When looking to purchase your next vehicle, the first thing you’re going to need to consider is whether you want to buy a new vehicle, a dealer demonstrator (commonly referred to as a demo) or a used car. Although you’ll find overlap between the options, each has its own benefits and things to consider, and you’ll probably find that one particular type best suits your needs. In this piece we’ll be exploring the difference between new vehicles, demos, and used cars, as well as things to note when buying each type of vehicle, so you can more easily decide which is right for you.
New Vehicles
New cars are sold exclusively through dealerships and have never been owned before. While the vehicle will have been driven for safety testing and moved around the lot at the dealership for display purposes (and getting it ready for you to collect), you can expect a new vehicle to have low kilometres on the odometer and be in perfect condition.
New vehicles come with a factory warranty and will often also offer capped price servicing, inclusions such as complimentary roadside assistance, and other benefits that a dealership offers with cars purchased from them. This means you can expect lower maintenance costs and enjoy extra peace of mind in terms of the quality and longevity of your vehicle.
You will, however, pay a premium for these benefits in comparison to demonstrator vehicles and used cars, and buying brand new may mean having to wait for your preferred model and colour to come into stock.
| Benefits of buying a new car | Things to keep in mind when buying a new car |
|---|---|
| – You’re the first owner of the vehicle – You can expect the car to be in perfect condition – You receive the full factory warranty – You get the latest safety features – The vehicle will have next to no kilometres on it – Benefits like capped price servicing, complimentary roadside assistance and other dealer perks are included | – A new vehicle will generally cost significantly more than an older version of the car – You may have to wait for stock to become available in order to purchase your new vehicle in your preferred configuration |
Dealer Demonstrator Vehicles (Demos)
Demos can be considered either new or used depending on what side of the debate you fall into. While a demo vehicle will have never had an owner, it will have been registered and driven prior to becoming your car. Dealer demonstrators usually have a couple of thousand kilometres on the odometer as they’re used for test drives, and although every effort is made to keep the vehicle in as new condition, you will need to account for the fact that there will be some wear to the tyres and car will be closer to needing a service than a brand new vehicle would be.
Having said that, a demo is the same as a new vehicle in all other ways apart from the price tag, as buying a demo can save you thousands, but you’ll still enjoy all the new car perks. This means that you’ll receive a factory warranty (although it may be a little shorter as many warranties are activated when the vehicle is first registered), can take advantage of capped price servicing, and will enjoy any other perks that the dealership chooses to throw in with the purchase of your demo vehicle.
It is important to note that demos are generally still either the latest model vehicle available or one model back, so you’ll also enjoy the best safety features and comfort additions.
| Benefits of buying a demo | Things to keep in mind when buying a demo |
|---|---|
| – New car benefits, without the new car price tag – You’re the vehicle’s first owner – Factory warranty and capped price servicing apply – Best safety features and interior additions | – Factory warranty may be shorter – Tyres will most likely have a little wear – Vehicle has been driven for test drives and is therefore no longer “new” |
Used Cars
A used vehicle is often the most budget friendly purchasing option available, and given that the car is new to you, you’ll still get that new car feeling. Buying a used vehicle can be particularly advantageous for those looking to purchase their first car or hunting for a cheap runaround. You may also find that used is a better option for you if you’re looking to set a vehicle up for work or weekend adventures, as some used cars come with accessories and modifications that you would otherwise need to fit yourself.
The amount of features and safety inclusions that the vehicle offers will depend heavily on the year of the car that you’re buying, as well as the option package that was fitted to it when it was new. While some newer used vehicles will come with the balance of the factory warranty and capped price servicing if the kilometres are low enough, this is not the case for all used vehicles, especially older ones, so it’s important to consider the increased maintenance costs.
Used cars can be bought either privately or through a dealership. If you are buying through a dealership you will receive the vehicle in sound mechanical condition and it will generally have a roadworthy certificate for your peace of mind. Those looking to buy privately should ensure that they have a trusted mechanic look over a vehicle before making any decisions as the condition of the vehicle will be mostly unknown.
It is also important to remember that a used car will not have the same longevity as a new vehicle as it has already lived a life before coming to you.
| Benefits of buying a used vehicle | Things to keep in mind when buying a used vehicle |
|---|---|
| – Cheaper to purchase – May have desired accessories and modifications already fitted – Great for first cars – Generally still reliable as long as the vehicle has been cared for properly and checked over before purchase | – One or more previous owners – Usually no new car warranty or capped price servicing – Increased maintenance costs – Potentially unknown vehicle condition – Shorter lifespan given advanced age when purchasing |
When you purchase a used vehicle from Freeway Motor Group, you’ll receive top quality customer service, a pre-loved car that’s in great shape and warranty coverage from the dealership. This allows you to purchase with complete peace of mind and know that your new to you vehicle is going to withstand the test of time.
So, those are the main differences between new vehicles, demos, and used cars. Regardless of what type of vehicle you’re looking to purchase, Freeway Motor Group can help. With 11 dealerships, seven brands, and four locations – Cranbourne, Frankston, Lilydale and Mornington – plus a suite of used cars available across our sites, our friendly team are sure to be able to find the right car for your needs.
Browse our used car stock here, or reach out to your closest dealership hub to find your favourite new vehicle or demo.