How Much Should I Pay for a Demo Car?

Buy a demo car to save money.

MSRP with Incentives and Discounts

Because demonstration vehicles are often sold at or after the model-year end, incentives and rebates are hefty. You can purchase a demo model with thousands off and often at a low interest rate for financing. For example, you might receive a $4,000 discount and zero-percent financing, an attractive deal for a vehicle that is still considered new. Many buyers are satisfied with the attractive amount of money given off by the manufacturer in addition to low finance rates.

Do Not Pay MSRP

If you buy a vehicle with incentives and rebates alone, it might seem like you're getting a good deal, but the dealer is still making maximum profit from the sale. Incentives and rebates are reimbursed to the dealer by the manufacturer. Because you are buying a car with mileage on it already, you should pay a reasonable amount under the dealer invoice amount, at least $1,000 below, in addition to rebates and incentives.

Bottom Line

You should pay at least $1,000 under invoice before any rebates for a demo vehicle, which the dealership knew was a loss the day it was set out as a demo. The dealer should discount the vehicle accordingly, although he may try not to unless you ask. Use Edmunds, an informational website for vehicle shoppers, to determine the invoice pricing.