Should I buy this Demo?

[pkerner]

Dealer Demo Car

$1000.00 Down Payment
$550.00 Month Payment

2004 4Runner Limited
Navigation System
6 CD Changer

Doesn't have side air bags
No scratchs (just one tiny one)

2,400 miles

Floor mats have been reversed
while demo'd, so the floor mats haven't seen a single footprint.

Clean inside and out

All the standard Limited Features, such as Tan Leather Seats..

MSRP 43,000.00

I went to another dealer to get a
MSRP 43,000.00 Limited, but with 1000.00 down I would have to pay 800.00 a month for a brand new one.

What if I go back and talk them down (for the Demo) to, 500.00 a month or under....plus if they take my 91 Honda Accord (167,000 miles) as collateral for the 1000.00 down payment??

 

[pkerner]

By the way

1000.00 + 550.00 per month for 60 months= 34,000.00

Also, they said that the manager's wife drove the car...is that a standard line that
they give you for demo's??

 

[NoDak]

just remember demo's are just that.

good example is that ford ranger commercial where the couple drive a ranger in the mud and everything and when they get back, they say, we will take that one over there, which happens to be a clean untouched one instead of the one they just drove caked with mud and everything.

not trying to put you off, but be realistic about who and how it was driven.

have you tried getting a loan on your own and see if you can get a lower monthly payment? i know the dealer couldnt touch the apr rate i could find on my own.

 

[rando]

Negotiate a sales price first. Then negotiate/shop your loan/lease payment options. It's the only way to know what your truly paying for the car.

A 'Demo' is just a fancy way for a dealer to avoid calling a used car used. From your perspective, it's just that: USED. On a used car, the condition of the floormats should be the least of your worries. Those can be replaced fairly cheaply.

Good luck

 

[rando]

Re: By the way

1000.00 + 550.00 per month for 60 months= 34,000.00

Also, they said that the manager's wife drove the car...is that a standard line that
they give you for demo's??

In actuallity, the present value of $1000 down + $550 for 60 months is LESS than $34,000 when you consider the cost of money (i.e. interest) and inflation. Regardless, don't negotiate this way. If you want to pay $34k, then close the deal at $34k. Next go out and shop for a $34k loan with the lowest interest rate and fees (a.k.a. APR) and best terms.

 

[rando]

You should also realize that the MSRP is irrelevant. Right now you can easily purchase a new 4runner for $1000 or more BELOW invoice (after rebate). New cars depreciate a huge amount in the first year. Go to a leasing site and look up the amount the 4runner is expected to depreciate in the first year. Assume a 12000/mile per year lease. Your demo has 2400 miles. So take 2400/12000=0.2 and multiply that by the expected depreciation (probably around 20% or more). So I'd guess somewhere around 4 or 5% below invoice - $1000 after rebate would be a good deal.

Good luck at getting that price though. Realistically, that demo probably looks just like a new car on the dealers books. That means they want/need to get a like 'new' price for it unless they have some manufacturer assistance.

 

[toyo]

I bought mine with 2400 miles on it. It is a 04 V8 AWD Sport. They gave me 6k off the sticker. The Owner of the dealer drove it. I know that for a fact because when I wanted to drive it, his stuff was still in there and we had to get the keys from him.

Leather
sunroof
12 spkr Jbl
Homelink
Compass Mirror
Rear headphones
Double decker
All Mats
I thinks thats it. I paid 30k + tax.

 

[Thai]

Ditto to all the responses above.

In all likelihood, a demo car did not follow proper break-in procedure. So, down the road, you may have problems with it...thus, negating any savings you may get now.

NEVER negotiate a sale by discussing monthly payments. Haggle about the final price FIRST. Then, haggle about the APR% (if financing). Once you have done this, then monthly payment is already calculated via final price and APR%.

With over 2000 miles, i would negotiate the car as if it is a USED car. So, go to KBB.com or EDMUNDS.com and find the USED car price on that 4runner with those options. From there, you would haggle with the dealer.

Good luck.

 

[pkerner]

I haggled based on payments

We actually discussed in terms of payments, rathrer then the lowest MSRP price.

Kelley BB says (they can only assess a 2003), 28K

and Edmunds (they can't assess a 2004 either), 35K

How can I verify if the manager's wife really was the one who drove it around?

I also have bad credit, and would have difficulty getting a outside loan.

 

[jj8111]

Don't buy it!

Too much $$$$, find a new dealer.

Use the internet , edmunds.com, carpoint, carsdirect, get the real price of a new one. Then and find a dealer who will give you $100-300 over invoice. Negotiate from the invoice up. If you have good credit (725+) you should get 3-4% for 60 months. And check edmunds they list rebates and incentives on new cars; check and see what toyota is offering.

I find if you initally contact a dealer thru the internet they will be more reasonable in regards to price then if you just walk in.

I bought my 2003 in December, I paid under invoice because it was a leftover. I paid $30500 (34500 list). And toyota gave me another $750. I got 3.95% for 60 months. 1 year service.


There are 3 things to be negotiated when buying a car
The price of the new car.
The ARP and term
The trade in Value

Sometimes the salesman will try to lower one and raise another.


Dont be in a rush!



John

 

[darktiger]

I say dont buy it. Be wery of demo's. My last demo turned into a lemon nightmare.

 

[Iman74]

I am with Darktiger on this one. My Honda Passport was a demo; a demo lemon as I like to call it. There were problems with that thing since the day I drove it out of the lot. Wouldn't be such a big deal except that I turned in a two year old PROBLEMLESS CR-V with 50k miles on it: not one problem from the CRV.

 

[EDGE]

You say the MSRP of that 4Runner is 43k and it has no side airbags, mine was fully loaded with an MSRP of 43k and had side air bags

You also say the demo dealer is gonna give you the truck for 34k while the non demo dealer is gonna give the truck to you at 48k at 60 months of payments, you sure the demo dealer is not tryin to slide you into a lease that you think is a loan, it will be a real bitch to get a letter after your last payment and their asking you to return the vehicle

I don't get it the demo dealer is giving you 9k off the MSRP of 43k, invoice for that truck should be about 40k and usually the dealers will go no less then 1000 above invoice unless they deal with giant inventories but still they need some profit to keep the dealership running.

Now the non demo dealer wants the payments at 800 a month, now after 60 months thats 48k, thats sounds more realistic.

If the demo is really 34k I would buy it, drive back to NY and sell it making 10k in profit, I think the demo dealer is just low balling you to get you in the finance office then your gonna see payments of 700+

The last thing I'll say is I could have got a demo with 5000 miles on it and they wanted as much as a new 1

As you can see Im confused by the numbers you put down they just don't add up

 

[rando]

Re: I haggled based on payments

We actually discussed in terms of payments, rathrer then the lowest MSRP price.

Kelley BB says (they can only assess a 2003), 28K

and Edmunds (they can't assess a 2004 either), 35K

How can I verify if the manager's wife really was the one who drove it around?

I also have bad credit, and would have difficulty getting a outside loan.

It's no harder to get a loan anywhere else than it is at the dealer. You can usually get the same rates or better on your own, regardless of your credit rating. On the other hand, if your credit is truly bad, you might also consider a more cost effective vehicle.

 

[pkerner]

Lease?

I really don't think they were talking in terms of leasing (I HOPE NOT!), but I never specified, even though only over my dead body would I lease.

I am dead serious about the 43K MSRP on the Demo that they want me to take, and when they said 550 per month with 1000 down, they had that on paper in front of me, so there is no way would I take the deal if they sent me to the finance office, only to have it changed to 700.00 a month.

Maybe the other dealer was full of it, but it didn't have a Navigation system, but they wanted 43K for a new one. He said, because of my credit and how you are a "tier 3", it would be 800.00 a month w/ 1000 down.

I went to another dealer and he said the same thing "We don't have any Limiteds on site, but if you put 1000 down, you are looking at 700-800 a month..."

Guys, I can handle 1000 down, plus 550 a month, do you really think I could do better trying to get a new Limited for an even lesser monthly payment? That is what some of your replies suggest...

Ive registered with carsdirect and all of the other online search services, and I'll see if they reply this week...

Also, there aren't too many Toyota dealers in my area (North East New Jersey), and the supply of Limiteds seem scarce!

I'm starting to panic!

 

[EDGE]

Re: Lease?

Also, there aren't too many Toyota dealers in my area (North East New Jersey), and the supply of Limiteds seem scarce!

I'm starting to panic!

Narrow it down what part of Jersey, I got my Loaded Limited at Prestige Toyota and the prices your quoting of 550 for 60 months is a lease: no way they are giving you a 43k vehicle for 9k off it's not an Explorer.

 

[snowjay]

Well they have to say it's a lease up front and when you sign the papers it's pretty much in black and white... not like they can trick you and all of a sudden you have to turn it when you get a letter from the bank.

Leasing isnt a bad option for someone like you. You don't have a lot to put down and dont have good credit so by leasing you can get a better vehicle than if you tried to buy. I'm leasing my 4R, I put less than $2k down, have $329/mo payments for 42 months and 15k miles a year. I could have also gotten $319/mo for 36 months and 12k miles a year. Personally I could have put down more and affored a much larger monthly payment but why when I'll want something new in about 3 years anyway and now I dont have to deal with trade in's or selling it. I also just bought a house so the small payment is nice and I still have money in the bank for things that I might need for the house.

The amount you pay during the lease is based upon how much the vehicle is estimated to be worth when you turn it back in. In my case it will be worth $17k at the end of 42 months so I pay the $12k (plus interest). At the end of the 42nd month I either turn the vehicle in or I have the option to pay the $17k and keep it (or refinance it). Again if you want to keep it you can probably get a loan for th $17k over 4 years and still have low payments. You've just now spread out the cost in 100 months instead of 60.
I guess the only bad thing about a lease is you are commited to it for the term, there is no giving it back early but I have seen places that will buy you out of your lease if you need to. For me thats not an issue, espically since I drove my last truck for 8 years.

 

[mam4994]

When I was doing vehicle research I saw in some publication, I don't remeber though, the 7-year lease was one of the most favorite vehicle lending terms selected by consumers in the year 2003.

 

[Good Times]

the 7-year lease was one of the most favorite vehicle lending terms selected by consumers in the year 2003.

Man 7 yrs is CRAZY!!!! if you can't pay off your vehicle in 36 months.... you might as well buy something cheaper. The interest gets to be pretty ugly after 36 so it's best to finish by 36 instead of the usual 5 yr terms.

I've got my truck setup for 5 but I should be done in 3

As for buyin the demo... I'd say NO. That's buyin used. Even if it only had 2200 miles it's still used. You don't know how the driver drove during those 2200 miles. Even if they said, it was driven by the sweet mngr's wife who knows what happened. I've seen rich doctors driving porsches and never do an oil change and trade it in annually so looks can be deceiving... I'd say get a new truck.

Also negotiate by the full price. Don't even bother w/ the apr and terms as that'll all sort itself out on the table w/ your credit. You gotta fight for the invoice price or below invoice price. After that once that is set, just say, $ is set now take me to the finance department to finish this paperwork. Stop bugging to work out #'s, numbers will work itself out there... hehe If you're talking to the sales staff about apr %, you're gettin screwed. That part should not be negotiated....

good luck

 

[pkerner]

It's a Lease

I just asked the salesman over the phone if it was a lease offer or not...his answer....??

"Those numbers were for a lease..."

THE NERVE.

Oh well, because of my credit, I just got offered a 9.1% (because of my credit) finance rate from an online loan offer....

time to call all of the dealers in the area and ask if they have a Limited Titanium Metallic, Navigation 2004....

and see what kind of offers they can give...both Edmunds and Carpoint say invoice is 33,012.00 but I don't know if that includes a Navigation System...