Buying Demo Trucks – The Pros and Cons You Need to Keep in Mind
Demo trucks often get overlooked in favour of new vehicles. But is it justifiable? The best way to find out is to learn the benefits and downsides of getting a demo truck.
Demo trucks are test-driven vehicles. Dealerships use them to demonstrate truck models they have for sale. In a way, demo trucks are used vehicles, though they may come with better warranties.
As soon as there’s a new model, most dealers will try to sell the old demos. There are certainly buyers for them.
Because it’s considered used, you can buy a demo truck for less than a new truck. But should you?
This is where you’ll learn all about the pros and cons of demo trucks for you to decide whether you should buy them or not.
The Pros
The most obvious benefit is cost – a demo truck is cheaper than a new truck. But there are other benefits that may not be so obvious.
1. They’re Less Expensive than Brand-New Vehicles
These vehicles might not be pre-owned but they are not new either. Test drives and inspections will cause the odometer to climb up.
Regardless, a dealership can claim that a demo car is still new. And rightfully so in the sense that demo cars are never registered. However, no dealers are going to sell a demo truck at the same price as a new truck, assuming they are equivalent models.
If a dealer has problems moving the demo, you may be able to negotiate an even lower price.
But, does it make sense to pay less for a demo truck? If it’s properly upkept, you’ll be paying less for something that’s closer to a new vehicle than most used vehicles. Most demos also come with full manufacturer’s warranty.
2. You Should Get a Warranty
Most dealers will sell a demo at full warranty. This is a huge advantage over used cars. Sure, most vehicles come with transferable warranties these days, but it only applies up to a certain mileage. Most demo trucks should have lower mileage than a used truck, especially one that’s used for business.
With that said, keep an eye on the terms, as manufacturer’s warranties are still dependent on the demo truck’s mileage and age. You can negotiate this too and the dealer may extend its own warranty for what the manufacturer doesn’t cover.
3. They’re Usually Upper-Spec Models
Car dealerships usually prefer to showcase fully-loaded vehicles that come with the best specs available. This is why demo trucks are, for the most part, the upper-spec models.
This means you might be able to get a fully-loaded truck for the price of a base model. Perhaps even cheaper.
Of course, the demo truck may not be the most current model. A dealer usually only puts a demo truck up for sale when it’s discontinued, too old, or has too many km in the odometer.
4. Ready to Go
There shouldn’t be a waiting period when buying demo trucks. If you decide to buy it, you should be able to drive it away after settling the financials and paperwork. You don’t have to wait for a new vehicle to arrive from the factory in the colour and specs that you specify.
The Cons
Although there are a lot of pros to buying a demo truck, there are reasons to reconsider as well.
1. There’s Potential for Wear and Tear
Yes, this is probably the first thing that comes to mind. As mentioned, customers use demo trucks for test drives. And because they know it’s not their actual unit, they may not take as much care as driving their own trucks.
Some dealers may also offer a demo as a reward for their top salespersons. For example, last month’s top salesperson may be able to take the demo truck home for the month.
This may not mean that there are any issues with the vehicle. It’s just an FYI. If they are some minor inconveniences, you may be able to negotiate an even better price.
Don’t expect to find anything that will require costly repairs, however, as most dealers would have taken care of it before trying to sell their demo.
2. Higher Mileage Will Affect Insurance and Warranty
We’ve established that the warranty that comes with a demo vehicle isn’t going to be the same as what you’d get with a new vehicle. That’s because manufacturer warranties are all mileage-based.
If the warranty covers a vehicle up to 50,000km and you’re buying a demo that has 4,000km on it, you can already do the math. It’s like getting 4,000km less in warranty.
In addition, an insurance company will see 4,000km on the demo and may refuse to insure you up the full price of the vehicle. If there’s any new car discount, you may not qualify for it.
3. It May Not Be Worth It
As a rule of thumb, demo trucks are newer than used trucks both in years and mileage. But that’s not always the case. In fact, you may find a newer model of a used truck for significantly less than the equivalent demo.
Before buying a demo truck, you may want to check local and online classifieds for the same model of used trucks.
Should You Buy a Demo Truck?
Unfortunately, there isn’t a right or wrong answer. Getting a demo truck might turn out to be the deal of the century. But, it also may be a not so great idea.
Yes, demo trucks are cheaper than new trucks and some of them may be in a like new condition. You’ll also probably get an upper-spec model and a full warranty. Also, you can take it home immediately.
On the other hand, there may be some wear and tear on a demo. You also may not get the same warranty as with a new vehicle. And in some instances, you’re better off going used.
Truck Dealers Australia can help you decide whether you should go with a demo truck, or perhaps a new or used one. Check out our range of new and demo trucks and make your decision. Don’t hesitate to contact us if you have any questions.