Key Takeaways:

• Dealer demo cars can be a great way to get a nearly new vehicle without paying full price.
• Make sure you understand the warranty and Lemon Law protections before you buy.
• If your demo car starts having problems, there are steps you can take to protect yourself.

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Are you thinking of buying a dealer demo car? These vehicles can be a smart way to get a nearly new car without paying full price, but there are a few things you should know before making a decision. Learn more about the benefits, potential drawbacks, and what to do if your demo car starts having problems below!

What Is a Demo Car?

A demo car, short for demonstration vehicle, is a car the dealership owns and uses for test drives, showroom displays, or sometimes as a loaner for customers. They’re usually driven by sales staff or potential buyers who want to get a feel for the car before deciding to purchase. 

Since demo cars do have some miles on them, they’re typically priced lower than a brand-new model, but they’re also well cared for and kept in great condition.

When Is a Dealer Demo Considered a New Car?

In California, a dealer demo can still be classified as a new car under specific conditions. According to state regulations, the vehicle can’t have ever been titled or registered to anyone other than the dealership, it must still be under the original factory warranty, and it should have relatively low mileage, usually under 7,500 miles.

When Is It No Longer Considered New?

As mentioned above, a demo car loses its “new” status once it’s been titled or registered to a private owner. It can also be classified as used if it has high mileage, shows noticeable signs of wear and tear, or has needed major repairs or replacements.

Does a Dealer Demo Get a Full Warranty?

Yes, most dealer demo cars still come with the full factory warranty, just like a brand-new vehicle; this means you’re covered for defects or issues during the warranty period.  

The main things to pay attention to are the start date and coverage details. In some cases, the warranty begins when the dealership first puts the car into use, not when you purchase it, which can shorten the overall coverage period. It’s also always a good idea to review the terms closely so you know exactly what is and isn’t included. 

Are Demo Vehicles Titled?

No, demo cars are usually owned by the dealership and haven’t been titled to a private owner before being sold. When you buy one, you’ll register and title it in your name, just like you would with a new car. And once the sale is complete, the dealership is responsible for providing the documents needed to transfer ownership to you. 

Buying a Demo Car: Pros and Cons

Purchasing a demo car can be a smart move to save money, but it’s important to understand both the benefits and potential drawbacks before making a decision.

Pros of Buying a Demo Car

• Cost Savings: Demo cars are usually priced lower than new vehicles, which could offer an opportunity to buy a nearly new car for less. 
• Warranty Coverage: Most demo vehicles still come with the original factory warranty. 
• Well-Maintained: Since demo cars are often used for test drives, they’re typically well cared for and regularly serviced by the dealership. 

Cons of Buying a Demo Car

• Potential Wear and Tear: Depending on how the car was used, there may be minor wear and tear that could affect resale value. 
• Limited Incentives: Demo vehicles may not qualify for the same promotions or rebates as new cars. 
• Warranty Start Date Confusion: You’ll need to confirm when the warranty actually begins. 

What Should You Do If Your Demo Car Has Defects?

If your demo car is having repeated problems, taking the proper steps early can protect your rights and help resolve the issue. 

Steps to Take If Your Dealer Demo Acts Like a Lemon

1. Document Everything: Keep detailed records of repairs, including dates, mileage, and descriptions of the issues.
2. Communicate with the Dealer: Let the dealership know about the defects and give them a reasonable chance to fix the problem.
3. Get a Second Opinion: If the dealership is unable to resolve the issues, consider getting an independent mechanic’s evaluation to support your case.
4. Know Your Rights: Familiarize yourself with your rights under California’s Lemon Law, which may entitle you to a refund or replacement vehicle if the defects persist.

Does California Lemon Law Apply to Dealer Demo Cars?

Yes, California’s Lemon Law, officially called the Song-Beverly Consumer Warranty Act, can apply to dealer demo cars in certain situations. The buyer may have legal options if the vehicle is sold with a manufacturer’s warranty and develops serious problems that affect its safety, value, or performance. The law generally applies when the dealership can’t fix the issue after a reasonable number of attempts and the problems come up within the set timeframe, usually 18 months or 18,000 miles, though there are sometimes exceptions. 

Keep in mind that not all vehicles will qualify. That’s why it’s best to contact a lawyer. Even if you’re still deciding whether to buy a demo car, you can reach out for a free consultation to see what protections or compensation you might be entitled to.

Need Advice About California’s Lemon Law? We Can Help

If you purchased a 2020 or newer demo car in California and it’s giving you trouble, you may still be protected under the Lemon Law. The process can feel complicated, but that’s where we come in. At Norman Taylor & Associates, we focus exclusively on Lemon Law cases and know how to stand up to manufacturers. 

If you think your demo vehicle might qualify as a lemon, call 818-244-3905 or reach out today to schedule your FREE, no-obligation consultation. 

Schedule my consultation

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✓ Content checked by the lemon law attorneys at Norman Taylor & Associates