Discount on demo prices?

[JLR]

Hi everyone.

Ok, we have established that when buying brand new Mk6, you can expect around 10-12% off the RRP.

What kind of percentage would we be looking at if the car is a Demonstrator?

From my research, it seemed like if i compared side by side, a new to a demo, the new would most certainly come out cheaper at 10%.

For example. Stock GTI RRP $47835 - 10$ = $43,051.50.
Most demo's ive seen are around the $45,000 mark. But thats without bargaining.

So what kind of margin would there be on demo cars?

[Corey_R]

So what kind of margin would there be on demo cars?

It's too hard to determine.

A new car is 'new'. What is the definition of a 'demo'. It could be practically and never driven but was on display on the showroom floor. It could be the 'thrash-the-****-out-of-it' test driver which has been abused by every man and their dog and has 8,000k on it.
It could be the 'dealer manager's' car which was generally taken care of whilst driving and has been washed every day.... but it has been 'washed every day' by the dealer employees with sponges and has swirl marks all over it etc etc.

Basically to me there is no difference between a demo and a 'very low kms' 2nd hand car from a dealer. You have to negotiate based on it being 2nd hand rather than a new car.....

[elisiX]

100% agree with corey there.

Demo = used car. Plain and simple. Should be priced as such.

[JLR]

All "demo" (test drive cars) stock GTI's (i've seen) are around the $45k mark (dealer). I know that a brand new, one can be bought for approx $43k.

I told the dealer this, and they had no response, and we not interested in dropping the "demo" price.

[KWICKS]

Demo has a limit on how many kilometres it has before it is classified as used/pre-owned/other wanky terms. I think its 2000kms or 5000kms, almost certain its the former. A car can be called new with up to 200kms or 500kms on the clock (again I think its the former?).

This is useful reading on demo's (various kinds - factory, dealership, etc).

http://helpcentre.carsales.com.au/buying-advice/2912504.aspx

[JLR]

Im pretty sure Toyota is 3000km before they release their test drive car as a "demo".

Yep, when i was test driving a Holden SSV, it had only 20kms on the clock. The dealer said dont take it too long for a test drive, cause "we still have to sell it new".

[JLR]

Demo has a limit on how many kilometres it has before it is classified as used/pre-owned/other wanky terms. I think its 2000kms or 5000kms, almost certain its the former. A car can be called new with up to 200kms or 500kms on the clock (again I think its the former?).

This is useful reading on demo's (various kinds - factory, dealership, etc).
http://helpcentre.carsales.com.au/bu...e/2912504.aspx

Great article by the way. Thanks!

[Corey_R]

The other thing to remember is that a 'demo' car price would more than likely have it listed as 'on the road' whereas a 'new GTI' would probably have the price listed before on-roads etc.

Either way, you'd never pay more for a demo than the equivalently spec'ed new car.

[Flipper Dog]

Dealerships are able to save some dollars by registering cars as demos in that they are not subjected to paying stamp duty for that car (NSW anyway).

So if you are looking at a demo, first find out how much the stamp duty would have cost and then factor that into the demo’s price.

You will be surprised that the savings you make on a demo is not really that great in the overall picture, also factor into this what is the car’s history: ie how hard was this car flogged before you had a look over it.

[Corey_R]

In NSW the purchaser will be required to pay the stamp duty to the RTA. Just like you do with a 2nd hand car etc. The stamp duty payable is still 3% to $45k and then 5% for each dollar above that.

[Dave8878]

Post deleted

[SpeedBird]

One thing about a Demo car is..... all the rattles, squeaks, any problems will be fix pronto by the service department. You dont want someone test driving a car with faults and leaving then with a bad impression and walking out to buy another make. So Demo cars are given more attention in the workshop.

[Flipper Dog]

In NSW the purchaser will be required to pay the stamp duty to the RTA. Just like you do with a 2nd hand car etc. The stamp duty payable is still 3% to $45k and then 5% for each dollar above that.

Yes the purchaser does, but the initial dealership does not.

Below from the RTA's Motor Dealer’s Guide to Vehicle Registration:
2.1.4 Registering a demonstrator vehicle
A demonstrator vehicle can only be registered in the name of a person or a corporation. A vehicle cannot be registered in joint names, a trading name or the name of an unincorporated body.
A courtesy name field of 40 characters is available if an operator elects to record additional information, such as the name of a business or an organisation, but not a person’s name. It is in breach of privacy legislation to record the name of a person as a courtesy name. The courtesy name will be printed on the Certificate of Registration.
A demonstrator vehicle must be a new vehicle and may only be registered for 12 months, registration may not be renewed. It must be registered in the name of a licensed motor dealer. Demonstrator vehicles are exempt stamp duty. A Stamp Duty Exemption Authority must be provided with the Application for Registration form.

[Corey_R]

Yeah - but my point is, to the purchaser it doesn't mean any difference to the overall price of the car. As a customer, whether you buy a new, demo, or 2nd hand, you've got to pay the stamp duty.

[blkmk6]

one of the dealers i went to, had a black mk6 gti (manual) going for $42.5k.

ended up getting a new one instead with the wait till may -.-