Planning to buy a new car? But want to save some money. Then buying a pre-registered car or ex-demo car can save you thousands. There is a third way to get a car ownership apart from new and used - buying a newly new car from the dealer's demonstration fleet or one from their 'pre-registered' cars.
What does pre-registered car means?
A pre-registered car is a brand new car that is usually registered under the name of the dealer. Dealer is technically the first owner on the registration documents and the car already has a number plate. Car dealers do this to artificially boost their sales figures in order to hit targets set by manufacturers. The car is officially termed as second-hand, even though it is only weeks old and has just clocked delivery kilometres. When buying a new car, you have to wait weeks, months for delivery, but with 'pre-registered', the car is ready to take home. Dealers tend to offer these vehicles on discount in order to reduce their stock.
Things to keep in mind
Write down your ‘must-haves’ before going to the dealership. Do your homework as it will give you confidence when asking for discount. Keep the dealer’s ad as proof of the offer – especially the warranty. Don’t leave the showroom without the registration certificate. Do not forget to take written confirmation regarding the transfer of the car’s warranty.
- You get a virtually new car and avoid a good chunk of its initial depreciation.
- Any glitches on a demonstrator will have been ironed out by the dealer.
- There is no waiting period, you get your car fast.
- Great discounts are offered on pre-registered cars.
- Try to bargain on price.
- You can negotiate for extras – if you don’t ask, you don’t get.
- Your name won't be the first on the registration document, which will lower the car's resale value.
- You have a restricted choice of model. The car that is displayed will be considered best for you.
- The demonstrated car might have covered few hundred or thousand kilometres that takes away the 'new car' feel.
- A pre-registered car is a ‘used’ car.
- Customisation is not possible - you get what you see.
- Check the car from interior and exterior thoroughly, even pre-reg cars may be damaged.
- Depending on the registration date, any remaining manufacturer warranty, road tax or breakdown cover will be reduced.
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