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What Is A Pre Registered Car?

Pre-Registered Cars Are A Great Way To Get An Essentially Brand New Car, But At a Much Cheaper Cost! We explain the advantages!

Jun 04, 2018

What Is A Pre Registered Car?

Are you looking to get the very best deal on a car? If so, you may have considered buying a ‘pre-registered’ car.

Franchised dealers often have a wide choice of pre-registered cars and they can offer great value. Buying such a vehicle can save you thousands against the list price of a brand-new model and you still benefit from many of the perks associated with a brand new car.

Keep reading to learn more about what pre-registered cars are and the benefits of buying one. We also look at some factors you should bear in mind and what you need to know about pre-reg cars when you speak to your dealer.

Pre-registered cars explained

When a dealer pre-registers a car they are effectively buying it from the manufacturer themselves. A dealer will register the car to themselves prior to it being sold on the forecourt.

Why do dealers do this? Well, it is mainly because dealers are given sales targets by the manufacturer and they can achieve these targets by buying the car themselves. The bonuses that dealers receive from car makers are significant which means they can pass on these savings to buyers.

Profit margins on new cars can be small. The Daily Telegraph reports that “It doesn’t matter that the dealership has registered the car to itself, that car will have paid its way. The dealer can then sell it as a low mileage ‘demonstrator’ and they won’t be too fussed if they have to discount it heavily to shift it on because it’s already done its job.”

The only difference between a new car and a pre-registered car is that the dealer will be listed as the first owner, and you will appear as the second.

A pre-registered car will typically have very low mileage. Most often they will have ‘delivery miles’ on the clock – up to 200 at the most. The car will generally be less than six months old and you can check this by looking at the ‘build date’ which is usually on a place inside the driver’s door.

Benefits of buying a pre-registered car

There are lots of reasons why buying a pre-registered car is an attractive proposition.

1. They are cheaper

Dealers get bonuses from manufacturers for meeting sales targets. This allows them to pass on savings to you because they have already earned money buying the car themselves.

This means that you can benefit from significant discounts on the list price of an equivalent new car. It is not unusual for you to save between £500 and £2,000 especially if it is a model that is soon to be replaced.

In addition, you will often find that a dealer will offer low-cost finance and service deals. And, because it is a new car in all but name, you will benefit from many of the perks of new car ownership such as a warranty and no MOT for three years!

2. You still get a new car

A pre-registered car is, effectively, a new car. It should be in ‘as new’ condition and with only delivery mileage on the clock. While the dealer may have been the first official owner when you buy it you are effectively taking ownership of a brand new vehicle.

3. Immediate delivery

Pre-registered cars have been purchased by the dealer. This means that they are sitting on the forecourt and so you don’t have to wait for the car to be built and delivered. You can often drive away a pre-registered car on the same day.

What to bear in mind when buying a pre-registered car

While there are lots of reasons to consider a pre-registered car there are some factors that you should bear in mind if you are considering buying such a car.

Firstly, you won’t be the first owner of the vehicle. The dealer is always the first owner and you will be listed as the second owner. When you come to sell the car it will be ‘third hand’ and this can affect its resale value.

When buying a pre-registered car you may also not get the exact model, colour or specification that you want. If you buy a new car it can be built to your exact requirements whereas you will choose from the limited number of pre-registered cars at your dealer.

Also, check that your car has been sourced from a UK dealer and not from abroad. If it has come from overseas this may have an impact on the warranty and on equipment levels.

You should also establish how long the car has been at the dealer. The car’s warranty begins the moment they are first registered and so if a car has been sitting on a dealer’s forecourt for 6 months then you will only benefit from the remaining warranty.

Finally, buying a pre-registered car may also affect your car insurance. If you have a policy that offers ‘new for old’ cover this will generally only apply to the first registered owner of the car. If you make a claim your insurers would offer their valuation of the car which is likely to be less than it would cost to buy the car again new.

Ask your dealer about pre-registered cars

If you’re looking to buy a new car it can pay to ask your dealer if they have any pre-registered cars in stock. Main dealers will generally have a selection of vehicles and you may get the right car for you at a significant discount.

A main, franchised dealer will also ensure the transaction is above board. Some unscrupulous dealers want to hold onto the car’s registration documents for months to prove to the manufacturer that the car has been sold. This can result in legal implications regarding driving the vehicle and proving that you’re the owner. However, a reputable dealer will let you drive the car away and leave with the registration document (V5C).

If you are interested in a pre-reg visit your local Sandicliffe dealership or call us on 0115 9395000

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