As I mentioned previously, my husband and I recently bought a test-drive vehicle from the dealer with 2,400 miles on it. There were three main benefits to doing this. However, as with anything, there are also downsides. Here are the four main drawbacks of buying a demo car.
The Demo Car We Purchased
We purchased a 2022 Corolla Cross from the dealer; this car was available because the dealer had recently received the new model demo car—a 2023 Corolla Cross. When dealers receive the new demo model, they sell the old one. We were lucky to snag the demo because it was the only Corolla Cross on the lot (besides the new demo that just came in). Otherwise, we would have had to order a new car and wait up to six months for the vehicle to be delivered.
The Drawbacks of Buying a Demo Car
Overall, we’re happy that we bought the demo car, but there are some drawbacks.
The Car Loan Rate Is Higher
We put down a significant down payment, but we still had to take out a car loan for the remainder of the balance. We would have received a .4 percent lower interest rate if the vehicle had been new. In addition, we could have stretched the car payments out for six years instead of five.
However, the vehicle was sold as used because it was already titled. Therefore, we had to pay a slightly higher interest rate for the loan. In addition, five years was the maximum length of the loan available. (We did take out a five-year loan, but we plan to pay it off much earlier than that.)
You Don’t Get to Pick the Color
When you buy a demo car from a dealer, you have no choice in the design. Our car is a deep forest green. That’s not the color I would have chosen; I would have preferred a blue or gray car. However, I spend most of my time inside the car, so I don’t notice the color. Besides, few people buy dark green cars, so our vehicle is easy to spot in a parking lot.
Lose Some of the New Car Perks
Buying a test-drive vehicle means losing out on some of the new car perks. For instance, the dealer offers two years of free maintenance with every new vehicle. Since our car had sat on the lot for a year, we got the remainder—one year of free maintenance.
The Vehicle Sat in the Elements for a Year
Speaking of sitting on the lot, our vehicle was exposed to the elements for a year. Unfortunately, we live in a snowy area, so the car received a lot more outer wear and tear than it would have if we had been able to buy it new and store it in our garage. However, it still looks new, so hopefully, the elemental exposure did not affect it much.
Final Thoughts
Overall, we’re happy with our new vehicle and are glad we were able to take possession immediately. However, there are some drawbacks to buying a demo car which you should know if you ever plan to buy one yourself.
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