What are the pros and cons of buying a pre-reg lease car?

What is a Pre-Reg deal?

A ‘pre-reg’ car, short for pre-registration, is a common term that you may have heard banded around among salespeople and car dealerships. A pre-reg is a new car that has already been registered directly to a dealership, broker or leasing company, rather than a general member of the public.

Leasing cars on pre-reg lease deals presents customers with a great opportunity to get their hands on a car that is brand new but for a fraction of the cost. They are particularly attractive to lease holders as there is no residual value hit from having an additional owner yet the benefit of lower monthly payments is clear.

Here at Carparison, we have a selection of ‘pre-reg specials’ available for customers to secure a great deal on what is essentially still a ‘new’ car.

Why do dealerships pre-reg cars?

Lease funders will often commit to buying a large volume of cars from a particular dealership with a view to selling them through various credit brokers. Once the car is registered – to the dealership in this instance – the dealership will then be paid for the car by the nominated funder.

Dealerships and manufacturers are able to achieve sales targets based on these registrations and guarantee themselves income at a time controlled by them. It removes the stock and income risk from them and the lower prices act to ensure increased popularity. All this allows the dealership to offer significant discount on the car as a 'pre-reg', which leasing brokers like us can vie for exclusive access to based on our propensity to commit to high volumes.

What are the positives of getting a pre-reg lease car deal?

Should you lease a pre-registered car, you will be getting your hands on what is otherwise a brand-new car.

Because the vehicle has already been registered, we are able to offer very competitive monthly payments that allow you to lease what is essentially a 'new' car at a used price.

Your vehicle may not officially be ‘new’, but if you lease a pre-reg car from us here at Carparison, they will have nothing but delivery miles on the clock, so fear not, you will still get that factory fresh feel that we all crave when picking up a new car.

With most lease deals lasting less than three years, there are not many downsides to opting to lease a pre-reg, as you can get incredible value out of a car for a fraction of the cost – not to mention the fact you’re cutting out any long waits for a car to be ordered and delivered from the factory.

What are the negatives to getting a pre-reg lease car deal?

If you're thinking about leasing a pre-reg car, there are several factors that motorists must consider and some of which may come down to personal preference and what you truly want from your vehicle.

One of the more important factors is the vehicle’s service and MOT schedule, as they will sometimes run from the time the car was registered and not when you buy it. For example, if your new lease car is registered in March, but you do not collect it until May, you may need to be prepared to see your annual service or your first MOT come around that little bit sooner.

You must also be wary of the manufacturer’s warranty. These typically last anywhere between three to seven years and cover any unexpected mechanical issues that are not your fault. Manufacturer warranty usually becomes active at the point the car is registered, so you could be months into the warranty by the time you get behind the wheel.

Remember, if you take out a maintenance package on your lease car, all your servicing and routine maintenance costs are bundled into your monthly payment. This is the case for pre reg lease cars too. 

Another factor to consider is that these pre-registered cars have already been built, meaning you lose the opportunity for personalisation. That is not to say you will not get a high-spec car, you may just have fewer options to choose from. That being said, the cars will be in stock, meaning you could therefore be behind the wheel of your new lease car in just a few weeks.

What does Carparison think?

Systems & Data Manager Simon Taylor says, “Pre-registered deals are ideal for those that are looking for a vehicle where the price has been protected from any potential increase from the manufacturers but are not concerned with the registration date.

“Whilst it means that the vehicle could be on a non-current plate (particularly at times of plate change), this can allow dealers to secure discounts offered against a car and therefore allow the best rates to be offered. Often a pre-reg deal will also attract additional discount as the vehicles have already been taxed.

“There are very few elements that need to be considered with a pre-reg lease car although, if taking a longer lease, you may need to be aware of the exact date of registration so that any MOT or warranty considerations can be taken into account.

“As part of our pricing and advertising process, we will look to specifically highlight if we are told a deal is for pre-registered vehicles and display this on our website so that customers are fully aware of this from the moment they enquire. Our leasing consultants will also ensure that customers are fully aware of the registration date on such a deal so that MOT & warranty considerations can be discussed.”

The pros & cons of a pre-reg lease car deal

Pros

• Huge savings on a 'new' car at a used price
• Quick delivery
• Competitive monthly payments

Cons

• No room for personalisation
• The vehicle's warranty may already be underway
• The car has already been registered to the dealership, broker or leasing company

If you are interested in securing one of our pre-reg lease car specials, why not get in contact with one of our leasing experts and we can help get the best deal for you.