mustang_sallad Posted July 13, 2017 Share Posted July 13, 2017 I'm looking to get my hands on a Hyundai Ioniq electric, and dealer has one that was used briefly as a demo vehicle (for a few special events and test drives) and has about 1500 miles on it. What would be a reasonable discount on a car like this? You always hear about how much value the car loses the minute it leaves the dealer, but in this case, the dealer is asking full price. That seems unreasonable, so I told him I wasn't interested, so i'm just wondering what would be reasonable. The Focus EV is my point of comparison. After tax and government incentives, they're coming in around $31k, whereas this Ioniq is around $38k. Quote Link to comment Share on other sites More sharing options...
NLPRacing Posted July 13, 2017 Share Posted July 13, 2017 I would ask for $1500 under invoice and go from there. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 13, 2017 Share Posted July 13, 2017 I'm looking to get my hands on a Hyundai Ioniq electric, and dealer has one that was used briefly as a demo vehicle (for a few special events and test drives) and has about 1500 miles on it. What would be a reasonable discount on a car like this? You always hear about how much value the car loses the minute it leaves the dealer, but in this case, the dealer is asking full price. That seems unreasonable, so I told him I wasn't interested, so i'm just wondering what would be reasonable. The Focus EV is my point of comparison. After tax and government incentives, they're coming in around $31k, whereas this Ioniq is around $38k. Do you mean he's not offering any discount? Is he asking for MSRP on the other Ioniqs, or does he have them marked up? 1500 miles is a lot for a demo car. I mean, either that car has been sitting on the lot for quite a while or it's had a lot of miles put on it in pretty short order--either way, there are some potential warning flags there. I'd agree w/NLP, but insist that the dealer include an extended warranty as well. Quote Link to comment Share on other sites More sharing options...
MKX1960 Posted July 13, 2017 Share Posted July 13, 2017 Isn't there a certain amount of miles that the dealer can no longer sell it as "new"? Quote Link to comment Share on other sites More sharing options...
jeff_h Posted July 13, 2017 Share Posted July 13, 2017 Isn't there a certain amount of miles that the dealer can no longer sell it as "new"? I think that depends on each state what they can deem as "new" - when I bought my Fusion Energi in MD it was a demo with 2k miles (I paid $11k under MSRP) and the finance guy showed me the form that said that in MD a car could still be considered "new" as long as it had less than 7,500 miles and had never been titled - but the finance guy is the one that told me the rule varies by state. Quote Link to comment Share on other sites More sharing options...
blazerdude20 Posted July 14, 2017 Share Posted July 14, 2017 Do you mean he's not offering any discount? Is he asking for MSRP on the other Ioniqs, or does he have them marked up? 1500 miles is a lot for a demo car. I mean, either that car has been sitting on the lot for quite a while or it's had a lot of miles put on it in pretty short order--either way, there are some potential warning flags there. I'd agree w/NLP, but insist that the dealer include an extended warranty as well. When I worked for a ford dealer we would "donate" the use of new fusions (4 per term) to the school district teenage driver education course. They would usually come back with about 1,500-2,000 miles and would be sold as new. A disclaimer was placed in the window and usually they were tagged about 4K off MSRP. Only once did a kid get in a fender bender... new service shuttle vehicle. 1 Quote Link to comment Share on other sites More sharing options...
twintornados Posted July 14, 2017 Share Posted July 14, 2017 The dealer gets $$$ when they put a car in the demo pool, i.e. F&I guy gets a car to drive, sales manager gets a car to drive, owner of the dealership gets a car to drive as does his wife and/or comare (pronounced goo-mod)...then, they sell them as demo cars with a new title and a few thousand off the sticker....your Hyundai dealer feels he can get his cake and eat it too and if the car is in high demand, he will likely get to enjoy some cake... 1 Quote Link to comment Share on other sites More sharing options...
ice-capades Posted July 15, 2017 Share Posted July 15, 2017 The dealer gets $$$ when they put a car in the demo pool, i.e. F&I guy gets a car to drive, sales manager gets a car to drive, owner of the dealership gets a car to drive as does his wife and/or comare (pronounced goo-mod)...then, they sell them as demo cars with a new title and a few thousand off the sticker....your Hyundai dealer feels he can get his cake and eat it too and if the car is in high demand, he will likely get to enjoy some cake... Sorry but Dealers do not get incentives ($$$) from Ford to put vehicles into "Demo" service. In CT, Demos are still considered new vehicles when they are sold as they've never been registered or titled. Years ago, all of our managers and sales representatives had Demos but now only the managers have Demos. Those employees with Demos pay taxes on the vehicles as a taxable fringe benefit as required by the IRS and pay for their own gas. Vehicles remain in "Demo" service until sold. There is a mileage limit for Demos that are leased (5,000 miles?) but not for retail sales. I've had Demos that were sold in a week and others that I drove for nearly a year. The warranty start date is the day the vehicle is put into demo service. Some but not all Dealers depreciate their "Demo" inventory but our dealership does. The vehicles are written down a certain percentage of invoice each month until the vehicle is sold. Any discounts offered to a customer are based on the length of time the vehicle has been in demo service, mileage and other factors such as the demand and/or availability for a particular model. The sale price, including any "Demo" discount is negotiable the same as any other retail sales transaction. 2 Quote Link to comment Share on other sites More sharing options...
twintornados Posted July 16, 2017 Share Posted July 16, 2017 Sorry but Dealers do not get incentives ($$$) from Ford to put vehicles into "Demo" service. In CT, Demos are still considered new vehicles when they are sold as they've never been registered or titled. Years ago, all of our managers and sales representatives had Demos but now only the managers have Demos. Those employees with Demos pay taxes on the vehicles as a taxable fringe benefit as required by the IRS and pay for their own gas. Vehicles remain in "Demo" service until sold. There is a mileage limit for Demos that are leased (5,000 miles?) but not for retail sales. I've had Demos that were sold in a week and others that I drove for nearly a year. The warranty start date is the day the vehicle is put into demo service. Some but not all Dealers depreciate their "Demo" inventory but our dealership does. The vehicles are written down a certain percentage of invoice each month until the vehicle is sold. Any discounts offered to a customer are based on the length of time the vehicle has been in demo service, mileage and other factors such as the demand and/or availability for a particular model. The sale price, including any "Demo" discount is negotiable the same as any other retail sales transaction. . Must've changed the regs since the early 90's when I sold cars.... Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted July 16, 2017 Share Posted July 16, 2017 . Must've changed the regs since the early 90's when I sold cars.... I think it varies by state. Quote Link to comment Share on other sites More sharing options...
mustang_sallad Posted July 16, 2017 Author Share Posted July 16, 2017 Thanks for all the input, everyone. I suspect the Ioniq is in high demand so he thinks he can sell this pretty quickly and without a discount. Turns out that none of the dealers are really stocking this car and you have to order it and then wait 2-3 months. So that means anybody who's interested in this car might be willing to take something slightly used for the same price if it means they get to skip the line. I feel like these guys have found a way to get some benefit out of the demand/supply situation - for new cars, I think they probably aren't allowed to markup, but I guess nothing's stopping them from asking full price on a demo car if the demand is there. I'm in Quebec, Canada. Automakers have been pushing back hard against a California-style ZEV mandate, saying the demand isn't there and they shouldn't be forced to make cars that people don't want. But at least in some regions, supply is definitely lagging demand. I don't know how they even expect to get a true gauge on demand for these cars if the average buyer can't just walk in and try one out and take it home if they like it and they have one in the right colour. Quote Link to comment Share on other sites More sharing options...
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