Would you buy a "Demo" car?

I just got off the phone with a Honda dealership after enquiring about a Jazz they have for sale. The salesperson told me this was a 'demo' car, which is new to me. Seems they have one vehicle set aside that is used for all test drives and when this car is done with it's job, ie a new model comes out, they sell it off as used.

I know I would never buy a used rental car in the US, but is this the same scenario? Are salespeople in the car when buyers take test drives here? Would this car have been subject to abuse?

Insights appreciated!

The only time I've ever done a test drive the salesman was with me in the car. That actually sounds OK - like maybe you'd get a nearly new car with pretty low mileage?

It's an '05 with 7000 miles. He said people sometimes pass them over because they can get brand new ones for about £1300 more. And it's bright bright ridiculous yellow.    I like it but I wonder if other people would. I think I am going to take a look at it tomorrow.

NOOOOOOOOOOOO.

OK. 

Whhhhyyyy?

just my opinion, but people drive demo cars hard back in the states...HARD

Did they have demo cars in the US? Is it the same thing?

I bought a VW Jetta that was a Demo, it was a great choice as it had the top of the line of everything.  I bought the car in 1995 and now my sister drives the car.  I w ould buy a Demo again.

I dont think I could do a bright bright yellow!

Oh good! The less people who would, the better haggling factor for me. 

I'm not going to buy a car based on it's colour but if this works out, I will be pleased. It would be hard to lose in a car park, would be cheery even on the drabbest of days, and easy to see coming.

You might want to check the warrenty. When I went to buy a digital camera,the salesman said he would sell me the demo camera used at conventions,but instead of a 12 month warrenty there would be a 6 month warrenty. So, I'm guessing demo items have a shorter warrenty then normal

Good idea! I'll remember to ask about that! Thanks.

Check the warranty.  7000 is quite a lot for a demo car, especially in the UK.  Demo cars might not only be the variety they use for going around with the car salesman (who does usually encourage you to gun the engine) but also might have been loaned out for a night or two to "test out the car".  All things to consider.  But if you have a warranty that you can live with, then it might not be a bad deal.  Since this is essentially a used car for all intensive purposes, I would look at what other '05 Jazz with 7000 miles go for in the market.

Now rental cars!!!!!  NEVER EVER EVER buy a used rental car, no matter how nice it looks.  I have driven rental cars for years, and between myself and co-workers, people behave totally differently with a rental car versus their own car.

I'm not sure about quality of demo cars, I guess the dealership supposedly will clean and repair them like clockwork as they need to sell the cars.
As for whether salespeople are in the car with you, that's not always the case.
I went to a dealership in Westerham (not sure if that's Kent or Surrey) that sold Seats and we wanted to test drive one of their demo cars.  Without taking any ID they happily let us take it out for a spin on our own.  We could have just driven away with the car and never returned!
Fortunately for them, it was a piece of sh*t that we hated    I guess we looked like we have honest faces.

Oh good! The less people who would, the better haggling factor for me. 

I'm not going to buy a car based on it's colour but if this works out, I will be pleased. It would be hard to lose in a car park, would be cheery even on the drabbest of days, and easy to see coming.

I don't know why, but this made me giggle! 
I saw elsewhere you bought the blue car, but I just wanted to say your comments on the yellow were SO positive!!!  Glass half full - love it!