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Would it be unwise to look a new Z06 with 500+ 'demo' miles? Assuming it could be had for near invoice price and that the miles were actually put on by a VIP at the dealership that drove it for a few weeks. Of course, there's really no way to know how it was driven, break-in procedures, etc. Too bad the computer doesn't record overall top speed or how many times the rev limiter has been hit!
I would consider it a used car and it should be listed below invoice IMHO. Even if it was driven hard the first 500 miles I don't think you should have a problem.
That would be called an "executive car" not a demonstrator if they're giving you the straight story. Ask to talk to the dealer "VIP" who drove it and ask him how he broke it in and drove it. How about: Did you do any race track hot lap events or drag race it? ;) Signs of road racing would be noticeably scuffed tires and brake rotor scoring, but drag racing doesn't leave much visible evidence.
If it really was an exec car and was driven rationally, I don't see any problem paying near invoice for the car. Legally it will still be considered a "new" car assuming it carried dealer plates and is still on MSO. In most states a car is "new" until the MSO is swapped for a registered owner. Also, ask about the warranty. It normally starts the day the car is "placed in service", including demonstrator or dealer executive use. The full OEM warranty still applies, but you lost the 500 miles and "few weeks" is was in service, but I don't think that's a biggie. If the car doesn't have any door dings or other signs of wear and tear I think it sounds like a reasonable deal.
Figure that the best Z06 deals out there now are $5K below MSRP. If they're willing to sell at invoice, that's about another $2K discount, which works out to $4 per mile. You can detemine the actual invoice at http://www.kbb.com or http://www.edmunds.com
Thanks for the info. The car is considered new and qualifies for the GMAC incentives for new cars. Warranty is 3 years from date in service to me or 36000 miles. I'm down the 500+ miles, but not the time driven. I'll see if I can talk to the guy that actually drove it. I doubt he raced it, but you never know. It could be a win/win if the miles didn't hurt it and the price is right.