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Discussion Starter · #1 ·
May have a chance at an Enclave with almost perfect configuration for us, used by dealer relative for 2000 miles. If I can already buy new at invoice, what is a reasonable deduction for the demo aspect of this car? I really like to put my own mud on the mats from the outset, but am trying to figure out how much enticement it would take to pull the trigger on an Enclave already in town. You fellow researchers can help. Thanks.
 

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If it hasn't been titled then they will sell it as a demo. From my experience they don't typically offer enough money off to warrant taking a vehicle with miles on it. I'd say a good starting point would be a $0.50/mile driven discount so that's only $1000. I personally would consider it a used vehicle and want at least $3000 off invoice price.
 

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Discussion Starter · #3 ·
BadAV said:
If it hasn't been titled then they will sell it as a demo. From my experience they don't typically offer enough money off to warrant taking a vehicle with miles on it. I'd say a good starting point would be a $0.50/mile driven discount so that's only $1000. I personally would consider it a used vehicle and want at least $3000 off invoice price.
Actually, BadAV, that's about what I was thinking. To really make it palatable, I was thinking maybe $4000 below invoice, since they have ways of depreciating or other write-offs that would allow them to expense the "loss" if the car was sold very far below invoice. Additionally, I'm thinking it would allow them to receive an additional allotment if one they have had for a few months was sold. I'm interested in others' ideas, of course.
 

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I have heard that dealers get an "allowance" from manufacturers for "demo" vehicles, to the tune of $5,000 or more I believe. You should not settle for much less than $4,000 below invoice IMO. But the Enclave is hot and dealers may consider this. If another dealer is looking to "trade" for this particular vehicle, you may not have as much room to maneuver.

I like the $.50/mile or more depreciation approximation or some such to figure out your best price too.

TM
 

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Things to consider. As the vehicle is considered a 'demo' the applicable taxes would have been absorbed by the dealer, which to you as the consumer, might save you a hundreds of $$ versus purchasing new.
Secondly, instead of squabbling soley over price, try to negotiate other intangibles, such as free scheduled oil changes or a couple years subscription to XM and or OnStar.
 

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Discussion Starter · #6 ·
hoobeboo said:
Things to consider. As the vehicle is considered a 'demo' the applicable taxes would have been absorbed by the dealer, which to you as the consumer, might save you a hundreds of $$ versus purchasing new.
Secondly, instead of squabbling soley over price, try to negotiate other intangibles, such as free scheduled oil changes or a couple years subscription to XM and or OnStar.
Could you explain more how applicable taxes can be absorbed by the dealer -- one still pays sales tax; please explain. Thanks.
 

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Discussion Starter · #7 ·
Tin Man said:
I have heard that dealers get an "allowance" from manufacturers for "demo" vehicles, to the tune of $5,000 or more I believe. You should not settle for much less than $4,000 below invoice IMO. But the Enclave is hot and dealers may consider this. If another dealer is looking to "trade" for this particular vehicle, you may not have as much room to maneuver.

I like the $.50/mile or more depreciation approximation or some such to figure out your best price too.

TM
Tin Man,

How did you hear about the $5000 compensation for "demos?" If true, this info could have a profound impact on negotiations. Thanks.

Bill
 

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Not sure about the $5,000 figure, but their is definitely some compensation for certain demos. From the GM employee discount FAQ:

Are dealer demonstration vehicles included in this program?
Yes, if the vehicle has less than 7,500 miles and a dealer demo allowance has not been paid on the vehicle. See your dealer for details
 

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blurrybill said:
Tin Man,

How did you hear about the $5000 compensation for "demos?" If true, this info could have a profound impact on negotiations. Thanks.

Bill
I don't know any more about it, but have priced demos before and was offered some pretty decent discounts, but I don't remember how much it was. I know there is a bone to the dealer by the manufacturer for demo's.

TM
 

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There is definitely some allowance. I almost purchased a 2007 Tahoe over the enclave and its sticker was 45000 and they had it knocked down to 38000. It had roughly 5200 miles on it. So Im sure 5000 is close to the allowance provided. I definitely wouldn't accept at least 4000 plus some incentives on the vehicle. Good Luck! here is a link to a used one with 2200 miles on it...it is a cXL model marked down, mind you this is used but at least a reference...... http://autos.yahoo.com/used-cars/bu...polis, MN 55415&distance=300&listingtype=used
 

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I bought a Chrysler 300 demo a couple of years ago with 3000 miles on it from a Florida dealer. This car was loaded. The dealer cleaned this car up so well it was indistinguishable from factory-fresh. Not a fingerprint on the thing, not a smudge or a scuff. The sticker was $33,000 and change, and I got it for $27,900. I'm still happy with the deal. Not only that, but it came with Sirius satellite radio and I've never gotten a bill (it's been 2 1/2 years).

So the moral of the story is, if you can buy a demo that's like new and that is priced with all the depreciation gone, it's a good deal. At least that's the way I think.

Big Larry
[/color]
 

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I'm going to agree with Big Larry. (That first sentence makes me laugh. Anywho.) Economically speaking, a car has its most rapid depreciation in the first two years. Buying a two - three year old used car makes sense financially. A demo is a great way to go if the pricing is right. You're ahead of the game because of the mark down in price but you still get your full 48,000 mile warranty because technically the car is still new.

We bought our Envoy as a demo with 6,000 miles on it and have been perfectly happy with the purchase. I don't remember the particulars but the Envoy had a MSRP of 34,900 and our final price after discounts and tt&l was 24,000. (5,000 rebate & GM earnings included)
 

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Careful there, Axiama. You start agreeing with me, and you're going to find yourself alone, bitter and friendless (except for me, of course).

Big Misanthropic Larry
[/color] :p


axiama said:
I'm going to agree with Big Larry. (That first sentence makes me laugh. Anywho.) Economically speaking, a car has its most rapid depreciation in the first two years. Buying a two - three year old used car makes sense financially. A demo is a great way to go if the pricing is right. You're ahead of the game because of the mark down in price but you still get your full 48,000 mile warranty because technically the car is still new.

We bought our Envoy as a demo with 6,000 miles on it and have been perfectly happy with the purchase. I don't remember the particulars but the Envoy had a MSRP of 34,900 and our final price after discounts and tt&l was 24,000. (5,000 rebate & GM earnings included)
 

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I also got a great deal on a demo. I had a beautiful Montero that prior to the enclave was the nicest riding SUV I have ever owned. Anyway, it had 3500 miles on it that the owner of the dealership had put on. It was towards the end of the model year, fully loaded, extras such as bug deflector, mud flaps, rear wind deflector etc. It had some surface scratches, they had it at about 3000 off of invoice, I got it for 7500 off, as well as free oil changes for life and free car washes for life. They fixed all the scratches for me so well I could not see them and detailed the inside like new. I think this is a great way to get a good deal on an expensive vehicle.

and yes, I too am agreeing with Big agreeable Larry. PS. Big Larry, I won't even let my kids wear their seatbelts, makes em tougher :thumb: :thumb:
 
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