If you’re out searching for a new car, then you may have come across the term ‘pre-registered car’. But what does it mean and how does it affect car buyers? In this guide we explain what pre-registered cars.
What does it mean?
Pre-registered cars are essentially brand new cars which already have one registered owner, usually a dealer. However, fleet managers and even manufacturers have been to known to pre-register new cars.
When a car is pre-registered it is usually one in a pack of at least a dozen vehicles to have had this process done to it simultaneously. These cars technically become ‘second-hand’, even if they are barely weeks old and have only covered delivery miles.
Pre-registering a new car reduces its value and they can end up being sold for as little as 70 per cent of the list price.
The reason dealers are willing to do all of this is because pre-registering cars makes it appear that they are selling far more units then they actually are. This in turn allows dealers to keep meeting sales quotas even during quiet periods and persuade manufacturers to keep supplying new models to them.
After pre-registering these ‘discounted’ new cars, dealers will aim to sell them as quickly as they can - about three to six months later.
Should I buy a pre-registered car?
It’s understandable for certain car buyers to be tempted by pre-registered cars. After all, what you’re getting is a car that should be as fresh as a new model but offered for a lower price.
But while it is possible to get a great deal and fast delivery on a pre-registered car, there are some potential issues to consider.
For instance, when you’re buying a new car you can have it made the way you want, choosing the colour, trim, optional kit etc. Pre-registered cars are far less flexible. What you see is what you get. You might be able to get some missing extras added if you ask, but there’s generally little scope for customisation.
When a car is pre-registered, its warranty will become active at that moment. That means you could potentially end up with a car that feels new but is already one or two years into a three-year warranty. The remaining road tax or breakdown cover may also be both reduced drastically.
Also, if you sell a car that’s been pre-registered in the past, then its value may be less compared to if you brought it brand new. That’s because you’ll be registered as the car’s second owner, rather than the first.
If you do find yourself tempted by a particular pre-registered car, then you should check the car’s details which relate to the potential issues mentioned above. Make sure you get your V5C certificate when you purchase the car, to dodge the potential legal implications of driving without it in the future. It’s also worth checking how many miles it has covered.
Only delivery miles should be on the clock, so the figure on the odometer should be very small. There should also be no signs of wear and tear. If one or both of these things are not the case, however, then it could be because the vehicle has been used as a test car for other potential buyers. If that’s the case then you should pay 'ex-demonstration price' for the car, which should be even lower compared to when it was simply pre-registered.
