Are Dealer Demo Models Really Good Deals?

Cars are expensive no surprise there. If you havechanges at 1,000 and 5,000 miles. Many demos skip
been a smart shopper, you have shopped auto loanthis maintenance because the driver knows he isn't
quotes and know how much you can spend. Youkeeping the car.
want to get the most car that those auto loanAsk the dealer for documentation proving the
quotes will buy so it's easy to be tempted when amaintenance schedule has been followed. If the car is
car salesmen pushes a demo car at a discountdue for additional maintenance, insist that it be done
because it has 5000 miles on it.before you sign. Don't fall for promises of free
Salesmen Push Products for a Reasonservice later.
Did you know steak restaurants often lose moneySometimes the car has been in a collision. Before
on steak dinners? That's why the waiter alwaysbuying any used car you should pull an accident
suggests appetizers, drinks and dessert. He's not justhistory on it. Spending a few dollars now can reveal
trying to increase his tip. The manager knows theseunseen damage from an accident the salesman
are high-profit items and tells the staff to push them."forgot" to tell you about.
This isn't a big deal when it's about a $3 piece of pie.Price Demos Like Used Cars
However, it's a different story when you haveAny car loses $3,000 in price the instant it is used so
$30,000 auto loan quotes riding on it.if the car is less than six months old deduct that
Demo models are new cars with high mileage. It couldamount from MSRP. If older than six months, instead
be because the sales manager drove it for a fewdeduct 20% because that is how much cars
months or perhaps a customer bought it but thedepreciate in their first year. For a $30,000 MSRP
financing fell through. In most states the definition ofthat means $27,000 if it's less than six months old or
a "used" car is one that has had a title, so both these$24,000 if older than six months.
cases are technically new cars even with thousandsThen deduct $0.15 per mile. This amount is the
of miles.absolute maximum you should be willing to pay. If
Demos May Have Hidden Problemsthey want more, then it's not a good deal.
A demo is a used car no matter what they call it. IfWith this pricing formula and pre-approved auto loan
you buy one, use caution. Mileage puts wear and tearquotes, car buyers have a very strong negotiating
on the car and many demos don't get properposition. That strength, not the salesman's claims, is
maintenance. Most new cars have scheduled oilwhat makes a demo a good deal.