Demo - Good deal or shady?

I'm looking for an '08 4Runner. I'd like leather and all that, but don't necessarily need it and can't necessarily afford it - new.

The local dealer has an '08 V8 Limited, in the color I want, with 5000 miles. I found a formula on the web that says to subtract $3k, plus 15 cents per mile. This particular vehicle has an MSRP of $43k, and the dealer is asking $35k. That $8k discount is over double what the formula says.

They also have another demo in stock with the same MSRP and same sticker price, so I'm not quite as worried that this vehicle is somehow defective.

I'm not going to try to convince myself that the car was "babied" through it's break-in period, but I'd like to think the robust V8 could handle a little abuse. The car is very clean, but I guess that's what dealers do - make dirty cars look clean.

Toyota has zero % on 36-month loans this month (April), so I'm thinking I'll probably buy it. Any words of warning or other advice out there?

Thanks!

I'm looking for an '08 4Runner. I'd like leather and all that, but don't necessarily need it and can't necessarily afford it - new.

The local dealer has an '08 V8 Limited, in the color I want, with 5000 miles. I found a formula on the web that says to subtract $3k, plus 15 cents per mile. This particular vehicle has an MSRP of $43k, and the dealer is asking $35k. That $8k discount is over double what the formula says.

They also have another demo in stock with the same MSRP and same sticker price, so I'm not quite as worried that this vehicle is somehow defective.

I'm not going to try to convince myself that the car was "babied" through it's break-in period, but I'd like to think the robust V8 could handle a little abuse. The car is very clean, but I guess that's what dealers do - make dirty cars look clean.

Toyota has zero % on 36-month loans this month (April), so I'm thinking I'll probably buy it. Any words of warning or other advice out there?

Thanks!
Demos are usually vehicles that are driven by a high profile employee of the dealership. They are usually very well taken care of because they know they must sell the vehicle at some point. Forget about the MSRP and look up the invoice price on kbb.com then do your formula, you may find that the actual value is lower than 35k. Also keep in mind that many manufacturers give the dealer extra money back on demos so there is probably even more money on the table. The vehicle warranty may have already started because many manufacturers start the warranty after the first 650 miles. If this is the case you may want to ask them for an extended warranty at no cost to you. The length of years on a warranty does not begin until the date you actually purchase the car, but the miles have probably already started. Make sure you ask. Demos can be a great buy as long as you negotiate from invoice down, use your formula and forget about the MSRP. Good Luck
Check out link removed by Moderator - unauthorized advertising for more purchase tips.

Thanks for the informative reply. I'll do some searching to see if there are any applicable dealer/Toyota rebates. Is there a better resource than Edmunds to find this information?

Thanks for the informative reply. I'll do some searching to see if there are any applicable dealer/Toyota rebates. Is there a better resource than Edmunds to find this information?
Try Google. Type in "Current Toyota Rebates/Incentives to buy" and check out the results.

I'm looking for an '08 4Runner. I'd like leather and all that, but don't necessarily need it and can't necessarily afford it - new.

The local dealer has an '08 V8 Limited, in the color I want, with 5000 miles. I found a formula on the web that says to subtract $3k, plus 15 cents per mile. This particular vehicle has an MSRP of $43k, and the dealer is asking $35k. That $8k discount is over double what the formula says.

They also have another demo in stock with the same MSRP and same sticker price, so I'm not quite as worried that this vehicle is somehow defective.

I'm not going to try to convince myself that the car was "babied" through it's break-in period, but I'd like to think the robust V8 could handle a little abuse. The car is very clean, but I guess that's what dealers do - make dirty cars look clean.

Toyota has zero % on 36-month loans this month (April), so I'm thinking I'll probably buy it. Any words of warning or other advice out there?

Thanks!
Greg,

I never finished my response because i was called away from my computer.
I have a few more tips and a few cautions before you decide to buy.
Your formula should be 20% off MSRP and .15 per mile. You should also get the vin number and check carfax just to make sure this demo was not a rollback (a rollback is a car that was previously sold but the finance fell through before it was ever titled) make sure it was never in wreck, repossessed, sold at auction, etc. Carfax can help you if there is any report on it. There may be nothing but for a few bucks it is worth the check. Ask the dealer what the car was used for. Was it a test drive demo, trade show demo or used by employees. Technically it is a used car, but because it was never titled the dealer can sell it as new. Make sure you let them know that it is a used car. Any kickbacks the dealer may have received from the manufacturer for a demo will not be disclosed and you will have to really press hard to get them to even admit they received one. Negotiate very hard on this car because in my opinion any car with 5,000 miles on it is used. Botom line, if you are not comfortable with anything regarding this vehicle you are probably right and should look for something else.