Are you considering opting for a pre-registered vehicle? Here's everything you need to know before you take the plunge...
For anyone looking for a new car on a budget, a pre-registered vehicle could be the perfect solution. Plump for pre-reg and you'll be bagging yourself a new car for a fraction of the price - what's not to love about that? If you've not heard the term before, pre-registered means exactly what you'd expect: a vehicle that has been registered to an owner before you buy it.
Not to be confused with a demo car, which is typically used by dealership staff for transporting customers or personal use and therefore will come to you with a certain amount of mileage; a pre-registered vehicle will normally only have delivery miles on the clock. However, it will be classed as a used car.
The thing that sets a pre-reg car apart is the fact that it has been bought directly from the manufacturer by a dealership or leasing broker. In brief, this normally happens when a dealership has a specific sales target to hit so instead of hedging their bets and hoping they'll reach these targets by selling a specific volume of vehicles, they will purchase some themselves and sell them onto the customer. It's not really here nor there from a buyers perspective but helpful to understand nonetheless.
So, what information do you need when taking your first steps into the world of pre-reg cars? We've drawn up a few pros and cons to get you on your way.
The Pros:
1. You'll save money
Let's be honest, in the current economical climate, we could all do with saving a few pennies. Opting for a pre-reg car isn't exactly on a par with buying a Robin Reliant from Arthur Daley price wise (thank goodness) but it's certainly a cost effective way of purchasing a new car. In no small part because the dealer will take the immediate hit on depreciation for you. Pre-reg cars are typically 10-15% cheaper than their unregistered equivalents which is a not -too- shabby saving.
2.It's still a new car
You may technically be the second owner but with mere delivery miles, you'll still be hitting the road in a vehicle that is fresh from the factory and similar to a brand new car in every other way. So as long as you don't mind not being the first name in the log book, you'll be laughing.
3. Availability
Arguably the most important factor to consider in the current climate, if you need a car quickly, pre-reg is a good choice. Whereas semi-conductor shortages and difficulty sourcing components have led to extended lead times on brand new models, a pre-reg car will be held in stock at a dealership. So you can pretty much drive it off the forecourt immediately.
The cons:
1. Warranty issues
A manufacturer's warranty is applied to any new car, including pre-registered ones. However, it begins from the date of registration so depending on how long your new vehicle has been stored at the dealership, you will only benefit from whatever duration remains. That said, this only rally matters if you think you're likely to hit the year limit of the warranty before you hit the mileage limit.
2. Limited models
By it's very definition, a pre-registered car is likely to be an end of line of less popular model. Well, if they were in high demand, they wouldn't be hanging around at the back of the metaphorical class waiting to be picked, would they? It's worth checking if your chosen pre-reg model is about to get a reboot - it's good information to go to the dealership and negotiate with.
3. What you see is what you get
Unlike new cars, you don't have the option to customise a pre-reg vehicle. So if you've got a list of required specs as long as your arm, you may want to reconsider.