Question: Would a 2007 auto,which has never been sold, be considered a new car or a used car with low mileage? Hasn't it lost retail value after sitting on the lot for a year?
Answer: A vehicle is considered legally new if it has never been titled. However, from a practical standpoint, a leftover 2007 model that has been used as a demo vehicle probably has some pretty hard miles on them, even if they are not a lot of them. In addition to losing value due to mileage and wear on components such as brakes and tires, a 2007 model year vehicle is already a model year old, and value would certainly be deducted for that factor too...
For me, a leftover previous model year vehicle with demo miles on it is like a used car. You will not have the chance to break it in as you might a new car, you don't know how the previous driver or (most likely) drivers treated it, you would not know if it has had any body work repaired due to minor parking lot mishaps...basically there are lots of unknowns. You have to decide if the price you will pay is low enough to overcome all of these unknowns, and that is a judgment call only you can make for yourself.
One time I was in a Nissan dealer and they had a fully loaded Murano on the showroom floor. It was labeled as the "Owner's Vehicle" and it had been adorned with just about every accessory out of the Nissan parts catalog including running boards, push bars, wood trim and headrest DVD players. I got to talking with the sales manager and he later confided in me that the vehicle had been previously stolen off the lot and had been recovered, but with significant body and interior damage. An extreme example, to be sure, but it just shows what is out there in the world of demo models.
If you do decide to purchase a demo, there would be the question of what to pay. I would never offer more than the invoice price, minus all available dealer and/or customer cash and then subtract $0.30/mile. It is also important to confirm that the warranty will start from the date of purchase and will be in effect for the full time and/or mileage for the particular vehicle in question.
http://blogs.edmunds.com/strategies/2008/01/question-of-the-day-buying-demonstrator-models.html
Answer: A vehicle is considered legally new if it has never been titled. However, from a practical standpoint, a leftover 2007 model that has been used as a demo vehicle probably has some pretty hard miles on them, even if they are not a lot of them. In addition to losing value due to mileage and wear on components such as brakes and tires, a 2007 model year vehicle is already a model year old, and value would certainly be deducted for that factor too...
For me, a leftover previous model year vehicle with demo miles on it is like a used car. You will not have the chance to break it in as you might a new car, you don't know how the previous driver or (most likely) drivers treated it, you would not know if it has had any body work repaired due to minor parking lot mishaps...basically there are lots of unknowns. You have to decide if the price you will pay is low enough to overcome all of these unknowns, and that is a judgment call only you can make for yourself.
One time I was in a Nissan dealer and they had a fully loaded Murano on the showroom floor. It was labeled as the "Owner's Vehicle" and it had been adorned with just about every accessory out of the Nissan parts catalog including running boards, push bars, wood trim and headrest DVD players. I got to talking with the sales manager and he later confided in me that the vehicle had been previously stolen off the lot and had been recovered, but with significant body and interior damage. An extreme example, to be sure, but it just shows what is out there in the world of demo models.
If you do decide to purchase a demo, there would be the question of what to pay. I would never offer more than the invoice price, minus all available dealer and/or customer cash and then subtract $0.30/mile. It is also important to confirm that the warranty will start from the date of purchase and will be in effect for the full time and/or mileage for the particular vehicle in question.
http://blogs.edmunds.com/strategies/2008/01/question-of-the-day-buying-demonstrator-models.html
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