I've been shopping for a 2001 Lexus RX300, but after driving a new 2004 RX330, I know this is probably the vehicle for me. The only problem is the price. So now I am considering a Demo RX330 that is priced within my range.

Are there any precautions I should take when purchasing a Demo vehicle? Anyone have any warnings about Demo vehicles?

 

I bought another brand of SUV as a demo about 8 years ago. While I never had any real problems with it, it always bugged me that someone else drove it a lot (about 5000 miles), and in hindsight I know I should have gotten a better deal on the price. It seemed I got a deal on a new car, but the car really wasn't new.

Because the car has traveled some distance (maybe not 5K in your case), and it may have had several drivers, I'd treat the transaction like I'm buying a used car rather than a new car. Although it's unlikely that the car has had problems, you should still do prudent things like check the maintenance history, look for damage or replaced parts that might indicate it was in an accident, and so on.

You should get a *considerable* discount depending on the mileage. With only 10 miles on the car, others on this board have posted discounts in the $2000 - $4000 range depending on options and location. For just about all configurations of the RX 330, invoice price is about $6000 less than the sticker price. Think about what they'd give you for it if you bought it new, put a couple thousand miles on it, and then wanted to trade it in. They'll tell you that the value dropped like a rock the minute you drove it off the lot. You should use this fact to your advantage on the demo, because you're effectively buying a used car from them. (Sure, a "demo" hasn't been titled and is subject to mileage limits, but otherwise, how different is it from a used car when it comes to resale value?)

If you've got the right mindset going in - it's a very clean, low-mileage used car, and not a new car - then you'll negotiate a good deal and be very happy with the transaction. The RX 300 is a good used car, and the 330 you're talking about should be a very good car as well.

 

Another thing you need to know is that some brand new RX330's are being used as Courtesy Cars. I have had 2 RX330's as loaner cars already. Don't be suprised if people abuse them like rental cars. I often wonder if the dealer will sell these vehicles as Demos a few months later.