Showroom secrets: How I saved $3,000 with a demo model car

Recently, my old car hit the end of the road. It was 13 years old, had countless issues, and was now going to cost me upwards of $7,000 to get it running again.

After driving my partner’s car around for months and letting mine gather dust, it was finally time for an upgrade. I wanted a car that would feel like it was mine, but without paying the new car price, and as I did my research, I stumbled on an option that seemed too good to be true: a demo-model car.

What is a demo model car?

A demo (or demonstrator) model is a car used by a dealership to display in a showroom, for promotions or test drives.

Unlike a new car, a demo model will already be registered, and will likely have been touched or driven by other customers. At the dealer, you can usually tell which vehicles are new and which ones are demo by seeing which cars have licence plates on them. You can also ask a sales representative.

How much can you save by buying a demo car?

The amount you can save by choosing a demo model will depend on a few factors:

• The age of the vehicle: The older the model, the more you could save, as dealerships typically want to get older stock off the floor.
• The amount of kms: More kilometres on the car can often mean a bigger discount.
• The dealership: Dealers who have more demo models available might be open to offering you a better deal as they try to make room for new stock.

Before I went into a dealership, I had done a good amount of research into the average price of my chosen car, a 2025 Mazda CX-3 GT SP. According to the Mazda website, the new model cost $40,027, and dealerships in my area were offering new models for around this price. Not feeling like a used car was for me, I did some searching on websites like Drive and Carsales, and found a demo model of my desired vehicle for $36,900, with less than 1,000kms on the clock..

The car was registered in November 2025, meaning it still had four years and 10 months left on the 5-year manufacturer’s warranty. It seemed like too good a deal to pass up, so after taking a test drive and asking a lot of questions, I bought it, saving more than $3,000 in the process.

Things to watch out for

You can certainly save a pretty penny by purchasing a demo car like I did, but if you’ve never done this before, there are certain things to look out for:

• Warranty: The warranty typically starts when the dealer registers the car, not when you buy it, so you likely won’t have the entire warranty.
• Amount of kilometers: While Australia has different rules depending on the state, most of the time, a demo model should have less than 5,000km on the odometer.
• Wear and tear: Multiple unknown drivers may have used the vehicles which may result in adjusted interior, small exterior scuffs/nicks, etc.
• Limited choice: You don’t often get too many personalisation options, and are limited to available floor stock.
• Vehicle history: Check the Personal Property Securities Register (PPSR) before signing any contract. This will be able to tell you if the car has been written off or has any finance owing on it.

How to make sure you’re making the right choice

A car is a big purchase, so it’s important to make sure you’re making the right decision for you. Here are some questions you can ask the dealer before committing to a demo vehicle.

• When did the warranty period begin and how much is left on it?
• Has the car been used as a staff ‘loaner’ or just for test drives?
• Are there any cosmetic imperfections that will be fixed before delivery?
• Is the car being sold with all of the extras (such as floor or boot mats) advertised in the photos/in the car?
• Has the car been serviced/mechanically checked over? If not, will it come with a service?

You’ll need to take all of this into account before deciding if a demo model is right for you, but some smart shopping could potentially save you thousands.