If you are like most people, you believe that buying a demo car is usually a great deal because it’s a new car with less than 5000km on the clock and has only been used for test drives. There are some things you need to know about buying a demo car however, and there is also another kid on the block that can save you plenty of money and these are termed ‘called’ cars!
What you need to know about buying a demo car
Dealers receive a bonus from manufacturers for these demo cars, but they usually need to be held for at least 45 days to receive this bonus. That’s why dealers like to get rid of these cars within two to three months, because they have received their bonus and now want to sell the car while it still has plenty of registration and warranty.
What you need to know about buying a ‘demo’ or ‘called’ car
For a dealer to receive additional discounts on new cars from the manufacturer, they often need to buy a large number of cars and to declare them as sold, even when they aren’t sold!
These are termed ‘called’ cars and can be sold as demo models, but there is a distinct difference between a true demo model and a ‘called’ car; you need to be aware of these differences because they will affect your warranty.
With a true demo model that has been used for test drives, the warranty commences when the car is registered. However since ‘called cars’ are undriven they are a much better deal, but they can be registered or unregistered. If registered, the warranty commences when the car was registered, but if unregistered and this is important – you can insist that the warranty commences when you register the car yourself.
Knowing the difference between buying a demo car and a ‘called’ car, as well as when the warranty commences, can save you thousands of dollars and prevent your warranty being eaten away before you drive out of the lot.