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Contract Hire and Leasing Guide - About Pre Registered vehicles

All Vehicle Contracts Contract Hire and Leasing Guide - About Pre Registered vehicles
  • Pre-registered vehicle guide

    What is a pre-registered vehicle?

    A pre-registered vehicle – often referred to as a pre-reg vehicle or car - are new vehicles that have been purchased and then registered, usually by franchised dealers, main dealer groups or leasing companies, to achieve preferential levels of discounts directly from the manufacturer.

    Why do manufacturers adopt the process of pre-registering vehicles?

    Manufacturers adopt this policy to control stock levels and to help them gain market share without affecting vehicles’ recommended retail price (OTRP). It is also a common way for manufacturers to clear existing model lines prior to the release of an updated or new version.

    Pre-reg vehicle pros – vs - cons
    Pre-reg vehicle pros

    The level of discount and savings available on pre-registered vehicles can differ by manufacturer and vehicle type, but generally they are generous with the bulk of the savings passed on as customer savings that can offer substantial savings against the comparable new vehicle headline price.

    Another plus point with pre-registered vehicles is that they are vat qualifying, which means they can qualify for contract hire and leasing agreements as well as PCP and finance at very competitive prices.

    Pre-reg vehicle cons

    A pre-registered vehicle that may only be weeks old with just a handful of miles on the clock is still classed as a used vehicle, with the dealer or leasing company being the first registered keeper. This could adversely impact the vehicles long term resale value in some instances.

    Some pre-reg vehicles could have been waiting for buyers for some time as it is common for manufacturers to want to clear older stock and existing model lines prior to the release of updated or new model versions. It is wise to check these points out prior to placing your final order and ensure you are comfortable with the vehicle type, specification and savings against that of a new vehicle.

    Choosing leasing or finance on pre-reg vehicles

    Because of transparent pricing, pre-registered vehicles offer great value on all leasing and finance options, in particular PCP finance. If you’re looking for monthly payments to fit a specific monthly budget, with a guaranteed future value that offers you an option to purchase, arrange your own sale or simply return the vehicle at the close of the agreement, PCP on a pre-reg vehicle is well worth considering.

    Pre-reg vehicle warranties

    Pre-reg vehicles are supplied with the balance of the manufacturer’s warranty from the date of registration, along with any other warranties that are available from the dealer..

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