Buying a bargain price pre-registered car - pitfalls?

flea72

Dealers do not have to keep pre-reg cars for 6m. Demonstrators are the only cars that have to be owned by the company for a set period.

Ownership of a pre-reg vehicle can be transferred at point of sale. You are buying a 2nd-hand car, that has minimal mileage and has not been owned by joe public, that is all

Doc_N

flea72 wrote: »

Dealers do not have to keep pre-reg cars for 6m. Demonstrators are the only cars that have to be owned by the company for a set period.

Ownership of a pre-reg vehicle can be transferred at point of sale. You are buying a 2nd-hand car, that has minimal mileage and has not been owned by joe public, that is all

It's a demonstrator I'm referring to here - which is presumably why the six months come into it.

However, the documentation would show me as having ownership from day one - though the dealer would retain the V5C.

TradePro

flea72 wrote: »

Dealers do not have to keep pre-reg cars for 6m. Demonstrators are the only cars that have to be owned by the company for a set period.

Ownership of a pre-reg vehicle can be transferred at point of sale. You are buying a 2nd-hand car, that has minimal mileage and has not been owned by joe public, that is all

How do you think the dealer is able to sell a pre-reg'd car cheaper than a brand new one?

It's generally by registering it as a demonstrator and therefore getting additional discounts from the manufacturer...

It's usually 3 months incidentally, not 6.

TradePro

colino wrote: »

for what will always be recorded as a second-hand car?

This doesn't matter at all, apart from the loss of a few months warranty.

It has no impact on resale values and is essentially still a new car when you first drive it away.

daveyjp

If they intend keeping the car registered in their name after you have paid money to buy it the garage are commiting a criminal offence.

You are also open to prosecution.

Don't do it.

If they want to pre reg it let them rent it to you for 6 months, then transfer ownership on payment of the balance due.

Gloomendoom

daveyjp wrote: »

If they intend keeping the car registered in their name after you have paid money to buy it the garage are commiting a criminal offence.

You are also open to prosecution.

Don't do it.

If they want to pre reg it let them rent it to you for 6 months, then transfer ownership on payment of the balance due.

No they are not. The OP would own the car but the dealer is the the registered keeper. Perfectly legal.

The only offence will be committed if the OP takes delivery of the car and drives it while it is still registered in the dealer's name.

If the OP does this he is at risk of prosecution under section 43C of The Vehicle Excise and Registration Act 1994 for driving the vehicle without being the registered keeper.

Edit: We have bought two cars this way and have saved thousands. We have had zero problems.

Doc_N

Gloomendoom wrote: »

No they are not. The OP would own the car but the dealer is the the registered keeper. Perfectly legal.

The only offence will be committed if the OP takes delivery of the car and drives it while it is still registered in the dealer's name.

If the OP does this he is at risk of prosecution under section 43C of The Vehicle Excise and Registration Act 1994 for driving the vehicle without being the registered keeper.

Edit: We have bought two cars this way and have saved thousands. We have had zero problems.

I've read about the risk of prosecution but it seems to be largely theoretical, with no known cases. An earlier post suggests using a lease as a way round the problem but that would leave the ownership with the dealer, which creates other risks
!

flea72

TradePro wrote: »

How do you think the dealer is able to sell a pre-reg'd car cheaper than a brand new one?

It's generally by registering it as a demonstrator and therefore getting additional discounts from the manufacturer...

It's usually 3 months incidentally, not 6.

Demonstrators dont actually draw as much profit as the bonus' gained from pre-reging vehicles to meet quarterly targets

Pre-reg and demonstrators are totally different in the way they are registered and go through the business. If you buy a demonstrator you are first owner, with pre-reg you are second owner

The OP has now clarified that they are buying a demonstrator, which is why the dealer is unable to relinquish ownership

Doc_N

flea72 wrote: »

Demonstrators dont actually draw as much profit as the bonus' gained from pre-reging vehicles to meet quarterly targets

Pre-reg and demonstrators are totally different in the way they are registered and go through the business. If you buy a demonstrator you are first owner, with pre-reg you are second owner

The OP has now clarified that they are buying a demonstrator, which is why the dealer is unable to relinquish ownership

Thanks. The dealer's only prepared to give a big discount this way - as a demonstrator, as mentioned in the original post. They say they can't do it any other way. I'd still be second owner, though.

Not at all bothered about being second owner. It's just the other potential issues (particularly any possible breaches of the law) that concern me.

TradePro

flea72 wrote: »

If you buy a demonstrator you are first owner

100% incorrect, sorry.