What is a pre-registered car?

This guide breaks down what a pre-registered car is, if you should think about getting one, and where to snag a good used car.

Ever wondered about pre-registered cars? You might have seen ads for them and thought, “What exactly are they?” Basically, a pre-registered car gives you the chance to own a nearly new car at the price of a used car. This guide will explain what a pre-registered car is and help you decide if it’s worth your time.

Remember, you can buy a used car right here on Carwow. We’re here to help you through every step of your car-changing journey.

What is a pre-registered car?

A pre-registered car is a new car that, while never owned by an individual, has been registered to a dealership or leasing company. These cars are technically considered used, despite often having only delivery mileage. They offer immediate availability and good value for money, as they are sold at a discount compared to brand new models.

Why do dealers pre-register cars?

Dealerships and leasing companies pre-register cars to hit the sales targets set by manufacturers. This means they buy and register a bunch of brand-new cars to snag bonuses or avoid penalties, even if the cars haven’t been sold to a customer yet.

But how does this affect you? Well, the cost of a dealership having to ‘buy’ and register these cars will be outweighed by the bonuses they get. This allows them to take an immediate hit on depreciation for pre-registered cars, meaning they’ll cost you less than one brand new.

Pros and cons of buying a pre-registered car

Still undecided on whether you should consider a pre-registered car? Here are some advantages and disadvantages to help you.

Pros of buying a pre-registered car

• While a pre-registered car is technically a used car with minimal delivery mileage, the immediate depreciation is absorbed by the dealer, resulting in significant savings for you.
• Yes, you may be the second owner, but a pre-registered car is very similar to a car fresh off the factory line. So, if you’re not overly fussed about not being the first registered owner, you’re still the first public buyer.
• Dealers are often keen to sell these cars quickly to free up cash, meaning they’re more open to haggling.
• Pre-registered cars will either be sat on a dealership forecourt or in storage waiting to go. This means you can drive away with your new car within days, or even the same day, once you’ve signed on the dotted line.

Cons of buying a pre-registered car

The manufacturer’s warranty kicks in from the car’s original registration date, not when you buy it. This means your warranty period will be a bit shorter. So, always double-check the car’s registration date.
Though technically you’re the first real owner of the car, you’ll be registered as the second owner. This could result in further depreciation when the time comes to sell your car.
If you’re ordering a brand-new car, you’ll have full freedom over how you spec it. That’s not the case with a pre-registered car of course, so it may be hard to find a model specified exactly the way you want.

What to look out for when buying a pre-reg car

Here are a few things to watch out for when buying a pre-registered car:

• Make sure the dealer gives you the “new keeper supplement” (section 10) of the V5C and re-registers the car in your name the day you buy it.
• Remember to check the registration date with the dealership or leasing company so you know when the manufacturer’s warranty and any breakdown cover started.
• Although the car is technically new, still do a thorough inspection for any scratches or wear, especially on the alloy wheels.
• Make sure the available stock meets your needs, or be prepared to compromise as you won’t be able to customise the car’s colour or have features added.
• Just like you would with a used or new car, test drive the pre-registered car before taking the plunge to buy it.
• As a pre-registered car cannot be replaced with a new model, consider getting Guaranteed Asset Protection (GAP) insurance to cover any potential losses if the car is written off.

Should you buy a pre-registered car?

A pre-registered car is worth considering if you’d like a new car with some extra savings. However, you should consider the potential warranty implications too. You’re also at the mercy of available stock, so it might be difficult to find the exact car you’re looking for – especially if you fancy some specific optional extras.

Pre-registered cars FAQs

Is a pre-registered car new?

No, a pre-registered car is technically a used car, despite being a brand-new vehicle with low mileage. Its pre-registered status indicates that a dealership or leasing company has already registered themselves as the first owner.

Are pre-registered cars cheaper?

Yes, pre-registered cars are usually cheaper because, even though they’ve barely been driven, they’re classed as used.

Are pre-registered cars taxed?

Yes, pre-registered cars are taxed because dealerships register them with the Driver and Vehicle Licensing Agency (DVLA). When you buy the car, the vehicle excise duty (VED) is included in the “on the road” price, so you won’t need to pay it separately.

Is a pre-reg car the same as an ex-demo car?

Ex-demo cars are technically pre-registered cars but are usually used for customer test drives or to demonstrate features. As a result, they will usually have a higher mileage – though this is usually no more than a couple of thousand miles.

Where can I buy a pre-reg car?

A wide range of dealerships will have pre-reg cars in stock. You can check the latest nearly new cars available through Carwow.

When’s the best time to buy a pre-reg car?

Many dealerships will have targets based on months or financial quarters, usually meaning an influx of pre-reg stock. This is the best time to look for a pre-reg deal.

Does a pre-reg car come with a warranty?

A pre-reg car will still be covered by a manufacturer’s warranty. However, this applies from the date of registration – so the warranty remaining will be shorter than if you buy a brand-new car.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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