View Full Version : CPO demo/loaner



geewiss
07-03-2020, 09:18 PM
I'm very close to making a purchase on a 2020 XC90 Inscription with 34 miles on it from a dealership. It's in their system as a demo/loaner vehicle but couldn't of been used as such as the miles are so low.

During my negotiation I was told that I wouldn't get the standard 4 year 50K mile warranty since it has been a demo since Sept. I'd get only about 3 years and 2 months of warranty. For that reason I say no way. They agreed to certify the vehicle and include the CPO 5 year unlimited mileage warranty giving me about 4 years and 2 months of warranty. This seems like a good deal to me? Am I missing something?

Also, why would the dealer mark a vehicle as a demo/loaner and then not use it as such?

Any info would be greatly appreciated.

Thanks!

SCwires
07-04-2020, 06:56 AM
I would ensure that the CPO coverage is identical to that of the original factory warranty.

Gary-16-Xc90
07-04-2020, 07:05 AM
CPO at no additional cost to you sounds like a very reasonable solution especially with no mileage limitation.

On the title transfer/search, who is listed as first owner - the dealer, someone else, ...? For how long was it on the dealer’s lot; was it a dealer to dealer trade?

There can be many business, franchise and other reasons why a vehicle was put into service as a loaner/demo and not driven.


All the best from Minnesota USA,
A fine MY16 XC90 T8

FusionRedXC60
07-04-2020, 08:35 AM
It will bring up questions when you sell it in future. Carfax probably shows you are the second owner not the first though started with only 34 miles on it. So this is a reason for slightly lower resell value, hence lower price to buy it now.

For CPO warranty, I am just not sure if it covers small things like rattles, squeaks, same well as factory warranty.

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Ultrarunner511
07-04-2020, 08:44 AM
My XC90 had 200 miles on it and a loaner car agreement from a previous customer in the center console. I argued that this makes it a used vehicle or a loaner and they disagreed. They insisted it was new since it was never titled to anyone. I didn't back down, so I got the 120k/6 year VIP platinum added on their dime as reassurance.

I've seen similar things at other dealers.. I'm not trying to pick on Steingold Volvo, as I've ordered parts from them and think they're an outstanding dealer. But look at this XC90...

https://www.steingold.com/commercial-new/Volvo/2020-Volvo-XC90-near-providence-c34987de0a0e0ae805c82fdd2f1af9a7.htm

Advertised as new, with 7100+ miles on it. That is not new, nor should it display the new car MSRP.

Gary-16-Xc90
07-04-2020, 09:46 AM
By itself, I would not be too concerned about the use of a rental agreement. It establishes duties, responsibilities and accountabilities. It protects the dealer and shifts liability for insurance purposes to the renter a/k/a driver of a loaner.

My dealer requires a rental agreement for all loaners complimentary and $x/day.

Nonetheless, if I were a buyer, I would definitely seek a VIP warranty be thrown in if they promote it as new. If used and discounted, a no charge CPO warranty/unlimited seems worthy.


All the best from Minnesota USA,
A fine MY16 XC90 T8

SteingoldVolvoCars
07-04-2020, 12:16 PM
My XC90 had 200 miles on it and a loaner car agreement from a previous customer in the center console. I argued that this makes it a used vehicle or a loaner and they disagreed. They insisted it was new since it was never titled to anyone. I didn't back down, so I got the 120k/6 year VIP platinum added on their dime as reassurance.

I've seen similar things at other dealers.. I'm not trying to pick on Steingold Volvo, as I've ordered parts from them and think they're an outstanding dealer. But look at this XC90...

https://www.steingold.com/commercial-new/Volvo/2020-Volvo-XC90-near-providence-c34987de0a0e0ae805c82fdd2f1af9a7.htm

Advertised as new, with 7100+ miles on it. That is not new, nor should it display the new car MSRP.

Thanks for bringing this up, a great chance to remind everyone that all our Demo/Loaner vehicles include the 5 Year/Unlimited Mile Certified Warranty at no charge - with the increased discount, added CPO Warranty, and Low CPO APR, Demo vehicles are always a great option.

The MSRP will always be shown since it’s considered a New/Demo/Loaner according to our website provider, but the added benefits make it for a great deal. Hope this helps clear it up for you, and Happy Fourth!


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Ultrarunner511
07-04-2020, 12:30 PM
Happy 4th! Thanks for the response! I had this discussion with my dealer too. If it includes a CPO warranty, that's awesome! But it is arguably misleading, even deceiving, to display it as a new car.

geewiss
07-04-2020, 05:42 PM
I appreciate all the feedback and I got more information as I questioned the dealership as to why this was a loaner and not used. Here is some of their response.


We registered this vehicle as a loaner on 9/13/19 not realizing that is was an Inscription Trim level which we do not generally use as a loaner... so we kept it in our new inventory on the NEW side, NOT the used side as we do when we retire them with mileage. "

I also asked for a basic title search for information and they stated.


As for the title, you are the first buyer and owner of this vehicle as if it and is new.

I also asked for the service history


There is no service history because it only has 35 miles on it.

I've been trying to find information on the CPO warranty and it's really hard to find the details. Also, trying to find the difference in the VIP that was mentioned vs the CPO.

SteingoldVolvoCars
07-04-2020, 07:28 PM
Happy 4th! Thanks for the response! I had this discussion with my dealer too. If it includes a CPO warranty, that's awesome! But it is arguably misleading, even deceiving, to display it as a new car.

Understood, hence the Demo/Loaner tag on all the vehicles listed online.

When these vehicles are sold, it should always be clearly disclaimed that the warranty date has previously started, and of course, a price adjustment to reflect the previous warranty start date.

Often times, Volvo Corporate puts in a request to dealers that certain vehicles be marked as “Demo/Loaner” for inventory purposes only, even though the vehicle has never been driven as a true loaner. Glad to help clear up the confusion!


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geewiss
07-04-2020, 07:48 PM
Often times, Volvo Corporate puts in a request to dealers that certain vehicles be marked as “Demo/Loaner” for inventory purposes only, even though the vehicle has never been driven as a true loaner.

This is what I was thinking but I'd like to understand why. It's interesting because I do see several dealers in my area that have the exact same XC90 (optioned identically) as a loaner/demo. Same color and all. May I ask why this is so?

Thanks! and Happy 4th!!!

MyVolvoS60
07-04-2020, 11:36 PM
I'm very close to making a purchase on a 2020 XC90 Inscription with 34 miles on it from a dealership. It's in their system as a demo/loaner vehicle but couldn't of been used as such as the miles are so low.

During my negotiation I was told that I wouldn't get the standard 4 year 50K mile warranty since it has been a demo since Sept. I'd get only about 3 years and 2 months of warranty. For that reason I say no way. They agreed to certify the vehicle and include the CPO 5 year unlimited mileage warranty giving me about 4 years and 2 months of warranty. This seems like a good deal to me? Am I missing something?

Also, why would the dealer mark a vehicle as a demo/loaner and then not use it as such?

Any info would be greatly appreciated.

Thanks!

A Volvo Factory CPO comes with 5 years / unlimited mile running from the in service date. So apparently the car has about 10 months of shelf life where it only acquired 34 miles. Just make sure they are doing a Volvo CPO. If the deal is right, then you're walking off with 4 years / 2 months and unlimited miles. Drive the wheels off the car

MyVolvoS60
07-04-2020, 11:40 PM
My XC90 had 200 miles on it and a loaner car agreement from a previous customer in the center console. I argued that this makes it a used vehicle or a loaner and they disagreed. They insisted it was new since it was never titled to anyone. I didn't back down, so I got the 120k/6 year VIP platinum added on their dime as reassurance.

I've seen similar things at other dealers.. I'm not trying to pick on Steingold Volvo, as I've ordered parts from them and think they're an outstanding dealer. But look at this XC90...

https://www.steingold.com/commercial-new/Volvo/2020-Volvo-XC90-near-providence-c34987de0a0e0ae805c82fdd2f1af9a7.htm

Advertised as new, with 7100+ miles on it. That is not new, nor should it display the new car MSRP.

Generally, as long as the car has been titled, it's a loaner. Even if it has 34 miles on the odometer. On the other hand, if it isn't titled and had 34 miles, dealer could argue test drives. 7100 miles is definitely not new or a vehicle used for "test drives".

geewiss
07-05-2020, 07:11 AM
This gets even more interesting now.

I have another dealer offering me the exact same XC90 (non demo/loaner) for 1K more. But interestingly it has 95 miles on it.

What would yall do?
Loaner with 34 miles on it for $1000 more than a non loaner with more miles (95)???

MyVolvoS60
07-05-2020, 01:02 PM
This gets even more interesting now.

I have another dealer offering me the exact same XC90 (non demo/loaner) for 1K more. But interestingly it has 95 miles on it.

What would yall do?
Loaner with 34 miles on it for $1000 more than a non loaner with more miles (95)???

Do you plan to keep the car long term or trade / sell it?

1. Plan to keep long term - 100% the Demo / Loaner with 34 miles. Who cares if you're the second owner. You'll get 4 years and 2 months of comprehensive coverage for $1000 less than a car with 95 miles.

2. Plan to sell / trade it in - Go with car that has 95 miles. It'll be one owner vehicle which won't be titled until you take ownership. Meaning it'll have a clear and concise ownership trail.

Whereas people might wonder on a car with 34 miles, why it was a demo / loaner than sat around. Not saying that hurts the value, but it does mean you are the second owner (Dealer ---> You), instead of the first. So if it is sold later on, whomever buys it is now the 3rd owner title wise.

SteingoldVolvoCars
07-05-2020, 01:08 PM
The loaner issue is absolutely nothing to be concerned about, other than the lapse of factory warranty. Ask your dealer when this vehicle was put into service, hence the start of the factory warranty. If it was relatively recent, there should be no issue, plus they’ll have the option to upgrade to the 5 Year/Unlimited Mile Warranty,

As for the new one with 95 miles, it’s normal for vehicles to have a few miles on the odometer, as it may have been “swapped” from another dealer/etc, or some test drives.

Both of these scenarios should not be considered an issue in the least. Nearly every vehicle in the US will be purchased with between 10-50 miles - if they can include the CPO warranty, then take the Demo vehicle with the $1,000 price reduction for sure.

And resale value will not be affected on either vehicle, as BOTH vehicles will show you as the first and only owner.


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MyVolvoS60
07-05-2020, 02:52 PM
The loaner issue is absolutely nothing to be concerned about, other than the lapse of factory warranty. Ask your dealer when this vehicle was put into service, hence the start of the factory warranty. If it was relatively recent, there should be no issue, plus they’ll have the option to upgrade to the 5 Year/Unlimited Mile Warranty,

As for the new one with 95 miles, it’s normal for vehicles to have a few miles on the odometer, as it may have been “swapped” from another dealer/etc, or some test drives.

Both of these scenarios should not be considered an issue in the least. Nearly every vehicle in the US will be purchased with between 10-50 miles - if they can include the CPO warranty, then take the Demo vehicle with the $1,000 price reduction for sure.

And resale value will not be affected on either vehicle, as BOTH vehicles will show you as the first and only owner.


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I think that depends upon dealer. Like my vehicle was a demo / loaner titled to dealer. Carfax shows me as second owner. I'm not sure if it's because the vehicle was probably part of a swap. Shreveport, LA Volvo dealership had it before going over to Ft. Worth, TX Volvo Dealership. But I've seen other loaners titled to dealers before, too. Where the car shows as second owner.

If geewiss is keeping car, the Demo / Loaner 100% way to go. Geewiss could also check Carfax on Demo/Loaner to see if it's registered as 1 owner titled to dealer or not at all.

SteingoldVolvoCars
07-05-2020, 03:03 PM
Send the VIN over, and I’ll have a look at the CARFAX Report.


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GrecianVolvo
07-07-2020, 03:29 PM
I'm very close to making a purchase on a 2020 XC90 Inscription with 34 miles on it from a dealership. It's in their system as a demo/loaner vehicle but couldn't of been used as such as the miles are so low.

During my negotiation I was told that I wouldn't get the standard 4 year 50K mile warranty since it has been a demo since Sept. I'd get only about 3 years and 2 months of warranty. For that reason I say no way. They agreed to certify the vehicle and include the CPO 5 year unlimited mileage warranty giving me about 4 years and 2 months of warranty. This seems like a good deal to me? Am I missing something?

Also, why would the dealer mark a vehicle as a demo/loaner and then not use it as such?

Any info would be greatly appreciated.

Thanks!

Probably a demo and never really got used or forgotten on the lot. I doubt it was registered as a loaner if it only has 34 miles.

MyVolvoS60
07-08-2020, 01:04 PM
Probably a demo and never really got used or forgotten on the lot. I doubt it was registered as a loaner if it only has 34 miles.

You are probably right, but it happens. I had Steingold pull my vin to demonstrate the oddities of a dealer swap being titled to the receiving dealer. Can't hurt to pull vin and double check to be on the safe side.

gak
07-08-2020, 01:29 PM
I've bought two CPO Volvos listed as "demos" on the sales contract. They were dealership company cars assigned to managers. Perhaps they also were used as demos as well, I do not know. Although first registered in the dealership's name, the state considered me the first "registered owner" in both cases.