What is a 'demo car' at a dealer store?

Question

When a dealer tries to sell you a 6-12 month old car saying it was a 'demo car', what does he actually mean?

Answer 1

Make sure you get a good price. It should be lower than you could get the same car for new obviously, but perhaps very lightly more than a used car of the same age and mileage.  

Answer 2

It was a test drive car and used for short periods by people who didn't abuse it like a regular owner might. They are usually offered for a good discount and it's like buying new but not paying the full price.

Answer 3

The dealer means it was driven by salespeople and/or used for test drives.