Many car dealers offer demo cars to their customers at a discounted rate. These cars are usually driven when being used for test drives. The cars need to undergo a maintenance check before being offered for sale. Many potential customers are ready to buy such cars with the main reason being savings. The discounts on the demo car may sound attractive; but there are some factors that should be considered before investing in one.
A demo car is a car that has been driven and has some miles on it. However, it is not registered by the state. In contrast, a used car is registered. Only registered cars are considered used. Thus, demo cars are legally new cars even though they have many miles on them. This may lead to higher insurance rates. In addition to this, the mileage is subtracted from the warranty and the car comes with substantial wear-and-tear.
History of the Car
Remember to ask the dealer about the history of the car. It is a good idea to know how often, where, by whom, and when the car has been used. Many a times this is supported by paperwork. Many a times some of the parts of the overall performance is comprised when buying such cars. Doing so could actually be saving you from a rip-off if the car has any technical issues.
Demo car prices can be negotiated. Remember these cars are unwanted cars and dealers get huge commissions from the manufacturer to get rid of the car. Thus, they may be able to give you a better rate by lowering their commission to some extent.
Study of Prices
It is a good idea to get an idea of the new car prices. This would help in negotiating the price. It is also a good idea to get a rough estimate on the costs of an old or used car as it has substantial wear-and-tear, making it higher.
A thorough analysis must be done on new versus old cars. If the selling price of the demo car is not very high as compared to the new car, it is wise to go for a new car. This is because insurance, warranty, and maintenance costs may be higher for demo cars. Thus, do a complete study before selecting the right car.
Ensure you are dealing with a reputable car dealer to whom you can go back if something goes wrong.
Car Inspection: The car must be thoroughly inspected. While inspecting the car, follow these guidelines:
The engine must start smoothly without producing any noises or smoke.
Ensure no accidents have taken place. Check the bodyline properly.
Ensure the auto parts are well painted and of the same shade.
Carefully check the wheel alignment of the car.
Check the tires.
The battery life must be checked.
Check the indicator and the headlights.
The air-conditioner, defroster, fan and heater must be checked effectively.
Ensure the audio system is running effectively.
All electrical components such as lights must be checked.