How do dealers dispose off a demo car?

[satyamkaushik]

I did try negotiating with the dealer at first, but he had this attitude of "either you buy the car or you walk off , there are a number of used car dealers ready to buy the car at a higher price than you quoted", which obviously was a negative to start with. Then the whole idea of spending about 1.5 million on a 3 year old demo car started to feel unappealing.
Secondly a week later i got this news of the dealership getting shut down, which made me lose confidence on the overall deal.

Finally, walked off.

[forester]

Indeed the right call that you took. You should thank your mighty stars! 40k is a lot of mileage for all sorts of people to have tried their hands at and abused the car.

In general as well, unless getting a really honest and transparent deal on a Demo vehicle, it's just better to skip and look elsewhere in the used car space to buy a pre-worshipped and well kept one.

[SHANKY11]

Hello experts, I have a query here. Is it a good idea to buy a used demo car from a dealer? The car in question here is a Fortuner 4*4 AT. It's 1.5 years old, (have decoded the VIN already) and has clocked about 24000 kms. The dealer has been very honest so far about the happenings with this car. One of the rear doors was repainted and there are a few other minor scratches here and there. The test drive was satisfying to me. They even opened the service history on their internal software and their story about the repairs matches. I have also contacted the insurance company and they will be sending a claim report in another 2-3 hrs. There is about 6 months of warranty left on the vehicle and they are offering another 2 years of company warranty.
1. Should I consider this purchase or should I walk away?
2. Their asking price is in the ballpark of 26 lacs. And I think there isnt much scope of bargaining below 25 lacs. Is this a good deal?

[mijnoirhammer67]

Originally Posted by SHANKY11

Hello experts, I have a query here. Is it a good idea to buy a used demo car from a dealer? The car in question here is a Fortuner 4*4 AT. It's 1.5 years old, (have decoded the VIN already) and has clocked about 24000 kms. The dealer has been very honest so far about the happenings with this car. One of the rear doors was repainted and there are a few other minor scratches here and there. The test drive was satisfying to me. They even opened the service history on their internal software and their story about the repairs matches. I have also contacted the insurance company and they will be sending a claim report in another 2-3 hrs. There is about 6 months of warranty left on the vehicle and they are offering another 2 years of company warranty.
1. Should I consider this purchase or should I walk away?
2. Their asking price is in the ballpark of 26 lacs. And I think there isnt much scope of bargaining below 25 lacs. Is this a good deal?

You can get the new one for around 28 lakhs showroom price. Id say walk away, no deal. Buy a new one instead. Look at the Endeavour if you want. But buying a 2 year old vehicle with 24000kms already, for just 5-6 lakhs less is wrong IMO. If it was around 18, that should be the price. Dealers themselves say the vehicles depreciate 20% per year. So a 30 lakh car should be 18 lakhs after 1.5 years.

[IshaanIan]

Originally Posted by SHANKY11

Hello experts, I have a query here. Is it a good idea to buy a used demo car from a dealer? The car in question here is a Fortuner 4*4 AT. It's 1.5 years old, (have decoded the VIN already) and has clocked about 24000 kms. The dealer has been very honest so far about the happenings with this car. One of the rear doors was repainted and there are a few other minor scratches here and there. The test drive was satisfying to me. They even opened the service history on their internal software and their story about the repairs matches. I have also contacted the insurance company and they will be sending a claim report in another 2-3 hrs. There is about 6 months of warranty left on the vehicle and they are offering another 2 years of company warranty.
1. Should I consider this purchase or should I walk away?
2. Their asking price is in the ballpark of 26 lacs. And I think there isnt much scope of bargaining below 25 lacs. Is this a good deal?

I would usually recommend against demo cars but this is basically a Toyota truck and from what you have written the dealership seems pretty straightforward. The price however, is simply not attractive enough. The car is two years old and will be replaced with an all new model next year. Offer 19 lakhs and walk away.

[drmohitg]

Originally Posted by SHANKY11

1. Should I consider this purchase or should I walk away?
2. Their asking price is in the ballpark of 26 lacs. And I think there isnt much scope of bargaining below 25 lacs. Is this a good deal?

I think you can definitely consider it. I usually never recommend Demo cars but if you are able to ascertain that it is a genuine car and there is no excessive wear and tear of parts then surely go ahead. 26L is a bit high but then other members quoting 18-19L is totally wrong too. Fortuner has an excellent resale and no way are you going to get a top end 4x4 vehicle with 20k kms at less than 25L. More so in this case do you become the first owner or second?

Try squeezing them a bit more and if you can get the price reduced to 22-23L then it would be a real VFM deal. BTW at 26L or a bit more, you might get a similar specced Fortuner in the used car market too.

[SHANKY11]

Originally Posted by mijnoirhammer67

You can get the new one for around 28 lakhs showroom price. Id say walk away, no deal. Buy a new one instead. Look at the Endeavour if you want. But buying a 2 year old vehicle with 24000kms already, for just 5-6 lakhs less is wrong IMO. If it was around 18, that should be the price. Dealers themselves say the vehicles depreciate 20% per year. So a 30 lakh car should be 18 lakhs after 1.5 years.

Here in Delhi, a new Fortuner 4X4 AT costs close to 34 lacs on the road. And that, when I'm not factoring the recent 1% green cess imposed on diesel cars. So its 8 lacs off the billing price. The original idea was to buy an Endeavour only but this stupid ban that has been here in the NCR for the last eight months hampered my plans. Its next to impossible to get my hands on an Endeavour right now. Minimum 3 months is the waiting period, which my circumstances dont allow at the moment.

Originally Posted by IshaanIan

I would usually recommend against demo cars but this is basically a Toyota truck and from what you have written the dealership seems pretty straightforward. The price however, is simply not attractive enough. The car is two years old and will be replaced with an all new model next year. Offer 19 lakhs and walk away.

The only reason that I'm even considering it, is that its a TOYOTA. The test drive, the honesty from the dealer's end and the long warranty coverage are the reassuring factors here. I know 26 lacs is a bit steep, but I have tried the used car market and for 19 lacs I am getting 3+ year old examples. And, in those I have to compromise on either the AT gearbox or the 4WD system. Because, the 4X4 AT variant was launched last year only and its hard to find such recent variants in the used car market. In all of NCR (when I searched online), I could only find 1 2015 4X4 AT, which was quoted at 27 lacs.

Originally Posted by drmohitg

I think you can definitely consider it. I usually never recommend Demo cars but if you are able to ascertain that it is a genuine car and there is no excessive wear and tear of parts then surely go ahead. 26L is a bit high but then other members quoting 18-19L is totally wrong too. Fortuner has an excellent resale and no way are you going to get a top end 4x4 vehicle with 20k kms at less than 25L. More so in this case do you become the first owner or second?

Try squeezing them a bit more and if you can get the price reduced to 22-23L then it would be a real VFM deal. BTW at 26L or a bit more, you might get a similar specced Fortuner in the used car market too.

I agree that I can get one in the used car market, but this particular variant is 4X4 AT, which was launched in 2015 only and is non existent in the used car market. I know it sounds crazy but when you know that something superior exists in the market and you settle for less, then it pinches later. AT is something which is a necessity for me and 4X4 is something that I would love to have in my SUV (Even if its used only 4-5 times in its entire lifetime)
I would be the second owner, since its a properly registered vehicle (in the name of the dealership). The car is genuine and there is no evident wear and tear. I think I will try and bargain hard here to get the best possible price.

[drmohitg]

Originally Posted by SHANKY11

The car is genuine and there is no evident wear and tear. I think I will try and bargain hard here to get the best possible price.

Precisely what I am saying. A Fortuner costing 34L OTR will not go for 18-19L as suggested by few members. I feel it is a good deal if you are keen to buy a Fortuner. My suggestion is to go ahead with the vehicle. And anyhow this is one of the most rugged SUVs in our market.

[SHANKY11]

Originally Posted by drmohitg

Precisely what I am saying. A Fortuner costing 34L OTR will not go for 18-19L as suggested by few members. I feel it is a good deal if you are keen to buy a Fortuner. My suggestion is to go ahead with the vehicle. And anyhow this is one of the most rugged SUVs in our market.

Thanks buddy. I guess its time to pull up the "PDI & checklist" article

[nitishk]

Volvo kolkata has given the following ad in today's newspaper. Some of them may not be a bad deal.

[satishchugh]

I am in a dilemma and hope to get some guidance.

Well, a dealer is offering me a a Demo car at 8.5 Lakhs -

• Ford Ecosport Titanium 1.5 Ti-VCT AT
• Make: May 2015
• Run: Approx 20,000 KMs

Since this is unregistered, my on road cost will come up to 9.6-9.7 Lakhs. The second hand market is offering similar vehicles at 7.0 to 8.0 Lakhs. At this point I am willing to pay 7.0 Lakhs on road considering this will be much abused, but also well maintained and less chance of being accidental/with major issues vs a used car dealer. Is this a fair thought or should I rather buy it from the used car market?

[libranof1987]

Originally Posted by satishchugh

I am in a dilemma and hope to get some guidance.

Wow; this is quite an awful deal. Walk/run away. A 3 year-old "demo" car has been through every possible abuse.

First of all, you'd get a pre-owned AT under 8.5 lakhs so it's not even like this is a good financial deal. To top it, when you buy through the used car market, you can be better aware of how the car has been used/maintained.

[vishy76]

Originally Posted by satishchugh

I am in a dilemma and hope to get some guidance.

Well, a dealer is offering me a a Demo car at 8.5 Lakhs -

• Ford Ecosport Titanium 1.5 Ti-VCT AT
• Make: May 2015
• Run: Approx 20,000 KMs

Since this is unregistered, my on road cost will come up to 9.6-9.7 Lakhs. The second hand market is offering similar vehicles at 7.0 to 8.0 Lakhs. At this point I am willing to pay 7.0 Lakhs on road considering this will be much abused, but also well maintained and less chance of being accidental/with major issues vs a used car dealer. Is this a fair thought or should I rather buy it from the used car market?

Ask the dealer to pull out the service history of the car and all insurance claims made. Will give you an idea about how it has been used or abused.

If you do find it appealing post these checks, I strongly suggest you bargain further. I think an OTR of 9 lakhs or below would be a great deal.

Don't be too liberal when it comes to bargaining. This is a pre-facelift model and no one will be interested in it now. The ball is in your court.

All the best!

[n.devdath]

Originally Posted by satishchugh

Since this is unregistered, my on road cost will come up to 9.6-9.7 Lakhs. The second hand market is offering similar vehicles at 7.0 to 8.0 Lakhs.

You,ve said it right there. There is nothing in this deal worth exploring. Also, 3 year old demo vehicle with 20k on the odo means that is has been through everything and more.

I would suggest you look for a well maintained, single owner driven vehicle and buy it.

[satishchugh]

I had a further chat with the SA and he told me there is no warranty on the car given that company offered 2 year warranty is long over. He has promised to get back to me if dealer can offer any warranty or I can buy an extended warranty. On the brighter side he said the price is actually 7.75 Lakhs OTR, the earlier communication was due to some mistake at their end. I have a feeling I can bring it down to whereabouts of 7.25 -7.50 Lakhs.

I will meet him in couple of days and will check service history etc., but I want to make up my mind if it's worth buying at 7.25 - 7.50 Lakhs.

Originally Posted by libranof1987

First of all, you'd get a pre-owned AT under 8.5 lakhs so it's not even like this is a good financial deal. To top it, when you buy through the used car market, you can be better aware of how the car has been used/maintained.

True, I can see get it in the second hand market for same price, but then I am not sure what they are selling me - it might be a 80K run car being sold as 30K run. I will trust a Ford dealer more than a generic second hand car dealer