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_3

loofer wrote: »

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?

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

loofer wrote: »

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

in51der wrote: »

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

loofer wrote: »

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

Inactive wrote: »

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.