Cash incentives with a demo car?

[watwat]

Looking to get a Buick Enclave 2011 , the dealer is telling me that it is a demo car . So my question is will the Cash incentive for that car in 2011 apply towards the asking price from the dealer since it is a demo ?

[booblehead]

demo for 2011 ? we are in 2012 and dealers are clearing MY2012 and getting ready for MY2013.

Sounds like you need to clarify this as a demo or used car.

[watwat]

Was told by the sales lady during our phone conversation that it is a demo car even though it is used for 2 yrs since it has 30K mileage maybe driven by dealer executive.I'll reconfirm with her Monday.But if it was driven by the dealer executive will it be counted as a demo? not sure myself, so i think the incentive wouldn't apply then? And would it apply for a 2012 demo? Thanks.

[msqrade]

That's a lot of mileage. Anything over ~200-500km is not a 'demo' car, and even then.... I'd consider it a used car. Personally I'd consider an actual used car before a demo.

[Canuck2fan]

Sounds more like an employee car, which was probably a demo first then they let the employee use it. What dealership uses a two year old car to impress customers into buying one? Not too many I would think.

Offer them 3K less than the cheapest one you can find on autotrader or kijiji, see if they are serious about selling it. Most likely they received a ton of rebates/incentives from GM on it already, and it doesn't owe them anything.... Ask to see the maintenance records as well.

[booblehead]

Are you kidding ... 30K and the dealer calls it demo. It's obvious be driven as a daily rental, salesman daily drive, demo ... all rolled into one. Think of the abuse of the car taken by different users for the last 2 yrs.

As a used car, it's considered to be a 2 yr old car and depreciated for about (at least) 35% off the orig MSRP. Therefore, no amount of cash incentive is going to outweigh the monetary loss in the car's current fair value.

Also, don't forget the orig. manuf. warranty started when the car is registered and in service 2 yrs ago and you could be buying the leftover months, unless the dealer is kicking in extended warranty coverage. Do make sure it's comprehensive type of warranty coverage.

[booblehead]

If you are turning your attention to a MY2012 demo, you have to think of:

normally, as a demo, dealer cannot charge you freight/pdi, therefore, you have saved close to $1500 - $2000.
factory warranty started on the day the car is registered and in service, lost out on the orig coverage time period

If you insist a factory cash incentive be included in the demo, the dealer can do so but will have to add the frieght/pdi charges back (so to consider the car as 'new') which could cancel out any monetary benefits. Also, do check with your insurance company as this may affect how they would classified your purchase


Give us the full details on the MY2012 car you are looking at and put in on the forum and we will try to assist you in determing what's the fair value to offer on it.

[hondanation09]

I have some experience with this. Bought an Acura at the end of the year just before 2011. Car was driven by owner of dealership who was switching to MDX for winter. Literally dropped off at lot and was not even processed yet, had no price on it, guy still had his things in it. Black Acura had 5000km on it and yes i did get cash rebate at the time given for new car purchases which was $7000. Then I negotiated another $6000 off as I knew exactly what the car was worth since I was in negotiation with another dealership for same car in silver with 1000km. In end dealer refused to sell silver Acura with 1000km on it for my final offer as we were about $2000 apart. I made similar offer for black Acura at another dealership but took another $1000 off my final price plus car had windows tinted, winter protection package, floor mats, 2 free oil changes...took some negotiating but got deal done. By the time you calculate extra upgrades plus, cash rebate and discount for being slightly used I was looking at discount of about $14,200 off a new one.

With only 5000km on it well worth it. And it was 6 speed manual SH-AWD Tech...hardly a trim level they would use as a loaner car or car used for test drives.

You have to be smart about it. Is it a generic model or is a model that is the top of the line trim with upgraded this and that. Why would they use such a car as a loaner?

Any car that has not been registered by the province and given a plate and is still owned by the dealership or car company is considered a DEMO regardless of km. So if they are calling it a DEMO, then yes it is eligible for cash rebates/incentives. If they say no then walk away as the cash incentive would end up being straight profit for them coming from factory. But first I would negotiate a price before springing the case incentive on them.

[booblehead]

http://www.carpages.ca/search/used/y...ovince_code/ON

Looks like as a Used Enclave, the asking price by various dealers is around mid to high 30's. The Enclave is a fairly solid SUV as my friend has one, I believe it's 2009 CX - no leather.