For a start Demo's will have one previous owner if they have ever been road-taxed. Which it probably has with almost 4,000KM on the clock, but maybe not so it's worth checking out. Also the warranty has started ticking down from the date of first registration. If you decide to go new, why not wait and buy a '07 in 4 months? Besides having new and used cars a lot of garages also sell: Pre-Registered cars, Ex-Demos and Ex-Hire-Drives. In my experience understanding the pricing policies of the garage is how you understand the real bonus of going for one of these types of car-deals. Forget the price in the window and get the sales person to quote you for a new car, demo car and a 1 year old car. Then look at your cost to change. E700 is a pretty lousy discount but I expect you would find it very easy to increase that margin. I'd want at very least a E2,000 saving on cost to change to get into a new car. Otherwise just shop around and haggle, then tell the guy in the first garage that the guy in the second is beating him by E300 or so. Then go see a guy in a third garage.