Expected reduction for a demo model

ChadHogan · 27-06-2021 3:35pm #1

Currently looking at a demo model, 211 reg with 1000km on the clock. Same car as new would be 51k excl delivery, I am being quoted 48k for the demo model, no trade in cash deposit and pcp deal thereafter

Like all lot of new cars there is long lead times at present so maybe the dealer feels like he can get the advertised price.

From my point of view another 1 or 2 k is not going to put the deal out of reach, but would be curious what people thought my scope for negotiation was and should more of discount apply on the demo.

Haven't tried to haggle at all as yet, am hoping to agree a price tomorrow.

Any opinions would be welcomed

Toyotafanboi · 27-06-2021 5:00pm

Depends on the car but the dealer is right, stock is hard got at the minute and plenty of buyers so unless it's something oddball 3k off a 51k car seems reasonable, generally speaking.

ChadHogan · 27-06-2021 7:03pm

Thanks for the feedback. My initial thoughts were surely the reduction in price should have been more, but I know very little about the industry, and this will be the newest car I've ever bought.

The dealer i was speaking to was very laid back and relaxed which made me think that he was happy to sell me the car but if I didnt buy it wouldn't be sitting there long

Buddy Bubs · 27-06-2021 7:14pm

What car is it? At 51k some cars are flying out the door and others are in dreamland thinking they have a market at that price

JoeA3 · 27-06-2021 7:39pm

Demos often seem quite poor value to me. Only a few K off the price of a new one and (if you are buying straight) you’d get a little discount off a brand new one anyway.
Then if you’re going with finance, the brand new model will generally have the better finance offer.
Main advantage is you have the car this week versus waiting months for a new one.

Cath54 · 27-06-2021 8:01pm

Usually demo models have extras you wouldn't normally afford. Plus low mileage....

Padraig Mor · 27-06-2021 10:07pm

5.8% discount over new for a second hand car? Seems poor value to me regardless of stock issues.

L-M · 27-06-2021 10:37pm

The easiest way usually is to price the same car new off another dealer.

Also, make sure you’re getting the same interest rate and GMFV as a new one if you’re doing PCP, they’re rarely the same and usually worse value.

jake frost · 27-06-2021 11:07pm

I would be expecting a better discount than that, and i would haggle with him, u have nothing to lose, failing that id buy new, if there isn't to much in the difference, as was said previously try another dealer to see how much u would get off a new one. However he has u over a barrel as he knows there probably arent to many demos with similar milage around.

bazz26 · 27-06-2021 11:21pm

If the same car brand new has a long lead time or in short supply then the dealer knows they will get good money for an ex demo because it's available right now. Unless you are prepared to wait for a brand new one with a more reasonable discount then the dealer has the upper hand in this instance imo. It will boil down to how quickly you want the car.

Widdensushi · 27-06-2021 11:29pm

If you were buying new you would be trying for more of a reduction than that, it seems like a bad time to buy.

BillyBiggs · 27-06-2021 11:32pm

In some ways the demo model limits your choice as a buyer. For example you don’t have a choice in the colour of the car, the type of alloys that are on it and what extras it comes with. It doesn’t seem like an amazing discount to me, but I’m no expert.

[Deleted User] · 27-06-2021 11:34pm

4 years back I put in a cheeky bid of 49k (I spec'd it at €60k new) and it was accepted.

Be ready to walk away and you can get a good deal.

colm_mcm · 28-06-2021 9:34am

Chinese whospers wrote: »

4 years back I put in a cheeky bid of 49k (I spec'd it at €60k new) and it was accepted.

Be ready to walk away and you can get a good deal.

It’s the simple economics of supply and demand though, dealers don’t have to sell cars out at cost these days, and probably aren’t under pressure to hit sales numbers.

It would also kill me to pay list price or close - but if you want a car right now - or even soon, you might have to compromise.

Del2005 · 28-06-2021 9:41am

With the way that the chip shortage is affecting cars the demo available now most likely will be better speced than a new one from the factory, whenever it's available as car manufacturers are not a priority for the chip makers.

Reading about manufacturers cutting lots of features to keep selling new vehicles and no discounts for stock cars because of demand.

[Deleted User] · 28-06-2021 10:06am

colm_mcm wrote: »

It’s the simple economics of supply and demand though, dealers don’t have to sell cars out at cost these days, and probably aren’t under pressure to hit sales numbers.

It would also kill me to pay list price or close - but if you want a car right now - or even soon, you might have to compromise.

Yeah, 4 years ago might be different. It was an unusual model too, whereas more 'regular' cars may have less wriggle room.

ml100 · 28-06-2021 12:59pm

Chinese whospers wrote: »

Yeah, 4 years ago might be different. It was an unusual model too, whereas more 'regular' cars may have less wriggle room.

Now is really not the time to get value, if you can, I'd wait a few months and see what the supply is like then, most companies should be up and running be they, the government has thrown out too much free money and whole economy is over heating.

[Deleted User] · 28-06-2021 1:18pm

ml100 wrote: »

Now is really not the time to get value, if you can, I'd wait a few months and see what the supply is like then, most companies should be up and running be they, the government has thrown out too much free money and whole economy is over heating.

I'm personally not looking, so clueless about the current market.

But, if I was looking, it'd be a fairly uncommon car, so if there were demos around I'd look for value.

whippet · 28-06-2021 1:21pm

ml100 wrote: »

Now is really not the time to get value, if you can, I'd wait a few months and see what the supply is like then, most companies should be up and running be they, the government has thrown out too much free money and whole economy is over heating.

the global silicon shortage means that if anything now is the time to grab a bargain if one exists - as there will be supply issues for at least another 18-24 months across many industries.

As people have eluded to - some dealers are now calling customers back with cars on order to say some optional extras ordered can't be supplied. The BMW forums are full of comments like this from the UK buyers.

km991148 · 28-06-2021 1:26pm

Yep, supply and demand.. you can try and haggle, but you might find it tough.

Might be different in 9/12 months time when recession bites (although even then there will still be supply issues).

Wouldn't like to be in a months long waiting list in this market tbh.

Murt10 · 28-06-2021 2:08pm

First thing I always look at when buying a car 2nd hand is the number of previous owners it had. I always prefer a car with a single owner and would be prepared to pay a premium for it. The fewer the owners the better.

A car with say 3 owners over a relatively short period, I'd run a mile, and be thinking problem car. Also ex hire cars are often sold as demo cars, driven by people totally unused to driving them, engine revved to hell and crunched through the gears (especially if driven by someone used to driving an automatic.

In your case, I'd prefer to wait until supply catches up with demand. To my mind, the dealer is totally taking the piss offering a completely derisory discount off the price of a 2nd hand car. I'd 100% prefer to pay the extra to get a brand new car.

Don't forget the manufacturers guarantee is also going to be 6 months shorter than if you bought a brand new car.

Expected reduction for a demo model

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