Is it possible to get Contract Hire on Pre-owned car?

[loofer]

Went to my local BMW dealership today to get some quotes on a 118D. I told him I would be reluctant to take ownership but he gave me a quote on a PCP (whereby I have option to buy the car at the end).

I then went to Audi nearby for quote on A3... now this time the salesperson asked me if I wanted new or pre-registered.

So I suppose it is possible to get personal car hire/lease on a pre-owned car?

Is this limited to each franchised dealership?
Or are there finance companies out there that would do better deals?
If so, how would it work - do I find the car I want and then inform the finance company?

I'm guessing the advantage of doing thhis with a pre-reg car is that it's made it's biggest loss on depreciation but I still get a nearly new car. Is there a limit as to how old the car can be or how many miles it can have covered at time of taking out lease?

Any other relevant info would help.

TIA

[loofer]

Well I found this
http://www.blackhorse.co.uk/motor/Motor_products_private.aspx

Any further info/advice would be appreciated

[Conor]

I then went to Audi nearby for quote on A3... now this time the salesperson asked me if I wanted new or pre-registered.

So I suppose it is possible to get personal car hire/lease on a pre-owned car?


I'm sorry, can you tell me where "pre-registered" = "pre-owned"?

It doesn't.

[albionrovers]

Agreed.

To me

pre-registered = shiny new car
pre-owned = scabby old car

[Inactive]

But surely a " PRE - REGISTERED " car is " PRE - OWNED " as it has for a short term been " owned " by the supplying dealer.

Or am I missing something?:confused:

[loofer]

well it appears I've totally misunderstood.

I assumed that pre-registered meant it has already got an owner on the log book (be it the dealer or an individual) and hence pre-owned. Well that was my logic/thinking behind it... easily done (isn't it?:o).

So what is 'pre-registered'?

And with regards to my original post, I just want to clarify now that I would like to find out about getting PCP/Contract Hire on a Pre-Owned car.

I saw an advert for a car in Autotrader yesterday. It was for a 1 series, in teh spec I want. Only 1 year old but nearly £6k less than new. It's from BMW franchised dealer (their Approved Used) in Stockton on Tees.

I spoke to the sales person on phone and he said it was possible to get it on PCP/Hire and they arrange it through their in-house finance - BMW Finance. (Unfortunately somebody else secured a deposit on the phone only an hour earlier).

Long and short of it - got me thinking - what if their leasing finance isn't the best deal. Am I tied down to each dealers own finance agreement? How easy is it for me to find a pre-owned car I want and contact different companies to get quotes on leasing it?

[in51der]

Went to my local BMW dealership today to get some quotes on a 118D. I told him I would be reluctant to take ownership but he gave me a quote on a PCP (whereby I have option to buy the car at the end).

I then went to Audi nearby for quote on A3... now this time the salesperson asked me if I wanted new or pre-registered.

So I suppose it is possible to get personal car hire/lease on a pre-owned car?

Is this limited to each franchised dealership?
Or are there finance companies out there that would do better deals?
If so, how would it work - do I find the car I want and then inform the finance company?

I'm guessing the advantage of doing thhis with a pre-reg car is that it's made it's biggest loss on depreciation but I still get a nearly new car. Is there a limit as to how old the car can be or how many miles it can have covered at time of taking out lease?

Any other relevant info would help.

TIA

Hi these deals are widely available, PCP’s or personal contract plans are applicable to new or used cars, however there are mileage and age limits. You are doing the right thing looking at pre-reg as we mention on our site there will be lots of great pre-reg deals on the market as manufacturers look to keep market share and dealers look to compete. I have heard that there will be savings of up to 30% on some model ranges. Most PCP deals will be similar for every franchise and although most manufacturers have their own financing arms (certainly in the cases of BMW/Audi) they have access to a range of others. You will be unlikely to obtain a PCP deal from a high street lender because the package is all about the mileage you will do over a pre-agreed time e.g. 2yrs up to 5yrs in some cases, and the residual or guaranteed future value is set in conjunction with, in this case BMW or Audi. My advice would be to shop around for a deal on the car you would like, make sure that any offers attached are explained and then you will usually find that the sales team will offer you finance based packages as part of their presentation (they make more money from selling add-ons than from the car in some cases) There can also at peak times offer low rate finance PCP deals with very low APR’s. The advice is always be prepared to ask for more, the worst they can say is no! Hope this helps.

[loofer]

Hi these deals are widely available, PCP’s or personal contract plans are applicable to new or used cars, however there are mileage and age limits. You are doing the right thing looking at pre-reg as we mention on our site there will be lots of great pre-reg deals on the market as manufacturers look to keep market share and dealers look to compete. I have heard that there will be savings of up to 30% on some model ranges. Most PCP deals will be similar for every franchise and although most manufacturers have their own financing arms (certainly in the cases of BMW/Audi) they have access to a range of others. You will be unlikely to obtain a PCP deal from a high street lender because the package is all about the mileage you will do over a pre-agreed time e.g. 2yrs up to 5yrs in some cases, and the residual or guaranteed future value is set in conjunction with, in this case BMW or Audi. My advice would be to shop around for a deal on the car you would like, make sure that any offers attached are explained and then you will usually find that the sales team will offer you finance based packages as part of their presentation (they make more money from selling add-ons than from the car in some cases) There can also at peak times offer low rate finance PCP deals with very low APR’s. The advice is always be prepared to ask for more, the worst they can say is no! Hope this helps.
Thank you very much for that. The Black Horse Finance website I found showed that my local dealer was a "member" but the chap still offered me their own finance. I'm guessing that could be because he get's a nicer bonus by offering own brand finance rather than external. Or he could have genuinely offered me the best deal.

What annoys me is that there's not much shopping around you can do, by comparing on the internet without feeling obliged or as though your hassling sales staff for quotes and stuff. It's not as easy as shopping for other finance like a loan.

[Inactive]

well it appears I've totally misunderstood.

I assumed that pre-registered meant it has already got an owner on the log book (be it the dealer or an individual) and hence pre-owned. Well that was my logic/thinking behind it... easily done (isn't it?:o).



I agree with you, I think some people are just trying to confuse the issue.:rolleyes:

[in51der]

I agree with you, I think some people are just trying to confuse the issue.:rolleyes:

Often a manufacturer may have some surplus stock or is about to implement a model change. At these times it may offer the dealer network a batch of these cars at anything up to 25% discount (maybe more in certain circumstances) instead of the usual 5% up front and 8% maximum “back end”.
These cars are supplied on a first come, first served basis but the downside to the dealer is that they will have to preregister most of these cars as, because of the large discounts, the manufacturer will not fund them (i.e. for 120 days) and the discount is only applicable on all the cars registered in the target period.

Preregistered vehicles

If dealers preregister a car they are legally not allowed to sell it on for three months, so you can see the dilemma from a dealer’s point of view. They are getting a massive discount up front but are committed to holding on to the cars they have purchased outright for three months. As you can imagine, this can have huge implications for a dealership’s cash flow. Because of this pressure certain unscrupulous dealerships have been known to hold on to the vehicle’s registration after it has been sold in order to comply with the “three-month rule” (basically they do not fill in the V5C document until the three months have elapsed).



Keeping hold of the V5C is illegal and dealers can face a fine of up to £1,000 for doing so but the practice is, unfortunately, quite widespread.

Preregistration has been an accepted part of the Motor Trade for years but, a few years ago, the industry was being flooded with preregistered cars and these were skewing the government’s figures and distorting the market. So in 2000 legislation was introduced by the OFT (Office of Fair Trading) to reduce the number of preregistered cars coming on to the market. The legislation stated that cars should be retained by the dealer for a minimum of three months before being sold. By withholding the V5C from buyers, dealers can make it appear that they are retaining cars for the required period when, in fact, they are selling them on without delay.
From a customer’s point of view there are huge savings to be had buying preregistered cars but there are downsides. Firstly, the dealership is recorded as the first registered keeper of the vehicle (meaning that when the car is sold on it has had two owners instead of one). Secondly, the manufacturer’s warranty starts from the date of first registration, so that particular clock has already been ticking a while when the car is sold. So any savings gained at the beginning turn out to be losses at the end in that the car’s residual value is less than it would have been had it not been preregistered. As with most things in life these things tend to even themselves out over time. Our advice would be to ask the dealer you are intending to buy from whether there will be any delay in sending the V5C to the DVLA (Driver and Vehicle Licensing Authority). If they say that there is likely to be a delay of a few months before you receive the V5C registration document then it’s probably best to walk away from any deal. The implications of driving around for a few months, in a vehicle that is not registered to you, can range from the serious (police, insurance problems) to the inconvenient (council parking permits, etc.).

[Inactive]

Thanks for that In51der, but that doesn't tell me anything that I didn't know, nor does it resolve the point at issue re;

Pre owned / pre registered.

[in51der]

Thanks for that In51der, but that doesn't tell me anything that I didn't know, nor does it resolve the point at issue re;

Pre owned / pre registered.

"From a customer’s point of view there are huge savings to be had buying preregistered cars but there are downsides. Firstly, the dealership is recorded as the first registered keeper of the vehicle (meaning that when the car is sold on it has had two owners instead of one"

[Inactive]

"From a customer’s point of view there are huge savings to be had buying preregistered cars but there are downsides. Firstly, the dealership is recorded as the first registered keeper of the vehicle (meaning that when the car is sold on it has had two owners instead of one"


Yes I know all of that, that still doesn't answer the issue.;)

[albionrovers]

"
I then went to Audi nearby for quote on A3... now this time the salesperson asked me if I wanted new or pre-registered.

So I suppose it is possible to get personal car hire/lease on a pre-owned car?
"

To me, the pre-registered is the 08 plate and the new one is a 58-plate....which would have a higher monthly lease rate.

But what does it matter, to a OP/leaser who will never own the car, how many owners the car has?....both cars are new?

Could the OP verify please?

[loofer]

"
I then went to Audi nearby for quote on A3... now this time the salesperson asked me if I wanted new or pre-registered.

So I suppose it is possible to get personal car hire/lease on a pre-owned car?
"

To me, the pre-registered is the 08 plate and the new one is a 58-plate....which would have a higher monthly lease rate.

But what does it matter, to a OP/leaser who will never own the car, how many owners the car has?....both cars are new?

Could the OP verify please?
Correct, the no of owners doesn't matter as long as it has been maintained.

I guess I'm after a fairly new car (upto 12 months old from first reg) to lease over three years. There's loads of options to lease a new car but borrowing from new is basically covering the bulk of depreciation.

Personally, it made sense for me to get a car that was nearly new and had bore the brunt of depreciation rate in first year.

Problem is you can walk into any showroom and they will give you a quote on a New car (unregistered) for PCP/Lease and you don't necessarily know if it's the best deal ...you take it at face value. However, because the cars are new - you can spec it how you like and also go to several different dealers that offer new cars and get the best deal. Basically you can get the same product hence makes comparing quotes easily.

With trying to lease a pre-owned car (12 months old, under warranty, a few thousand miles etc) you are a little more restricted. The car you like, at the price you want, may only be available at select dealerships. You go to them and they give you a quote for PCP/Lease - again I could probably negotiate but how do I know if there is a better finance provider.

Am I making any sense/asking for too much/talking out my @r? I don't know much about car industry etc. I've only ever paid upto £4k for a car and previously would have never dreamt of leasing as I always thought of it as Dead Money - and you never have an asset to show for it. Similarly I would have been reluctant to borrow money to purchase a depreciating asset. I think I've just got an urge to drive a new(er) car all of a sudden.:p

[albionrovers]

For a lease deal, I don't get the pre-owned thing when new cars are so cheap?

Why not simply go for personal lease eg. 3+23?

My wife's Audi A3 arrives today, a shade over £210/month inc VAT. 58-plate, cheap as chips.

[loofer]

For a lease deal, I don't get the pre-owned thing when new cars are so cheap?

Why not simply go for personal lease eg. 3+23?

My wife's Audi A3 arrives today, a shade over £210/month inc VAT. 58-plate, cheap as chips.

Now that is a good deal (even if it is entry level 1.6). Which model was it? I'm after a 2.0 TDI pref S-Line

Because I don't really intend to take ownership of the car at the end of lease (unless I really want o keep it) I'm not really bothered weather it's a regular 3+36 lease or PCP with £2kish deposit upfront.

PCP gives me the option to purchase car at end (unlikely) but also flexibly to hand back after half way through if I needed to - so I've been told.

I've only had one comparative quote for the same car on PCP and regular lease. The lease came out more expensive over 3 years even taking into account the smaller deposit.

Why pre-owned?? Even cheaper still. I could buy a brand spanking new car, or I could get a nearly new one which is a few months older and has some mileage on it. Basically the same car - I'm only missing the new car smell:o - but it costs me less.

Here's how I understand PCP to work - I'm completely guessing this so please do correct my assumptions.

a) OTR Cash Price of Car: £22,000
Customer wishes to have the car for 3 years and will cover say 10k miles.
b)Dealer works out what resale/minimum future value will be of car in 3 years time after covering 30k miles.(I would be intrested to know how they work this out - hope it's not arbitary or different for certain/preferable customers) say £10,000
c) a-b=£12,000 This is cost of car to borrow for next 3 years.
d) deposit = £2000
e) need to finance (c)-(d)=£10,000
Basically it works like a loan from there... you want to borrow £10k over 36 months ... they apply the interest and work out the monthly payment.

[albionrovers]

It's a black A3 1.6 SE Sportback. £5573.62 for the 2 years. Looks very nice, I haven't driven it yet and yes it will be a tad under-powered but it ain't me that's driving it. :D

Can't fault your calculations because I only do personal lease as described above, 3+23, and hand the car back every 2 years. I never have any intention of keeping the car after that, I always want a new one with full dealer warranty.

Keeps me in hot dinners too. :p

[loofer]

It's a black A3 1.6 SE Sportback. £5573.62 for the 2 years. Looks very nice, I haven't driven it yet and yes it will be a tad under-powered but it ain't me that's driving it. :D

Can't fault your calculations because I only do personal lease as described above, 3+23, and hand the car back every 2 years. I never have any intention of keeping the car after that, I always want a new one with full dealer warranty.

Keeps me in hot dinners too. :p
That's a good price for an SE SPORTBACK... and just for a 2 year deal!? Can imagine it would have been a sub £200 deal for a 3 door over 3 years! Unless this specific model was on offer. You know they got the facelift model arriving now? Would you be kind enough to share where you got the deal?

Warranty - That's one thing I have to be weary of with pre-owned. The older the vehicle I get, the longer it will be 'out of warranty' at the back end of the lease period - sod's law is that most of the problems occur just after warranty peiod ends:mad: .

[albionrovers]

It is the new shape 09.

Lingscars......good service, very straightforward.

Worth a look, deals may have changed tho'.

[albionrovers]

Check out deal number 3791 on Lings site.