Should you buy a demo car or a new car?

It’s the New Year, and you are thinking of fresh starts, or is your car old and has been having problems lately? So, you have been toying with the idea of buying a new car. But what about buying a demonstrator or demo car instead? After all, if you can save money during these challenging times, all the better. Read on to find the answer.1

Which car is it to be?1

It isn’t easy to put into words the feeling you experience when you sit behind the wheel of a new car. Just the smell is enough to make you ecstatic. Of course, this is all very well, but it is still important to consider all the pros and cons of a demo car. Finding out doesn’t cost you anything except some time.

How to reach an informed decision1

Doing additional research is invaluable as it empowers you to make the right choices.

What if it is to be a new car? 1

A clear advantage of buying a new car is that you have peace of mind that nothing should be going wrong. With a service plan in place for a few years, you don’t have to stress upcoming service costs. In addition, you have the freedom to choose what colour car and model you want, including all the bells and whistles of your own choice.

A strong disadvantage in buying a new car1

This is the price. The starting price becomes essential when you work out how much interest you pay over 5 or 6 years through a bank. This is where a demo model’s price begins to look attractive. But your quest for a new car may not have failed just yet. Often dealerships have discounted prices on new vehicles to make the deal more attractive. Perhaps they may make you an excellent trade-in offer. So, it is worth your while to hunt for that great deal.

What is a demo car? 1

This is a car that has never been sold but used by a dealership to take prospective customers on test drives. Many motorists avoid buying a demo car because they assume it has been neglected because of test drives and reckless use by dealership staff. However, this notion may not be true, seeing it pays the dealership to take care of the car for any future sale.

The advantages of buying a demo car are greater1

The most significant advantage is that dealerships know that demo cars depreciate over time. This gives you the confidence to expect a good discount. Demo cars are like new cars, with service and maintenance plans still in force. The warranty period still applies as the accredited dealership did any servicing. It’s best to inquire at a dealership about their current demo cars.

Disclaimer

Please note, this article can only be a source of information. Please consult a registered financial service provider for more information before buying any car insurance product.

Sources:

1. 1. Weigh Your Options: New Vs Demo Vs Pre-owned