Are cars reported to manufacturers when used as Demo's?

I’ve been told by a dealer that a certain car I’m interested in is currently being used as a demo & they are pushing to sell a higher MSRP version (same model) as it will “be a better deal”. I pushed back and said I wanted the demo model as it is cheaper, and spec’ed out the way I want, and could warrant a better discount since it has Demo miles on it. They responded “it has not been reported to BMW as a demo car so there’s no extra discount available”. Does this “reporting” actually happen? They haven’t given numbers on it so I can’t compare the deals…but this reporting is something I haven’t heard of before & seems like a tactic to push me into the more expensive model.

Yes, cars get put into loaner status and manufacturers give dealers a write down (lower cost) for the unit which is why they can discount them more than a new car

Not sure why they wouldn’t put it into demo status though, that doesn’t make sense

Exec demo rather than a loaner possibly? Last week I had a dealer tell me they wouldn’t really move that much on a XC90 that had 3k miles on it. It was apparently an exec demo used by the owner of the dealership and the exec demos are not treated/discounted the same way as the loaners are.

Might not be what is going on in the OP’s situation, but it’s a thought.

Just move on.


Looks like it is in fact an exec demo for the manager/owner or whoever. Seems odd they wouldn’t register it, but oh well. Thanks everyone for answering my question! Initially I was told it was already sold, then it wasn’t, and now it’s not for sale. Just some shady stuff.

In my opinion, exec demos used by the owner should be discounted more. Lord knows how poorly those guys and their kids treat those cars.

A dealer tried to sell me a GTI once by saying “The owner’s son has been driving the car, great condition.” I laughed in his face. No way a 20-year old wouldn’t beat on something he did own.

Granted, I’m sure folks who use loaners probably don’t take super careful care of said loaners.

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