What is a Pre-Registered car?
Car Leasing can sometimes be confusing as lots of terms are often thrown around in many occasions, the customer has now idea what half of them mean. We have written this blog post to run through the details of the commonly used phrase “ Pre registered lease cars”
What is a Pre-Registered Vehicle?
Normally a car is ordered and registered to the new owner, that is relatively straightforward. A Pre-Registered car is a vehicle which has been registered in the dealership before it has been sold.
What are the Benefits to a Pre-Registered Car?
A Pre-Registered car is sitting in stock and is ready to go.
These pre-registered vehicles are often preferred by people who need a vehicle immediately.
A Pre-Registered car is a new car. When leasing a Pre-Registered vehicle you will receive a brand new, unused vehicle.
Cheaper: Pre-Registered cars are generally cheaper than factory orders or unregistered vehicles. So, there is often a bargain to be had by opting for a Pre-Reg vehicle.
What are the disadvantages to a Pre-Registered Car?
There are some disadvantages to leasing a Pre-Registered car that you must be aware of.
Warranty: Manufacturer’s warranty will start from the date of first registration, not the date that you receive the vehicle. When leasing a pre-registered car it is important to confirm the date of registration. In most cases the pre-registration will be 1-2 months prior to your delivery but in some cases it could be greater. This means that your Manufacturers warranty could run out months before the end of your lease. If the vehicle breaks down after the warranty has expired, you will be liable for the repair costs, unless you have a maintained contract.
MOT: An MOT is still a legal requirement 3 years from published taxation point, so if this falls within the lease period, it is your job to get one done at your cost. If you have a maintained agreement this cost will be covered by the lease provider.
Vehicle is already built: The vehicle is already built and ready to go. This means that you cannot configure it, you may have a colour choice depending on stock. You may need to lower your expectations and accept a compromise with a Pre-Registered car.
Why are Vehicles Pre-Registered?
There are a number of reasons why Pre-Registered cars exist. Often dealerships are offered bonuses from their groups or manufacturers for meeting sales targets. They therefore order large volumes of cars to meet the target and secure the bonus. Sales bonuses are calculated from registrations so the cars will be registered immediately. The cars are then offered out at a discounted rate as their sole intention was to reach a target.
Lease companies may also purchase a large batch of vehicles. Whilst negotiating a deal they may compromise on a Pre-Registration to help the supplier reach a target. This saving is then passed onto the client in the form of a great value lease deal.
The main points to remember with Pre-Registered Cars
- They are New cars, Not to be confused with a demo which will be supplied with over 1,000 Miles on the odometer.
- They are in stock waiting to be delivered.
- They are generally a High Spec.
- What you see is what you get. You cannot change the specification.
- They may have warranty and MOT implications.
- A maintenance package takes away all the potential unexpected costs associated with a Pre-Reg.