I went to a dealership and found a new "demo" car for sale at a $4,000 discount. Is buying a "demo" car a good idea?

Dealerships are always trying to unload "demonstrators" ("demos") -- cars that were driven by the managers or salesmen but are still legally new. The car salesman may tell you that the "demonstrator" has been immaculately maintained since it was driven by an "executive." He may also assure you that you can get a far better deal on this car than you would get on a brand new car. Don't believe it.

While a discount of $4,000 may seem generous at first glance, my experience tells me that the selling price of a "demonstrator" car is often not much less than if you bought the same car brand new. And if you take into account the fact that there is considerable mileage on this "new" car (which gets subtracted from the mileage allotment of your Factory Warranty) and the fact that "demonstrator" cars often receive lots of abusive wear and tear that may not be noticeable at first glance, the "demo" suddenly doesn't seem so attractive.

Best Advice: avoid any offers to buy a "demo."

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