On Leasehackr, you’ll find a surprising number of people talking about fart cars.

This isn’t a reference to Tesla’s fart mode, a feature that famously emits flatulence noises through the car’s stereo. No, a fart car is the Leasehackr community’s lingo for a demonstrator (or “demo”) vehicle, usually a courtesy loaner car, that can still be leased under the manufacturer’s new car lease program.

Since demo cars are generally discounted more heavily than new cars, leasing one can be a fantastic option. Here’s what you need to know.

What kinds of fart cars can I lease?

Most premium brands offer courtesy loaners to customers who take their cars in for service. Among Leasehackrs, loaners from BMW and Mercedes-Benz are the most popular fart cars to lease, but you can also find loaners from Audi, Porsche, Lexus, Jaguar, MINI, and Cadillac, among others.

Generally, loaners are current model year, high-volume base models: think a run-of-the-mill BMW X1, X3, 3-series, or 5-series, or a Mercedes-Benz C-Class or E-Class with few options. If you’re lucky, you might find an oddly configured but well-equipped car that was offloaded to the loaner fleet because it wouldn’t sell otherwise.

Some fart cars are “brass hat” vehicles — corporate-owned vehicles driven by manufacturer executives and sold to dealers at auction. While rare, these make for equally good candidates, provided they are discounted heavily and eligible for new car lease programs.

Service loaners from mainstream brands like Chevrolet and Toyota do sometimes exist, but compared to premium brands, the savings tend to be minimal.

How do I find a former loaner or demo car?

Browse the Marketplace on Leasehackr Forum, where dealer representatives and brokers post deals. Former courtesy loaners and demo cars often go quickly.

You can also find loaner and demo cars listed on dealer websites as used vehicles, but you’ll want to review the CARFAX vehicle history report: if a private customer took title of the vehicle, or it was previously leased, then the vehicle is just a regular used car and it cannot be leased under the manufacturer’s new car programs.

With BMW, you’ll want a vehicle with under 5,000 miles to qualify for new car incentives and lease programs, while Mercedes-Benz Financial Services allows customers to lease loaners as new cars with up to 10,000 miles.

How much do I save?

There is no precise formula or rule for how much an ex-loaner or demo car should be discounted. Vehicles that have been in service longer, or vehicles with higher mileage, tend to have larger discounts. Ultimately, selling prices are set by the dealer, and they can make adjustments over time based on how willing they are to sell a particular vehicle in their inventory.

We recommend browsing Leasehackr Forum to get some data points on typical discounts for a particular ex-loaner or demo car in your region. Then browse the Marketplace, and if you see a deal that aligns with your expectations, act on it fast.

Are there any downsides?

Perhaps the biggest downside of leasing an ex-loaner or demo car is that you’ll be working with limited inventory. If you find one that matches your preferences, then great. But unlike with a brand new car, you can’t custom order one, or be too picky about color and options.

Former loaner or demo cars also carry the potential of having existing wear and tear. Before delivery, you should carefully inspect the car for any excess wear or damage that could be chargeable at lease-end. If you’re worried about consumable parts like tires and brakes, particularly on a high-performance car, then it might make sense to go with a shorter 24-month lease instead of the common 36-month lease.

Also confirm whether the bumper-to-bumper warranty will remain in effect during the entire duration of the lease. The warranty start mileage and start date will be based on the vehicle’s original in-service date, rather than when you take delivery of the vehicle. Most premium brands have a 4 year, 50,000 mile warranty, which should generally be enough for a two- or three-year lease of a demo car.

Anything else?

Humorist P.J. O’Rourke once wrote that the fastest car in the world is a rental car: you can drive it with reckless abandon, and if something breaks, it becomes somebody else’s problem. So we can understand the hesitation of purchasing an ex-loaner or demo car.

Leasing in a sense remedies this concern. The vehicle will likely covered by a warranty during the entire lease duration, and you’re not keeping it after that. Most ex-loaners and demos are as good as new, and in reality, most of us are not sociopaths who wreck other people’s property. For deal seekers, the potential for tremendous savings could more than offset the potential for a few pre-existing farts.

Leasehackr Forum: Downside of leasing a demo/loaner car?
Leasehackr Forum: What is a Fart Car and Why Should I Get One?
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