Some of the best new car deals can be had without paying new car prices if you consider buying a model that’s classed as a “pre-reg” vehicle.
Pre-reg cars can be financed in just the same way as showroom models, through taking out a car loan, signing a hire purchase agreement, or borrowing money from your bank.
But what are pre-reg cars and why do they work out so much cheaper than brand new models?
What is a pre-reg car?
Pre-reg cars are basically vehicles that are used to artificially meet dealership sales targets.
The dealer purchases the car, and then registers it to the dealership. As this is recorded as a sale, it will count towards the dealership’s target. If this target is met or exceeded, the dealer will be paid a bonus. With bonuses typically netting car dealerships more profit than from purely selling cars, pre-registering is a very popular way of generating extra revenue for the dealer.
As the vehicle has technically already been sold once, it’s officially had one owner. This means that you can effectively obtain a brand new ‘second hand’ car that in actual fact has never even been out on the road, for a huge discount!
And because the vehicle is still regarded as a new car by the dealership, you’ll still be able to obtain a new car loan or other attractive finance package with which to buy your new vehicle.
Where to find a pre-reg car
The easiest way of locating a pre-reg car is to ring around a few dealers and ask if they have any in stock. Expect to be offered a good discount of around 20 per cent, possibly even more if the model is unpopular or has been in the showroom for over six months.
It’s also worth asking the dealership if they have any road test models or showroom vehicles for sale. These are usually pre-reg cars too and may come in even cheaper if they have a few miles on the clock.
Disadvantages of buying pre-reg cars
Despite the many pros of buying a pre-reg car, there are a few cons too.
The main disadvantage of buying a pre-reg car is that you can’t order specifics. In other words, what you see is what you get in regards to colour and trim. In addition, any warranty that is offered on the vehicle will be valid from the day on which it was originally registered, not from the day you buy it.
When you come to sell the car, it will be registered as having two former owners, rather than just one, which could reduce the re-sale value if you decide to part with your car in the future.
In summary
If you’re looking for a brand new car but you don’t want to pay top dollar for one, you may want to consider looking around for a pre-reg vehicle.
When spending an afternoon tyre-kicking around your local dealerships, why not ask if they have any pre-reg cars available? You might just get yourself an absolute steal!
