Wednesday, March 29, 2023
HomeFeatured ArticlesAll About Demo Cars in India | Should You Buy One?

All About Demo Cars in India | Should You Buy One?

Imagine this, you have had your eyes stuck to a new ride which was recently launched, but you are waiting for your savings shoot up a bit. However, it’s been like a year now and you still haven’t got your savings at par. Meanwhile, the car you had your eyes on also got a minor upgrade (probably a facelift or something).

Factory Second Maruti Suzuki WagonR
Factory Second Maruti Suzuki WagonR

So, if you too are under similar circumstances, what should you do? Should you settle for a car from a segment below that fits your budget?

Must Read: How to Save Up to 25% on a Brand New Car straight from the Factory!

Actually, you don’t need to do that, as you might have an option of buying a “demo car” of the same model you have been wanting to own. You can get a demo car for a much cheaper price than a brand new car.

What is a Demo Car (Test Drive Car)?

A “demo” or “demonstration” car, also known as a Test Drive car is one example from the lot of a particular car model which the dealership uses to either place on the showroom floors for the potential customers to experience the vehicle in and out or to use it as a test drive vehicle for the customers to take it out for a spin. Test Drive cars are also used as official vehicles for the dealership and are used by the sales executives and other officials for dealership related purposes.

Ex-Showroom vs On-Road Car Prices In India
Maruti Suzuki Baleno at a Nexa Showroom

A demo car is usually a top-spec variant of a particular model as the dealership looks to highlight everything that car has on offer and to get the customer familiar with all the features and essentials the car has before their actual buy.

Can you really buy a Demo Car?

Depending on the types of dealerships and also the type of car brand, there are certain routines followed when it comes to replacing a demo car with a new one at a dealership.

Featured: The Difference Between Ex-Showroom Vs On-Road Car Price In India

Here are some scenarios in which a demo car is replaced at a dealership :

  1. In the case of the next generation of a vehicle comes in
  2. There is a facelift or minor changes to the existing variant
  3. Especially in the case of premium car brands, dealerships are instructed to replace the Test Drive car with a new one at regular intervals (of around 3-6 months) despite having no changes to the existing model.
Ex-Showroom vs On-Road Car Prices In India
Maruti Suzuki Baleno at a Nexa Showroom

In such situations, dealerships decide to put a “for sale” board on the old demo cars and that is when customers actually have a chance to opt for a decent demonstration vehicle at a much reasonable price instead of paying an extra premium for a “bubble-wrapped” new car. So while planning to buy your next car with a rather restricted budget, you should reach out to the nearest dealership of the car you are looking for and you might be able to find a situation iteration of the car at a price that is fit for you.

Also Read: Buying a Second Hand WagonR? Here are the 10 Problems you should look out for

Getting your hands on a good Demo Car is not as easy as walking into a dealership and buying an all-new car. Availability of a Demo car is not that frequent, it is only in the above-mentioned situations when the dealership decides to put a Test Drive car up for sale. Hence, keep an eye out for such opportunities.

Is it wise to buy a Demo Car from the Dealerships?

Buying a demo car comes with its fair share of benefits and downsides, it is ultimately subjective to what utility you want your vehicle to fulfil for you and at what cost. Here are some of the pros and cons of buying a demo car.

Maruti Suzuki Delivers Over 5,000 Vehicles Post Coronavirus lockdown Relaxations
Maruti Suzuki Showroom

Pros of Buying a Demo Car

  1. Getting to be a first owner car at the price of a used car
    The prime reason people opt for a Test Drive car is to enjoy the ownership experience of a new car at the price of a used car. Demo cars are mostly unregistered cars used by the dealerships and once they decide to let them go, the next owner becomes the first person in whose name the car is registered. The biggest advantage in this being that the market value of the car remains intact which in the case of having a second owner to its name certainly takes a hit.
  2. Less driven than a used car
    Demo cars usually much less driven than a second-hand car. Take any used iteration of the same model from the same model year and you’ll see that the second-hand car will have a bigger number on the odometer as compared to the demo car.
  3. You a get top-spec variant for less money
    Demo cars are always the top-spec variants of the car, hence while buying a demo car you always get a top-spec variant but at a price much less than the on-road price of a new top-spec car. Hence, there won’t be any compromises there.
  4. A Demo Car is a refurbished car
    Before putting it up for sale, the dealership makes the demo car goes through a refurbishing process to clear off any signs of past usage that there are on the car. Dealerships try their best to make the demo car look and feel as new as an unused car.
  5. Comes with a Warranty
    Dealerships who sell these demo cars make sure to insure the car by providing an extended warranty to the customer. This can either be paid for or is provided complementary by the dealership based on the deal you get from them. So peace of mind is also guaranteed while buying a demo car.

Suggested: 10 Best Used Second-Hand Cars Under 75k | Thrifting & Driving

Cons of Buying a Demo Car

Ex-Showroom vs On-Road Car Prices In India
Honda Cars Dealership

If you dive in further and compare a demo car with buying a new car, you will come up with various downsides of buying a demo car.

  1. Numerous Drivers
    A demo car has to go through a lot of scrutinies from multiple potential customers when they take it out for the test drive. These so-called experts don’t really tackle the car in a decent manner, to be honest. Hence the condition of the car takes a good beating. However, in certain cases, it is not that bad, especially when the car is an exhibit on the showroom floor or is just used by the dealership officials.
  2. It is still significantly driven
    Comparing it to a used car, you’ll find a demo car to be less driven but it is a significant number of kilometres when compared to a new car. You do get the demo car for a cheaper rate but that comes at the expense of being driven for some thousand kilometres and by numerous drivers having distinct driving ethics.
  3. Shorter Warranty Period
    Though a demo car comes with an extended warranty period from the dealership the coverage is for a very short period as compared to what you get for a new car.
  4. It’s still an Old Car
    In most cases, a demo car goes on sale when the model receives a new upgrade. Hence the car you’ll buy would probably be a slightly dated version of the car.

How much could you save on a Demo Car?

The only reason one will opt to buy a demo car is to refrain oneself from spending way too much on a new car. So the price difference is a key element. However, this factor is also subjective to the segment of the car you are looking for and the price range the car falls under.

Cars from the premium segment have a much bigger price difference between a demo car and a new car. This price difference may not be as significant in the case of economy cars.

Hot! 10 Not-To-Buy (Worst-Rated) Second-Hand Used cars in India

In the case of premium cars, the price for a demo car could be Rs.5-7 Lakhs cheaper than a car straight off the factory line. This difference could come down to Rs.1.5 to 3 Lakhs, in case of slightly less premium or an economy car.

Also to keep in mind that one can always save more by negotiating a nifty deal with the dealer as the price quoted by the dealership on a Test Drive car may not be the what you should actually be paying for the car. Hence, further negotiations are always on the table and could save you a deal of money.

Things to Check while buying a Demo Car

New Car PDI (Pre Delivery Inspection) And Checklist
Volkswagen Ameo Delivery
  1. Checking the engine condition, paying attention to the engine sound
  2. Checking the underneath of the car for any damages
  3. Chassis bent or repairs scrutiny
  4. Condition of the body paint, dents and scratches
  5. Stains on the interior fabrics
  6. Fit and functioning of the plastic bits

Even though the dealership takes care of all these things for you and they do a proper revamp treatment on the car. But it is always wise to scan the whole vehicle for any imperfections on your part as well.

Up Next! New Car PDI (Pre Delivery Inspection) And Checklist

Other than that the standard checks for the service record and reviewing the overall history of the vehicle is a must as well.

Amidst all the options in the world that you have, while looking for a new car, Demo cars are also an option worth considering.

Subscribe To The GoMechanic YouTube Channel

Vaibhav Arora
Vaibhav Arora
Content Developer at GoMechanic | Auto Journalist | Been a car guy ever since i remember opening my eyes | Golden Age for cars is long gone | Guilty of hooning out on the streets |


    • Hi Sibesh

      The demo cars are usually available at the brand authorised used car dealerships. However, they may not be available all-round the year. We would request you to contact your nearest dealership to confirm the availability of the same.

  1. Is Volkswagen comfortline MPI petrol demo car worth to buy for 7L? 5000kms driven , and vehicle is in perfect condition. 2020 model.

    • Hi Rohit,
      Firstly I’d like to highlight that Volkswagen Polo MPI comes with a 1.0-litre naturally aspirated petrol engine. This means it’s low on power and also is deprived of features (because of comfortline variant). Now, if ₹7 Lakhs is what you are willing to spend, you can get way better cars at this point. Cars from manufacturers like Tata, Maruti Suzuki, Hyundai and Ford, that by and large offer a more powerful engine with all the basic as well as advanced amenities that the Polo 1.0 MPI lacks. But still, if Volkswagen is what you want to own, it is a good deal. But Do check the engine condition of the vehicle as demo vehicles may or may not be abused. Hope this helps, stay pinned! 🙂

  2. Ford freestyle 2020 manufactured, top end model : Titanium+, 6600 Kms driven at a price of 7.5 L sounds a good deal? Shall i go for it. pls provide your feedback.

  3. Jeep Compass
    Diesel Automatic Model S
    Feb 2022
    Demo Car
    Run 2500km

    Offer 34 L

    Current market price 38L

    What should b ideal deal??

  4. Im getting a demo car Skoda kushaq style model 1litre petrol engine with 8000km driven in 16.5lakhs…
    Is it worth buying??
    Plz suggest

    • For Test Drive cars, it’s not about the kilometre reading; the main concern is that almost all Test Drive cars have been abused by Dealers and Potential Buyers. We advise you to get the car comprehensively checked for body, mechanical and engine issues.

  5. What would be the right price for a 1.5L Taigun demo car done 7500km about 1 Yr old? Wondering if it has done long distance test drives. Considering the insurance will also be due shortly, the on road price quoted 18.5 as against original BSP OF 21.5L.

    • Hey Alok,

      First, we suggest you tread very carefully before purchasing a demo car. Demo or TD (Test Drive) cars are driven in various situations and by various people alike. Also, most Demo cars are also used by staff members for long drives to plants or godowns and take a hell lot of abuse and beating. You wont be able to figure out any internal or mechanical damage just by first look. We suggest you to take an in-depth drive and get the car thoroughly inspected by experts (who are known to you).

      Let us know what the dealership is quoting for the Taigun 1.5.

  6. Hey
    I am getting a Maruti Suzuki S Presso VXI plus AT car 2021 model Demo car .. 102 kns driven.. at 5.40 plus insurance.
    Current Marketprice is 6.44 .. what do you suggest ?

  7. Demo Car Tata Harrier XZ+ Camo 2021 Feb, 7000 km, manual
    Engine vibration at start up only and a bit of noise
    Price asked: 18 lac on road
    I guess on road for new car is 25lacs

    Is it a deal?

    • Hey Vaibhav, we’d suggest you to get the car checked by a trusted mechanic, GoMechanic workshops can help you with that. If the condition of the car is all okay, it is a fair deal.

    • Hi, to help you decide whether it is a good deal, we suggest you take your car to your nearest GoMechanic Workshop, where our dedicated team of professionals will help you with the car inspection.

  8. VW dealership is quoting 21L for Taigun 1.5L automatic demo car. It has been driven for 8000 kms and has 3 years warranty remaining.
    I have a friend who runs a car service center, so getting the demo car checked thoroughly is not an issue.
    How much do you think should be the maximum that I pay for the demo car?

    • Hi Sammeera! A brand new VW Taigun 1.5L automatic will cost you around Rs. 21-23 Lakhs, depending on which state you live in, and this would be a better choice! However, if you’re focused on the demo car, a minimum of 15% discount is what you should ask for

  9. Ankit November 27, 2022 At 6:37 PM
    I am getting a Maruti Suzuki S Presso VXI plus AT car 2021 model Demo car .. 102 kns driven.. at 5.40 plus insurance.
    Current Marketprice is 6.44 .. what do you suggest ?

    AutoJunkie November 30, 2022 At 11:59 AM
    Hey Ankit! You should have the car checked by a trusted mechanic and verify if there are any issues.

    Reply – How is the deal, the car is absolutely fine, I checked it with the dealer, So is it a deal worth investing ?

  10. Hi
    In Hyderabad, I am getting a Honda City ZX MT, petrol in 13.5 L . This is demo, unregistered car driven almost 20k kms and August 2020 manufactured. In a way this vehicle will count like three years old( hit on my resale value) even though i will be the first owner.
    Please advise and is the price offered good or more negotiations, as it’s almost 3 years old and 20k km driven


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Trending Articles

GoMechanic Newsletter

Subscription Form (#3)