Bill
Edna,#2Consumer Comment
Mon, October 04, 2004
A demo is still technically a new car. If it has not been titled, lenders will still allow full invoice total when considering loan amounts. Demos are sold with a MSO (manufactures statement of origin) and only titled after the mso is turned into the state titling the vehicle. Now, if the car has damage, repaired or not...it must be disclosed to the consumer. Without a disclosure signed by the buyer, the dealership has put itself in a position to be sued. It is my experience that buying a demo is a poor bargain. I have had demos in the past and know what they go through...hell. They are driven hard and not properly maintained. Smoked in (in some cases)and pushed to the limits in the way they are driven. The dealerships many times will get a write down or incentive for demos from the factory and many employees pay to have demos...but, the dealer will not consider this when selling...that is gravy to the dealer and you must pay at least invoice for the car. Just my take on the subject. Now "program" cars are a different story. The term "program car" is a candy-coated way of saying retired rental car. Worse yet...the program cars available at dealerships are the worst of the rental fleets. Most rental car chains will resell their retired fleet at a retail location that they run...however, the cars that have never been maintained (oil changes etc.) or the units that have had extensive body and paint work (done at rental car shops-the absolute worst repair facilities)...those are sold at auction and end up at the new car stores for sale as "program cars". Avoid them like the prague!
Mike
Radford,#3Consumer Suggestion
Tue, August 24, 2004
Let's get back to common sense here. If someone has been driving a car to work every day for months, i.e. using the car, it's a used car when it comes time to sell it. If the factory price sticker has been removed from the window, it's a used car. A new car might reasonably have been driven only a few times on test drives by potential buyers. Dealers come up with all sorts of words to avoid using the "U" word to describe cars that are no longer new. Think about "demo" or "program" cars a little. The person driving the car knows it only needs to last for a few months before he'll get another brand new one for free. So those 5000 miles are going to be 5000 *hard* miles. Then the dealer implies that the car had some sort of special treatment to justify selling it for nearly full new price. Actually the "special treatment" is just the opposite of what the buyer wants.
Cindy
Nashville,#4UPDATE EX-employee responds
Tue, August 24, 2004
Just to clear up what a Demo is when buying a car... I have sold cars both new and used for about 4 years now...A Demo is still a new car ok...Demo"s usually have between 5000-7000 miles on them depending on your state there is a limit on how many miles a car can have... Now some demos may have less miles on them due to how long a salesmen or manager may have driven them...Every dealership has there own mile limit that they set usually you turn them in about 5000 miles... What happens is if that dealership has a demo program that means managers and salesmen drive a new car for a certain amount of time...It's a perk or an added benefit for working there...A salesmen usually have to sell a certain amount of cars every month to earn a demo...Thats how come dealerships have Demo's to sell... Now when you buy a demo it is still a New Car cause it has never been titled before...now once the car has been titled then it becomes a used car...You can usually save yourself money by buying demos, By asking your dealership if they discount Demos most dealerships will discount a few thousand off...So yes Demo's are new cars that have never been titled...