Home » Finance » Loans

Are Dealer Demo Models Really Good Deals?

Apr 21, 2008
Cars are expensive no surprise there. If you have been a smart shopper, you have shopped auto loan quotes and know how much you can spend. You want to get the most car that those auto loan quotes will buy so it's easy to be tempted when a car salesmen pushes a demo car at a discount because it has 5000 miles on it.

Salesmen Push Products for a Reason

Did you know steak restaurants often lose money on steak dinners? That's why the waiter always suggests appetizers, drinks and dessert. He's not just trying to increase his tip. The manager knows these are high-profit items and tells the staff to push them.

This isn't a big deal when it's about a $3 piece of pie. However, it's a different story when you have $30,000 auto loan quotes riding on it.

Demo models are new cars with high mileage. It could be because the sales manager drove it for a few months or perhaps a customer bought it but the financing fell through. In most states the definition of a "used" car is one that has had a title, so both these cases are technically new cars even with thousands of miles.

Demos May Have Hidden Problems

A demo is a used car no matter what they call it. If you buy one, use caution. Mileage puts wear and tear on the car and many demos don't get proper maintenance. Most new cars have scheduled oil changes at 1,000 and 5,000 miles. Many demos skip this maintenance because the driver knows he isn't keeping the car.

Ask the dealer for documentation proving the maintenance schedule has been followed. If the car is due for additional maintenance, insist that it be done before you sign. Don't fall for promises of free service later.

Sometimes the car has been in a collision. Before buying any used car you should pull an accident history on it. Spending a few dollars now can reveal unseen damage from an accident the salesman "forgot" to tell you about.

Price Demos Like Used Cars

Any car loses $3,000 in price the instant it is used so if the car is less than six months old deduct that amount from MSRP. If older than six months, instead deduct 20% because that is how much cars depreciate in their first year. For a $30,000 MSRP that means $27,000 if it's less than six months old or $24,000 if older than six months.

Then deduct $0.15 per mile. This amount is the absolute maximum you should be willing to pay. If they want more, then it's not a good deal.

With this pricing formula and pre-approved auto loan quotes, car buyers have a very strong negotiating position. That strength, not the salesman's claims, is what makes a demo a good deal.
About the Author
Author is a freelance copywriter. For more information on Auto
Loan Quotes
, visit http://www.usacarcash.com.
Rating:
Please Rate:
(Average: Not rated)
Views: 498
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources