If you’re shopping for a car but want great value, a pre-registered car might just be your perfect match. These nearly new vehicles are often more affordable than brand-new ones and are ready to drive away immediately. But what exactly is a pre-registered car, and are they the right choice for you? Here, we’ll explain everything you need to know, from their benefits and drawbacks, to car finance options and when to find the best deals.
What Is a Pre-Registered Car?
A pre-registered car is a vehicle that has been registered by a dealership before it is sold to a customer. While this may sound unusual, it’s a common practice in the automotive industry. Here’s what you need to know about them:
Technically classed as "used": Because it has already been registered, the car is no longer considered "brand new" on paper, even if it has only accumulated delivery mileage (usually less than 100 miles).
Still "new" in practice: These cars have not been owned or used by any customers, meaning they’re effectively new despite their “used” classification.
Immediate availability: Unlike factory order cars, pre-registered vehicles are ready to be driven away as soon as you buy them.
Why Do Dealerships Pre-Register Cars?
Dealerships use pre-registration as a strategic sales move. Here are the main reasons why:
Meeting sales targets
Manufacturers often set sales targets for dealerships. By purchasing and registering cars and taking the immediate hit on the car’s depreciation themselves, dealers can offer the car at a more appealing price point to customers to help meet quotas.
Unlocking manufacturer bonuses
Hitting sales targets often comes with significant financial incentives or bonuses from manufacturers, making pre-registering cars a sound business decision.
Clearing old stock
Dealerships sometimes pre-register cars to clear room for new models, ensuring they stay current with manufacturers' latest offerings.
Buying a pre-registered car comes with several practical advantages that make them an appealing option for many buyers:
Discounted price
As the dealer has already absorbed the initial hit on depreciation, pre-registered cars are often sold at a lower price than brand-new equivalents, offering significant savings.
No waiting times
Unlike ordering a new car, there’s no need to wait weeks or months for delivery. Pre-registered cars are usually available immediately.
Low mileage
These cars typically have only delivery mileage, meaning their condition is practically as good as new.
Finance options available
They’re considered used cars and therefore may be cheaper to purchase than a brand-new car. If you choose to buy the car on finance then your monthly payments may be lower.
Despite their perks, there are a few considerations you should be aware of before you decide to buy a pre-registered cars:
Shorter warranty period
The warranty clock starts ticking the moment the car is first registered. This means you’ll only get what’s left of the original warranty.
Higher depreciation risk
Because you’re not the first registered owner, a pre-registered car may depreciate in value faster than compared to brand-new vehicles.
No customisation
Pre-registered cars come as-is. You won’t have the option to choose your preferred model, trim level, colour, or additional features.
Classified as second-hand
Even though the car is essentially new, it’s legally considered a used vehicle, which may impact resale value.
Timing your purchase is essential to get the best deal. Here are the key periods to watch out for:
End of quarterly sales periods
March, June, September, and December are when dealerships aim to hit quarterly sales targets. These moments often bring steep discounts on pre-registered cars.
Year-end sales
December and January can yield fantastic deals as dealers clear out stock to make way for new year plates.
Plate change months
March and September mark the introduction of new number plates, making dealers eager to sell older stock.
Before new model launches
When a manufacturer is set to release a new version of a car, dealerships often try to sell off pre-registered stock of the outgoing model
A common misconception is that pre-registered cars aren’t eligible for financing, but this isn’t true. Here’s what you should know:
Similar to used car finance
Most lenders consider pre-registered cars as used vehicles, enabling a wide range of finance options.
Lower monthly repayments
Since pre-registered cars cost less than brand-new ones, you could benefit from lower repayments with options if you choose to finance the purchase.
Deciding whether to buy a pre-registered car depends on your needs and priorities. Consider this quick checklist:
Budget
Do you want the benefit of a lower price? Pre-registered cars can offer excellent value.
Warranty
Are you comfortable with a shorter warranty period, or would you prefer the full coverage that comes with a new car?
Customisation
Do you have specific features or a particular colour in mind? Pre-registered cars typically come as-is, meaning you may need to compromise on custom options.
Immediate Availability
Do you need a car quickly? Pre-registered cars are often ready to drive away without the usual waiting period for a factory order.
Depreciation
Are you okay with a car that has already experienced its initial depreciation? While pre-registered cars are effectively brand-new, their value may drop slightly more than a brand-new, unregistered car.
By considering these factors, you can confidently decide if a pre-registered car aligns with your needs, helping you save money while still driving away in a vehicle that feels brand-new.
Final Thoughts
Choosing a pre-registered car can be an excellent way to get behind the wheel of a nearly-new vehicle without paying the full price of a factory-fresh model. It's important to weigh the advantages, such as potential savings and immediate availability, against the potential downsides, like limited choice and faster depreciation. By carefully assessing your priorities and doing a bit of research, you can make a decision that not only fits your budget but also ensures you drive away in a car that meets your expectations. If you're unsure, don't hesitate to ask questions or seek advice from a trusted dealership - finding the right car should always feel straightforward and stress-free.
