Demo cars vs Used Cars: A disconnect - Mercedes-Benz Forum

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post #1 of 4 (permalink) Old 08-18-2005, 01:46 PM Thread Starter
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Demo cars vs Used Cars: A disconnect

So the local dealer has offered what he considers good deals on some nice demo cars he has. His position is that these are essentially new cars that he will sell at invoice, or slightly under when equipped with some dealer add-ons (Sirius, phone).

My position is that these are used cars, period, and 10 to 15% depreciation is involved. If someone asked for "invoice" price in the private sale of used car, one would walk away in a heartbeat.

Have you ever convinced a dealership that a demo is simply a used car? Or has the dealer convinced you that a demo is a new car?

Steve [?]
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post #2 of 4 (permalink) Old 08-18-2005, 05:30 PM
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RE: Demo cars vs Used Cars: A disconnect

It sounds like a sales gimmick to me. But here's what they do.

They take a new model car, give it to dealer employees to drive. The car has never had a title issued so most banks and states consider them to still be new cars. In our state, the new car title code is 01. If it becomes titled, then the next one will be 04.

They are using the philosophy that it is still new if it hasn't been titled. You also will get a better interest rate on a new car loan (usually) than a used one.

So that's why they never title them to the dealer.
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post #3 of 4 (permalink) Old 08-18-2005, 05:42 PM
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RE: Demo cars vs Used Cars: A disconnect

At the same time, it IS a used car that has been driven. Legally (or more appropriatley, from a legal standpoint), they are correct the car is brand new. Ethically, they are using a loophole to circumvent the loss. It's up to you, but my personal choice would be to avoid it. I don't like the idea of buying a new car with a few hundred/thousand miles on it. If I'm paying for new, then the miles are the ones onto, an off of transport. Not a few months of a dealer using it as his personal conveyance.
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post #4 of 4 (permalink) Old 08-19-2005, 02:03 PM
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RE: Demo cars vs Used Cars: A disconnect

Invoice is BS, that is what the factory sold it to the dealer. Ak the dealer how much the factory is giving in rebates, and end of year promotion. The salesman and others drove it, probably not the best of care. Its like buying a rental car, used car is used car, the only thing is the warranty starts when it is sold. If you got to try a demo for a couple of days how would you treat it?
What do you think happens to all the cars they supply to golf tournaments, they are not titled, dealer plates!
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