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Considerations When Buying Ex-Demonstrator Vehicles

Earlier this year, the new car industry changed the method with which it reports some of its sales data. As a result, one of the consequences to come out of this is a reduction in the number of ex-demonstrator cars being sold in showrooms across the country.

The changes are because of the way reporting obligations dictate stock transfer from manufacturers to dealers. You can read about the particulars in greater detail here. Nonetheless, what are some of the key considerations when buying ex-demonstrator vehicles?

What is an ex-demonstrator vehicle?

Ex-demonstrator vehicles are those from the dealer’s showroom that have been used as a demo or test vehicle. They will have often been taken out onto the roads for test drives, meaning they are not specifically new, but have low kilometres on the odometer and are generally just a couple months old.

They may also be given to dealer sales staff as means to use for their own purposes. Finally, in some instances ex-demonstrator vehicles will be loaned out to interested buyers looking to assess the vehicle in greater detail before coming to a decision on whether to purchase the car or not.


Are ex-demo vehicles actually cheaper?

Yes, ex-demo vehicles are priced at a discount to the retail price. While ex-demo vehicles are associated with a discounted price, the extent of that discount will be influenced by a series of considerations. Generally, above everything else, one of the key factors is the specific model of the car and its regular price.

Manufacturers have different strategies for different vehicles in their line-up. Certain models sell more quickly than others because of their popularity. Dealers will always have willing buyers if there is a discount, but they will still look to maximise the resale value for the ex-demo car. The condition and mileage of the vehicle will also influence the discount on an ex-demonstrator vehicle, however, you should be able to save at least a few thousand dollars off the retail price.

What else should I be aware of?

These are some of the key points you may want to consider if the idea of an ex-demonstrator vehicle is appealing to you. Make sure that you assess each point before making a decision.

  • Ask the dealer whether the registration is being transferred across into your name as well
  • Ex-demonstrator vehicles require quick settlement, so make sure you have the means to access finance at short notice – pre-approval might be required
  • Understand whether the warranty will start when the vehicle enters into your possession
  • As ex-demo cars have been used, it is wise to inspect their condition closely, especially as many people will have entered and exited the vehicle over a short period of ownership
  • The best discounts are most likely to be attained if you are buying an ex-demonstrator vehicle near the end of the period where dealers look to clear stock, which is around 3 months

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