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      01-16-2020, 05:59 AM   #35
Arbit
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Australia
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Drives: M2
Join Date: Nov 2019
Location: QLD

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Quote:
Originally Posted by ///Driver View Post
If a demo is discounted significantly beyond a discounted BTO vehicle, it can be a value proposition for some owners (i.e. someone who turn cars over regularly).

If the best price today for 2020 built M2`C in metallic paint is $103,000 drive away. A brand new 2019 M2C with no mileage would have to be $10,000 less (say $93,000 OTR). If the car is a demo with 3,000kms, I would want another $10,000 off the price (say $83,000 OTR) - I'm being generous here. Just the GST and LCT adds up more than $10k. I'm sure we all know how much depreciation there is on a $100k car the moment it is driven out of the dealership.

The demo car is a used car with low mileage. It was registered, and it was driven. The new car warranty is shorter too. Of course, the salesperson wants us to accept that a demo car is still new.
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I would like to know where you got the pricing idea (ie. 103-93-83k) .
I've tried several scenarios. I wonder if you could achieve 83K driveaway for 18 built.

The price of the demo/floor stock is discounted because it's not just from aging but the options/color choice was also limited. So someone who's flexible with option/color, buying one from their yard/floor is a great way to save.

When it's the time to sell my car after 5 years I don't expect the valuation gap is that great because there is no change in the spec and inclusions between the years.
The odometer number is the big part of the valuation.
If I sell it via private the next buyer is keen to know other factors.
How many Kms is the car done,
if the car was properly serviced,
if the car had been modded,
if the car had any accident,
if the seller is the first owner.

Having said that if I trade in at a dealer they don't care whether I bought a demo or floor stock or BTO. And don't forget the higher initial cost means bigger financing cost (compounded!)

Nonetheless, I agree with the idea that we should be wary of a demo whether it was
abused
I once had a built to order from Merc and the car had lots of issues, anyway.
And I had learned in hard way. The depreciation curve is the steepest for the built to order because the discount amount was the least.
Besides most BMW and Audi are depreciating fast.
Appreciate 0