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I think it depends on its condition alltogether and of course on the final price vs how much "cheaper" is it compared to a non-demo car or to a new/er one. A demo car does not necessarily have to be one that was abused and/or tracked. In my area the BMW dealers have several demo cars and even M8 with production date 01.07.2019 ranging between 10.000 and 15.000 km driven and they look impeccable. As with buying any used car, you should carefully inspect it in and out (look carefully especially inside at the interiors / cabin details) and the rest of the car to get a clear picture of its condition. Wheels, tires, brakes will tell you a lot about how the car was driven as will the windshield. A car that was often tracked for example is likely to have visible signs on the windshield caused by gravel/stones or debris of any kind flying and carried around at those speeds and basically unavoidable. It's also a good idea to LIFT the car and inspect it underneath.
I think one should not avoid demo cars a priori thinking negative about them especially if low-mileage. Instead I would consider them amongst my choices and if there was one that meets my requirements, I would seriously consider it unless I really want a brand new car with 0 miles. That is there may be a good deal to be made.
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