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Pre-Registered Vehicles
The Implications of Leasing a Pre-Registered Vehicle
In the automotive world, a pre-registered car or van is a vehicle that a dealership or finance company has registered before it is leased to a customer. This practice, while sometimes complex, can offer potential leasers’ significant benefits, from cost savings to immediate availability. This article will delve into the intricacies of leasing a pre-registered vehicle, examining its benefits, drawbacks, and crucial considerations for prospective lessees.
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What is a Pre-Registered Vehicle?
A pre-registered vehicle is a brand-new vehicle that has been registered by a dealership before being leased to a customer. Dealerships will often register cars to meet sales targets set by manufacturers, the vehicles are then technically classed as 'used' once registered, even though they might have only minimal mileage. When a pre-registered vehicle is leased, the finance company or “funder” is usually the first owner of the vehicle, with the driver being the user of the vehicle under a lease agreement.
Advantages of Leasing a Pre-Registered Vehicle
Price
The cost of leasing a pre-registered vehicle can be significantly lower than leasing a brand-new unregistered model. This could be due to additional support offered by vehicle manufacturers to hit certain registration targets in any one given month or quarter.
Availability
Pre-registered vehicles are available for immediate leasing and use, unlike a brand-new factory order where you might need to wait several months for it to be built from the factory. Pre-registered vehicles must already be physically built to be registered with the DVLA.
Condition
Pre-registered vehicles are essentially as new. They usually have only been driven a few miles and are generally in perfect condition.
Disadvantages of Leasing a Pre-Registered Vehicle
- Choice: Your choice might be limited when leasing a pre-registered vehicle. You are restricted to the specific make, model, and specification, also limiting your choices regarding available colours.
- Warranty: The warranty period starts from the date the car was first registered, not from when you lease it. A pre-registered vehicle could have been registered for several months; this can significantly cut into the warranty period left on that vehicle. Typically, a new car comes with a 3-years manufacturers warranty. If a car was registered on the 31st of March, and your lease started on the 1st of July in the same year, your manufacturers warranty period would be 2-years and 9-months.
- MOT: Under current UK law, all vehicles must have an MOT inspection after 3 years. If you take out a 3-year lease agreement on a vehicle that has been pre-registered, you may be liable for the MOT test and any associated costs incurred.
- Servicing: The recommended manufacturer service schedules are different depending on the manufacturer, make, model and drive train, i.e., Petrol, Diesel, Hybrid or EV. If you have leased a pre-registered vehicle, your annual service will be due based on the date of registration, not on the date it was delivered to you.
What to Consider When Leasing a Pre-Registered Vehicle
When leasing a pre-registered vehicle, there are several key points to keep in mind:
- Mileage: Check the mileage on the vehicle – it should typically be no more than a few hundred miles. When your pre-registered vehicle is delivered to you, make a note of the mileage on the vehicle delivery note as this will be taken into consideration when calculating your total contract mileage.
- Length of Lease: Take into consideration the length of your lease agreement so you are aware of when your service, maintenance and MOT may be due.
- Warranty: Find out how much warranty is left on the vehicle. Keep in mind that the warranty starts when the car is first registered, not when you lease it.
- Maintenance: Always consider taking a fully maintained contract, this means you are covered for all routine servicing, maintenance, replacement worn tyres and in most cases MOT’s.
- Vehicle History: As the car was pre-registered by the dealer, its history should be uncomplicated. However, it's always worth confirming that the vehicle hasn't been used as a demonstrator model, which could lead to more wear and tear.
In conclusion, leasing a pre-registered vehicle can be a savvy decision, providing many of the benefits of a brand-new vehicle at a potentially reduced cost. However, it's essential to do your research and be aware of the key considerations to ensure you're making the best decision for your circumstances.
Speak to your sales advisor or customer support for any information regarding pre-registered vehicles.
