Ex-demo cars sit in a unique position: nearly new, often with low mileage, and sold at a discount. But they're still sold as used cars – so what are your rights when one goes wrong?
Actually, your position is often stronger than with a typical used car.
What Is an Ex-Demo Car?
Ex-demonstrators are cars that were used by dealership staff and for customer test drives. They've been registered (so they're not technically "new"), usually have low mileage (500-5,000 miles), and are sold at a discount from new. They're not new cars, but they're not typical used cars either.
Why Your Rights Are Strong
Higher Expectations Apply
The Consumer Rights Act requires goods to be of satisfactory quality, considering the price (ex-demos are expensive), the description (sold as nearly-new demonstrator vehicles), and the age and mileage (very low). A reasonable person buying an ex-demo expects a car that's almost perfect. Minor faults that might be acceptable on a 5-year-old car are not acceptable on a 6-month-old ex-demo.
The Price Factor
Ex-demos typically cost £20,000-£50,000+. At these prices, the quality expectations are high. Courts consider what's reasonable for the price paid.
The "As Described" Angle
Ex-demos are typically marketed as "nearly new," "as-new condition," "demonstrator quality," or "minimal use." If the car doesn't match these descriptions, it's not as described – and that's a separate ground for rejection on top of satisfactory quality.
Common Ex-Demo Problems
Undisclosed Damage
Staff and test drive damage that wasn't disclosed – kerbed alloys, paint chips and scratches, interior wear or tears, dents and scrapes. If not disclosed, the car isn't as described.
Mechanical Faults
Even low-mileage cars can have problems from manufacturing defects, abuse during test drives, issues that develop early, or faults from harsh staff use. A nearly-new car shouldn't have mechanical faults – this makes for a strong rejection case.
Software/Electrical Issues
Modern cars are complex, and infotainment glitches, sensor failures, warning lights, and connectivity problems are all faults regardless of mileage. The car isn't of satisfactory quality if its electronic systems don't work properly.
Missing Features or Specifications
Sometimes ex-demos don't have features they were sold with – a different trim level than advertised, options missing that were promised, or a specification that doesn't match the listing. The car isn't as described.
Higher Mileage Than Stated
If the mileage is higher than advertised, that's misrepresentation. Check the listing or advert, compare to what was delivered, and document the discrepancy.
Service Not Completed
Ex-demos should have their first service done or scheduled. Check the service schedule, confirm any services have been completed, and ensure the warranty is active.
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Your Legal Rights
Consumer Rights Act 2015
Same as any purchase from a trader: satisfactory quality (with higher standards for nearly-new cars), fit for purpose (must work as expected), and as described (must match the dealer's claims).
30-Day Right to Reject
Within 30 days, reject for a full refund for any fault. This is particularly strong for ex-demos because the expectations are so high.
After 30 Days
Request repair or replacement. Given it's nearly new, a replacement with a similar ex-demo is reasonable, and if the repair fails, you can reject for a refund.
Manufacturer Warranty
Ex-demos usually have remaining manufacturer warranty, but remember that warranty doesn't replace your statutory rights. You can reject under consumer law regardless, so don't let the dealer deflect you to warranty claims.
Ex-Demo vs. New Car Rights
| Aspect | New Car | Ex-Demo |
|---|---|---|
| Statutory rights | Full CRA 2015 | Full CRA 2015 |
| Quality expectations | Perfect | Near-perfect |
| 30-day rejection | Yes | Yes |
| Manufacturer warranty | Full | Usually remaining |
| Description | "New" | "Ex-demo/demonstrator" |
| Mileage expectation | Delivery miles only | Low miles (stated) |
The key difference: ex-demos are sold as used, but your expectations should be only marginally lower than for new.
What to Check Before Buying
Documentation – check the exact mileage at registration versus now, service history (if any), any repair work done, warranty documentation, and what the car was previously used for (staff car or just test drives).
Physical condition – inspect all body panels for damage, alloys for kerbing, interior for wear, pedals for excessive use, and steering wheel condition.
Features – verify all features work as described, the specification is correct, all standard equipment is present, and the options match the advert.
History – ask how long it was a demo, how many test drives it's done, who drove it, and whether there were any incidents.
If Your Ex-Demo Is Faulty
Step 1: Document Everything
Take photos of any damage, videos of faults occurring, a record of any mileage discrepancies, screenshots of the original advert, and save all communication with the dealer. See our guide on gathering evidence.
Step 2: Check Your Timeline
Work out when you bought it, whether you're within 30 days, when the fault appeared, and what mileage you've added.
Step 3: Contact the Dealer
For ex-demos, be firm:
"This car was sold as an ex-demonstrator in excellent condition. [Describe fault] is not acceptable on a [X]-month-old car with [Y] miles. I expect a resolution."
Step 4: Decide Your Remedy
Within 30 days: You can reject for full refund.
After 30 days: Request repair or replacement. A replacement ex-demo or new car may be reasonable given the age.
Step 5: Write Formally
Send a rejection letter referencing the car as an ex-demo, stating it was sold as nearly-new, listing the faults, noting that they're unacceptable for a car of this age and price, and stating your remedy clearly.
Common Dealer Excuses
"It's not a new car"
Your response:
"I didn't pay new car prices, but I did pay ex-demo prices with the expectation of a nearly-new car. This fault isn't acceptable for a [X]-month-old vehicle."
"Some wear is expected on a demo"
Your response:
"Minor evidence of use is one thing. [This fault] is not 'wear from demonstrations' – it's a defect."
"The warranty will cover it"
Your response:
"My consumer rights are separate from warranty. Under the Consumer Rights Act, I'm entitled to [reject/have this repaired by you], and that's what I'm requesting."
"We disclosed it was an ex-demo"
Your response:
"'Ex-demo' means 'nearly new,' not 'faulty.' You didn't disclose [the specific fault], so the car isn't as described."
"All our demos get wear and tear"
Your response:
"That's not my problem. You chose to sell this car at ex-demo prices, which sets the quality expectation."
The Finance Advantage
Most ex-demos are bought on finance (HP or PCP). This helps you because:
Section 75 Protection
The finance company is jointly liable, so you can claim against them directly. They're often more responsive than dealers and can pressure the dealer to resolve things quickly.
Finance Companies Hate Disputes
Finance companies want clean relationships with dealers. A complaint from you creates problems for them, and they often push for quick resolution to avoid escalation to the Financial Ombudsman.
Rejection on Finance
If you reject on HP or PCP, the finance agreement should be cancelled, any deposit returned, all payments you've made returned, and the car goes back to the dealer or finance company.
Recommended reading
The Emotional Factor
Ex-demo buyers often feel extra frustrated because they paid premium prices, expected near-new condition, the fault seems inexcusable, and the dealer should know better. This frustration is valid – channel it into clear, firm communication, but stay professional.
The Bottom Line
Ex-demo cars should be nearly perfect – you paid for nearly perfect. If you got something less, you have strong grounds to reject within 30 days for a full refund, demand repair or replacement after 30 days, and escalate through finance companies or court if needed. Don't accept "it's just a demo" as an excuse. You're entitled to a car that matches what you paid for.
Problems with your ex-demo car? Check if you qualify for a rejection – your rights are strong.
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