by 
The Curious Bag
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Working as a manager or supervisor at a car dealership comes with the perk of getting to drive a demo car (or demonstration car) for the life of your employment. Although a demo car is excellent for employees, it is sometimes not the best buy for consumers.
Employee Personal Vehicle
Car dealership managers use demo cars during work hours as well as after hours without being registered to them. Employees are not limited to the distance they drive or the errands they run with the vehicle.
Demo Cars are New Cars
Because demo cars are never registered to the employees who drive them, they are considered new cars despite the wear and tear and odometer reading.
Test Drive Car
Demo cars are given to consumers to test drive even when it is currently used by an employee.
Advertisement Vehicle
Dealerships benefit from putting a vehicle on the road with a temporary license plate or plate frame with the name of the company because consumers in the market to buy that particular vehicle see the company name and relate the car to that dealership.
Pros and Cons
Demonstration cars are cheaper than a legitimately new car, although it has suffered extreme testing by potential buyers who rode it to the extreme to test the brakes, engine and other components.
Source:
Consumer Reports: What is the Real Deal with Buying a Demo Car?
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