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As I told a dealer yesterday, I don't care what their internal rebates, kickbacks procedures or whatever are, A demo that's done x km's SHOULD always be cheaper than new.
I got told by more than one salesman that 'Oh that demo would be the same price as a new one' , even after admitting the warranty would only be 2 yrs 11 months (for example).
Whatever the reason, I reckon this is just plain crazy
the only difference between a demo and new is that a demo has been registered. in wa ive test driven a few brand spanking new vehicles with no kms on the clock, and all the dealer does is hang dealer plates on the car only to probably sell them as "new".
With the blowout in waiting times, they are pricing the demo's at or above the drive away price of a "to-order" car.
Even on car sales, second hand cars are priced above the current drive away price for the same spec car with the newer year updates becasue people just aren't willing to wait the 4-6 months for their new car.
It is rediculous but if people are willing to pay it, then they can charge what they are.
It is the only time I have seen where a car can actually appreciate in value.
As mentioned previously, there are demo cars that have close to zero use so you would expect to pay new price, then there are demo cars that are really just a used car and should be a lot cheaper.
Before saying a demo is "too dear" you should also look at what expensive options it has been fitted with so that you are making a fair comparison with a non-optioned new car.
And finally, as Team_V says, the normal laws of supply and demand always apply. If some people are willing to pay more than the vehicle is nominally "worth" (whatever that means) to avoid length delays, then some dealers will use the situation to increase their profits.
And I think that is perfectly OK. That is the way a free market economy is supposed to work. I'm sure that if there was a huge glut on the market for GTIs we would be happy to be able to buy them for 40% off the RRP No one is forced to buy any car at any price, we all have choices.
2017 MY18 Golf R 7.5 Wolfsburg wagon (boring white) delivered 21 Sep 2017, 2008 Octavia vRS wagon 2.0 TFSI 6M (bright yellow), 2006 T5 Transporter van 2.5 TDI 6M (gone but not forgotten).
From the "demos" i've seen in Sydney, most dealers seem to say the price is none negotiable as cars as in such a demand, there is no need. Same with new cars.
i also found that, golf demos shouldn't be classified as a "demo" as such, considering a mk6 demo i saw at Barloworld Mascot had 8000km on it! Most demos in less demanded cars have much less kms such as 2000-3000km max. Those should definitely be at 2nd hand prices, and when i asked them why the prices are so high, the guy just said we are not allowed to lower the price because if you don't buy it someone else will, in a nicer way of saying it.
So basically saying, i wouldn't really recommend people to buy demos from dealers, because most likely they would of been treated much worst than a 2nd hand from a dealer or private seller with low kms. As when i drive a demo, i drive the crap out of them, but when i buy a new car, i drive it much nicer as it is my own car (but you also have people who trash theirs, so there is a risk).
I bought a 2nd hand pirelli fully optioned, with 8000km on it (from a mazda dealer), and i also saw a mk5 and mk6 gti at barloworld with similar kms, but both priced 4-5k more!
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