[xMavrik]

Found a decent deal today

2017 230i xDrive
4,058 miles
price: $31,000

The dealer has it listed as a "demo car". They did include it as a CPO and I would be the first owner. Has anyone else bought demo and had bad experiences?

[ramy_who]

Originally Posted by xMavrik

Found a decent deal today

2017 230i xDrive
4,058 miles
price: $31,000

The dealer has it listed as a "demo car". They did include it as a CPO and I would be the first owner. Has anyone else bought demo and had bad experiences?

Mine was a demo. Nothing bad to say! Demos are usually fully loaded and the dealer is willing to discount because because the option list gets too expensive. You also don't have to pay for Freight & PDI. You also get an incentive for a few thousand clicks on the car. I think it's a no brainer!

[morphomeman]

Can you find a comparable used/pre-owned car listed anywhere? What is the price difference? What was the original list price on the car you are considering? All reasonable questions to get answers to before you pull the trigger. Also good ammunition for negotiation, so the dealer sees that you have done your homework.

[Sportstick]

Originally Posted by xMavrik

Found a decent deal today

2017 230i xDrive
4,058 miles
price: $31,000

The dealer has it listed as a "demo car". They did include it as a CPO and I would be the first owner. Has anyone else bought demo and had bad experiences?

Imagine the life this car has led. Sitting on a lot, and salespeople and customers repeatedly walk out to a cold car. Start it up, and how do people test drive BMWs?

I'd pass...

[xMavrik]

Originally Posted by morphomeman

Can you find a comparable used/pre-owned car listed anywhere? What is the price difference? What was the original list price on the car you are considering? All reasonable questions to get answers to before you pull the trigger. Also good ammunition for negotiation, so the dealer sees that you have done your homework.

The same dealership has another one at the same price but it has 8,000 miles on it. The car itself averages around $32-34k in the same condition as this one. So this is definitely a great deal as it is right now. Just wanted to gauge opinions on demos.

[BEM-S4]

Originally Posted by xMavrik

The same dealership has another one at the same price but it has 8,000 miles on it. The car itself averages around $32-34k in the same condition as this one. So this is definitely a great deal as it is right now. Just wanted to gauge opinions on demos.

If it's still leasable being a 2017 you could always lease it for next to nothing then give it back in 3 years. With exec demos it's an easy way to limit your risk exposure worst case you do some loaner driving and it's covered the whole time you have it.

[Sportstick]

Originally Posted by BEM-S4

If it's still leasable being a 2017 you could always lease it for next to nothing then give it back in 3 years. With exec demos it's an easy way to limit your risk exposure worst case you do some loaner driving and it's covered the whole time you have it.

That's a good thought which I overlooked, as I usually think in terms of buying/owning for a longer period. Warranty for the lease duration would make this far less of a risk.

[xMavrik]

Got back in touch with the dealer. No lease options available.

[BEM-S4]

Originally Posted by Sportstick

That's a good thought which I overlooked, as I usually think in terms of buying/owning for a longer period. Warranty for the lease duration would make this far less of a risk.

Did that w a car for GF try before buy was highly compelling.

[babaikram]

Buy it and do not fear, it would still be under warranty for the next 3 year and do extended warranty later. It would not command the same price as those of comparable year and mileage that have only one owners as you would be the second owner. So keeping it long term would preserve the savings you made buying it

[Maynard]

Is 31k really reasonable for a year-old 230? I'd think first year depreciation would hit harder than that. Don't think of it as a bargain on a near-new car (like the dealer wants you to), it is a used car to them. And personally, I'd pass for the reasons Sportstick noted in #4. Those test drives are the very worst way to go thru the break in period. I'd sooner look at a well-maintained enthusiast's car with 10x the miles on it.

[3rdcoast228i]

Originally Posted by Maynard

Is 31k really reasonable for a year-old 230? I'd think first year depreciation would hit harder than that. Don't think of it as a bargain on a near-new car (like the dealer wants you to), it is a used car to them. And personally, I'd pass for the reasons Sportstick noted in #4. Those test drives are the very worst way to go thru the break in period. I'd sooner look at a well-maintained enthusiast's car with 10x the miles on it.

Depreciation really depends on options, miles, and warranty. CPO car with an extra year of warranty is basically new car warranty.

I paid 32k I think for my CPO car, one year old with 4k miles and additional 100k mile maintenance. I think that was ok considering the car was about 40k new.

What really sucks is the continuing depreciation past that first year.

My 2016 BMW with 10k miles is going to be worth the same as my 2012 Wrangler with 68k miles soon.

[NVHoo]

With that many miles, the car was probably a service loaner. In any event, demos/loaners are more likely to be driven more aggressively than other used cars. Loaners are more likely to have been filled with regular gas rather than the specified premium. Also, they will have been washed/waxed far more than normal so look for swirl marks on the paint.

[BEM-S4]

Originally Posted by NVHoo

With that many miles, the car was probably a service loaner. In any event, demos/loaners are more likely to be driven more aggressively than other used cars. Loaners are more likely to have been filled with regular gas rather than the specified premium. Also, they will have been washed/waxed far more than normal so look for swirl marks on the paint.

You're wrong - dealers will disclose loaner if it's a loaner or exec demo if it's an exec demo. Two entirely different things.

[morphomeman]

Worrying about depreciation when you are not going to sell the car is like worrying about the market value of the house that you don't plan to sell for at least five years. All cars depreciate, more quickly at the beginning, and then more slowly. If you are worried about depreciation curves, buy a Honda. Or buy a three-year-old anything. That is the point when the curve usually flattens out.
My solution: buy a new car and keep it for a LONG TIME. Depreciation is not a factor in that case. The same applies to a spouse, if you are lucky.

[kivyee]

Originally Posted by morphomeman

My solution: buy a new car and keep it for a LONG TIME. Depreciation is not a factor in that case. The same applies to a spouse, if you are lucky.

Your spouse depreciates? Mine appreciates

Back on topic, one dealership I am familiar with up here in Canada definitely marked their cars as "demos" regardless if it was a service loaner or test drive mule. From a dealership operations perspective they don't really differentiate between demo and service loaner cars...there is a specific declaration when selling the car for whether if it's was a rental car (I.e. Alamo etc), but I don't believe a service loaner counts.

To the OP, an executive demo will not have been broken in properly, warmed up properly before thrashing and probably thrashed quite a bit, but also maintained properly and regularly cleaned (good thing inside, bad thing for paint). Are they statistically more prone to problems later on in "life"? Probably not. I know for a fact sometimes "new cars" on a lot sometimes gets test driven if nothing else is available, and sold as new cars as long as they keep it within "delivery miles".

[FloydFan]

New poster here. I had a similar decision to make with a demo car. In the end, I decided against buying one. Here's how I approached it.

1) Get the car's VIN and purchase or research a VIN report to determine precisely when the car arrived at the dealership, if the car has ever been owned before, etc. This is important because the longer the car has been sitting with the dealer, the more you should argue that it is depreciated. It's a MY2017, but for all you know, the car might have been there since say January 2017 and produced in October 2016. I'm just using those dates as examples, but the VIN report will list when the car arrived at the dealer. It's reasonable to assume that the car arrived two or three months after production unless it went elsewhere. In that case, it behooves you to find out where and why. Now you have a pretty reliable estimate of how old the car is. If the car has been on the lot for over 10 months meaning that it was produced over one year ago, it should be at least 15% - 20% of MSRP for that alone I'd think. Each additional month should be 1 - 1.5% more. I think MY2017 production for 2-series began in July 2016, so the car could literally be two years old already!

Mileage should be about $.20 per mile off the top as well.

2) Check with BMW Car Club to see if the car is still eligible for the new car rebate. If you give them the VIN before purchasing the car, they can verify for you.

3) Don't kid yourself into thinking the car was treated "well." It probably has had cheap gas for most of its life, heavy feet on the breaks, possibly smoked inside it, etc. Not to say that it's a pile of junk, only to put you in the frame of mind that, hey, anything can happen. You're the one taking the risk. Warranty or not, you don't want the car in the shop more than on the road. Chances are that the car will be fine, but still. If the dealer doesn't sell the car, it is likely going to auction. I can't help but think that at some point, a dealer likely resigns itself into thinking a demo car is destined for auction and that it isn't worth investing too much more in. If a storm is coming and its either a demo or a new car getting the last covered spot, then the demo had better have its umbrella handy. That sort of thing.

4) Verify that the car is covered under Ultimate Maintenance Program and when that program will end for the car. It is my understanding that the maintenance program begins when the car enters service or when it is sold to a customer whichever comes first. If the maintenance program on the car started 6 months before you purchase it, that's 6 fewer months for you. I believe you can purchase additional time, but that price should be taken into account. Check the tires too and adjust price accordingly as well. Etc

5) Is it an "As-Is" warranty? You will have the factory warranty, but the dealer might only offer a warranty as-is just like a used car. Remember that for all intents and purposes, this is a used car you are considering. It's only "new" in that it has not been titled to a customer before. If a dealer installed option for example falls off the car down the street, you are on your own if it's as-is.

In the end, I think there is a right price for a demo car, but it's not easy to get it for that price. I felt that no matter what, I was somehow going to overpay substantially for the car and taking too many various risks. It is still a used car. I decided instead to buy/order a new car. I know people who have had no issues whatsoever with a demo car. There are bad experiences out there though. Good luck!

[xMavrik]

Thank you all for the great advice. I was able to negotiate down a little and they gave 1% financing!!!

Now its a matter of finding the black M rims and Im good to go.

[blackbm5]

Originally Posted by xMavrik

Thank you all for the great advice. I was able to negotiate down a little and they gave 1% financing!!!

Now its a matter of finding the black M rims and Im good to go.

Attachment 1856131

Looks good and welcome to the winning team. I believe you did a pretty good job. Did the dealer throw in an extra year and mileage towards warranty? Many times they do that when it is CPO. I am looking forward to the mods and upgrades.

[tennisfreak]

I think the more important issue here is ITS A 230!!!

You're 10 short on the right model number

[xMavrik]

Originally Posted by blackbm5

Looks good and welcome to the winning team. I believe you did a pretty good job. Did the dealer throw in an extra year and mileage towards warranty? Many times they do that when it is CPO. I am looking forward to the mods and upgrades.

CPO has me covered up to 5 years unlimited miles as it is. May look into extended warranty to cover all the things regular CPO doesn't.

[Vitacura]

Very nice, Congrats! My current 2 series was a demo and I have no regrets on picking it up.