Want a new car without the new car price tag? Such a thing exists – well, sort of – and it’s called a dealer referrer.
Dealership display new cars, also known as demo cars, are current model cars that are owned, driven and then sold by dealers with a few miles on the clock.
Once received, demos are registered by the dealer and put into service as test drive vehicles, dealer staff vehicles, or both.
This usage period usually lasts no more than 12 months and mileage is usually limited to 10,000 km or less. Display models are also often sold as run-out models when there are updates or new models going on sale.
According to Brighton Automotive Group general sales manager Joshua Ferguson, the vehicle in question will then be sold to public buyers at a discount that varies depending on a variety of factors.
“Depending on the model, you can save anywhere from 5 to 15 percent by buying a dealer display car,” Mr. Ferguson said. Automotive expert.
“We definitely get customers who are looking for that product from a cost-effectiveness standpoint.”
In addition to price reductions, another advantage of buying showroom vehicles at a dealership is that they avoid long wait times for new in-demand models.
If you buy a demo from the showroom, you’ll most likely receive it within days, rather than months as will be the case with some 2024 cars.
A show car may also be equipped with all the desirable optional equipment (technology, materials, sunroof, etc.), as it is intended to impress potential buyers.
Additionally, even though the demo is technically first registered by the dealer and often accumulates thousands of miles, the public purchaser is still considered the original owner. This is because dealers can fit ‘trade plates’ to display vehicles so they can be transferred from one vehicle to another.
You’re also likely to receive a car that has been well cared for because dealers are motivated to keep their showroom inventory in top condition. The same is not always true for used car owners.
“In general, it’s a better option than a used car because you know the whole history, it’s never had a second owner,” Mr. Ferguson said.
“Dealer display cars are often in much better condition than used cars and they are serviced according to logbooks whereas some used cars may not be.
“You know exactly where it has been and what it has done. That comprehensive history provides peace of mind.”
The other side of the coin is that you don’t always know exactly how the dealer referral was used and whether he or she lived a harder life than expected.
For example, some off-road capable cars may be exposed to the elements when used for promotional documentary filming purposes.
There are also some unknowns surrounding how dealership staff and especially test drivers treat demo cars on the road.
Many drivers expose their cars to different driving styles and therefore unpredictable levels of wear and tear, even when demo cars show low numbers on the odometer.
Therefore, it is best to carefully evaluate the condition of the demo in person.
While being a demonstrator doesn’t affect a car from an ownership history perspective, it can have an impact on the warranty.
Warranty coverage usually begins when a new car is first registered, so the advertised warranty period will be shortened when a buyer receives the keys to a used showroom car.
However, in Western Australia, buyers are still entitled to the full manufacturer’s warranty period from the date of sale. With that said, the mileage limit still applies, so any miles the dealer runs counts toward the limit.
Buying a used showroom car also limits the buyer’s choices when it comes to specification.
A dealership may only have a demo of a new model in stock, so you may have to settle for that example without getting to choose your favorite color or interior trim.
So while the car may have all the bells and whistles, it won’t be customized to your exact preferences.
Obviously there’s more than meets the eye when buying a dealer’s show car, and potential buyers should weigh the pros and cons before parting with their hard-earned money.
