propose a counteroffer.
4. Don’t be afraid to walk away: if you’re not getting a suitable price offer, consider walking away and thinking over the offer before settling.

Buy great demo cars right here at City Subaru

Ready to test drive one of our demo cars?

Visit our South Perth dealership to take one of our Subaru models for a spin. Don’t miss out on the opportunity to test drive one of our demo cars and potentially drive away with a great deal! Check out City Subaru’s massive Subaru demo sale. Visit our South Perth dealership today and ask our team about the demo models in stock.