Demonstrator car buying guide and checklist

Purchasing a car is big a decision, so you want to be prepared before you start the car-buying process. If you've decided to pick up a bargain and purchase a demo car, this guide will take you through everything you need to know to help you purchase with confidence.

Finding a demo car

While the dealership is the first place you'd turn to find a demonstrator vehicle, you can also search for these on car-buying websites such as carsales.com.au. Comparing prices before you buy can give you some bargaining power to negotiate the price. You can check prices on sites such as RedBook and The Motor Report for new and used vehicles to get an idea of current market prices.

Types of demonstrator vehicles

You might hear advertisements on the radio or TV blaring demonstrator deals, but before running out to pick one up, make sure you understand what you're buying:

• Runout models.
  These are discounted models that need to be cleared out before new stock arrives. Kilometres are usually below 10,000km but can come with discounts for the amount they've travelled.
• Dealer demonstrators.
  Cars in this category can be offered as loaners to customers and they are usually the newest models to help promote them. These can also be cars that customers returned and repaired at the dealership or even cars that have been from cancelled customer orders.
• Factory demonstrators.
  Vehicles used at events, promotions, for sponsorships or at companies with company car plans with high turnovers or press fleets can send these vehicles back to the dealership to sell for a bargain price.

Tips for making your purchase

• When you're at the dealership, find out how old the car is. Find out how often the car was used and if there is any paperwork available to see the activity of it use.
• Check when it was registered and who the first registered owner was.
• If the car has a decent number of kilometres driven on it, ask who has been driving it and what its primary use was.
• Ask what differentiates the new car from the demo version.
• Check the kilometres – if it's over 500km, ask about its history.

If you know how much you want to spend - you could get pre-approval for finance here >

How to inspect the vehicle

Demonstrator vehicles are relatively new, but they all differ on age and kilometres driven. Inspecting the vehicle for any signs of wear and tear is important prior to making your purchase.

• The engine should start easily and shouldn't make any noise.
• Check the quality of the tyres.
• Ask if the vehicle if the vehicle has been in any accidents.
• Check the battery life.
• Make sure there are no scratches and check the paint quality.
• Check the lights, radio, windscreen wipers and all other systems function properly.

How much do you save with a demo vehicle?

This differentiates from purchase to purchase. The main saving comes from the fact that the car isn't "new", so cannot be sold as such. Also, you will be given many of the extras that come with top-of-the-line vehicles as they need to show them to customers on test-drives. If you aren't happy with the price, ask yourself if you really need all of the extras that are being thrown in with the car.

You should also look at the new vehicle sticker price of the model you are purchasing and see how much you are saving with the demo vehicle.

Demonstrator vehicles can be a great option that can help you save. If you're interested in purchasing a used vehicle, you can take a look at our car buying guide by following the link below.

How-to guide and checklist for your used car purchase

Comparison of car loans you can apply for

{"visibility":"visibilityTable","ctaLabel":"Calculate","tableCode":"AUFCL_COMPARISON_V2_TABLE","nicheCode":"AUFCL","fields":[{"name":"LOAN_AMOUNT","value":"20000","options":"","label":"Loan amount","suffix":"$","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""},{"name":"PERIOD","value":"3","options":"","label":"Loan term","suffix":"years","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""}]}

1 - 12 of 108

Updated regularly

Name	Interest Rate (p.a.)	Comp. Rate (p.a.)	Application Fee	Monthly Fee	Monthly Repayment
OurMoneyMarket New Car Loan Fixed1 - 7 Years $2,001 - $75,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee $250 min.	Monthly Fee $0	Monthly Repayment $622.82	Go to siteMore Info Compare
loans.com.au - New - Variable Rate Special Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 6.24% to 7.74%	Comp. Rate (p.a.) 7.36% to 8.85%	Application Fee $400	Monthly Fee $8	Monthly Repayment $630.83	Go to siteMore Info Compare
Stratton Finance New Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $625.27	Go to siteMore Info Compare	You'll receive a fixed rate from 6.52% p.a. depending on the lender you are approved with. Apply for up to $300,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Simplify New Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.19% to 18%	Comp. Rate (p.a.) 6.6% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $622.21	Go to siteMore Info Compare
Credit Concierge New Car Loan Fixed1 - 7 Years $10,000 - $100,000	Interest Rate (p.a.) 6.29% to 16.45%	Comp. Rate (p.a.) 7.41% to 17.91%	Application Fee $553	Monthly Fee $10	Monthly Repayment $637.97	Go to siteMore Info Compare
RACV New Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.29% to 16.99%	Comp. Rate (p.a.) 8% to 17.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $635.67	Go to siteMore Info Compare	You'll receive a fixed rate from 7.29% p.a. A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
Credit Concierge Used Car Loan Fixed1 - 7 Years $10,000 - $1,000,000	Interest Rate (p.a.) 6.8% to 17.45%	Comp. Rate (p.a.) 7.56% to 18.91%	Application Fee $553	Monthly Fee $10	Monthly Repayment $642.74	Go to siteMore Info Compare
OurMoneyMarket Used Car Loan - No Vehicle Age Limit Fixed1 - 7 Years $2,001 - $75,000	Interest Rate (p.a.) 6.57% to 18.99%	Comp. Rate (p.a.) 7.19% to 21.78%	Application Fee $250 min.	Monthly Fee $0	Monthly Repayment $622.82	Go to siteMore Info Compare
Stratton Finance Used Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.52% to 18%	Comp. Rate (p.a.) 6.95% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $625.27	Go to siteMore Info Compare	You'll receive a fixed rate loan from 6.52% p.a. with a comparison rate of 6.95% p.a. A used car loan of up to $300,000 with quick approval times and balloon payment options.
Simplify Used Car Loan Fixed1 - 7 Years $10,000 - $300,000	Interest Rate (p.a.) 6.19% to 18%	Comp. Rate (p.a.) 6.6% to 23%	Application Fee $395	Monthly Fee $0	Monthly Repayment $622.21	Go to siteMore Info Compare
loans.com.au - Variable Rate Used Car < 5 years Variable3 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 7.74% to 7.74%	Comp. Rate (p.a.) 8.85% to 8.99%	Application Fee $400	Monthly Fee $8	Monthly Repayment $644.82	Go to siteMore Info Compare
RACV Used Car Loans Fixed1 - 7 Years $5,000 - $150,000	Interest Rate (p.a.) 8.49% to 16.99%	Comp. Rate (p.a.) 9.21% to 17.77%	Application Fee $499	Monthly Fee $0	Monthly Repayment $647.01	Go to siteMore Info Compare	You'll receive a fixed rate from 8.49% p.a. Benefit from no ongoing fees, 5-hour approval and a 21-day satisfaction guarantee. Interest rate discounts for members.

loading

Load More

Showing 12 of 12 results

Picture: Shutterstock

Written by

Elizabeth Barry

Lead Editor

Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review. See full bio

Elizabeth's expertise

Elizabeth has written 292 Finder guides across topics including:

• Banking
• Personal finance
• Investing