Because we don’t always see the finished product which is delivered to the customer, as most vehicles are driven or transported directly to them, we do miss out on being able to get familiar with each product.
As an online lease car credit broker, this is something which is quite difficult, as we offer nearly every make and model of brand-new car; clearly you cannot see them all!
While we endeavour to review and educate ourselves to ensure we are able to discuss the vehicles with our customer, this is not always possible.
When customers are looking for new lease cars, one of the interesting developments in our industry can often confuse them – the pre-registered vehicle. What is a pre-reg vehicle? Should I be concerned with a pre-reg car? This was a topic to get highlighted in the motor and general press in 2018, without any real understanding of exactly what was being talked about and how this would affect the end-user.
A pre-registered vehicle is one which has been registered with the DVLA – for more info on new/used vehicles see https://www.gov.uk/vehicle-registration.
When a car has been manufactured and built, this will be delivered to the UK via our ports for transferring to a dealership or to a PDI (Pre Delivery Inspection) centre at the ports. While the vehicle will have the necessary documentation, including its chassis/VIN (vehicle identification number) for all intents and purposes the vehicle does not yet exist on the UK roads.
When the car is sold, or arrangements made for this to be sold, the dealership must organise the vehicle to be registered with the DVLA.
Historically this was done via the AFRL (Automated First Registration and Licensing) system. However, in 2018 this was changed to a new online system known as RaV (Register a Vehicle). At this part of the process the vehicle is made live with the DVLA and it will receive its registration number depending on the month; bearing in mind the plate changes in March and September.
Once the vehicle is made live, the dealership will receive important documents which shows the registration number, keeper’s name/address and all other key information about the vehicle such as the VIN number.
So why is the registration so important? For any customer wanting a “brand brand new” car, in that they want to take collection of the vehicle on its actual registration day, this needs to be made clear to the dealership or broker.
In our industry, most cars are registered on the day before or the actual day of delivery to the customer, so this isn’t an issue.
Additionally, when a car is registered this starts the clock ticking for a car’s warranty and MOT. A vehicle warranty acts to protect the customer against any issues, problems or defects which arises through no fault of their own. This isn’t there to cover the cost of any servicing and tyres. Indeed, a customer must ensure they service and change the tyres appropriately on a vehicle otherwise they could invalidate the warranty the vehicle.
For electric cars, there is a separate warranty for the Lithium-Ion battery (manufacturer dependent.) So how long do I get a warranty for? This will depend on the manufacturer. While most will commonly three years form the date of registration, there are others who offer four, five and seven respectively.
In addition to all of this, the date of registration will start the time for an MOT. This is due on the third anniversary of its registration (https://www.gov.uk/getting-an-mot).
Failing to adhere to an MOT test will mean a fine of up to £1000.
So how does a pre-reg work? Essentially the finance company, or dealership, are arranging for the vehicles to be registered on a specific date.
For example we have a special offer on the BMW X1 currently and this was based on all vehicles being registered on 1 March 2019.
From this date we, and other brokers, have been selling the vehicles and will do so until they are sold out. In some cases, the vehicles will be delivered up to 3 months’ after the date of registration. The reason for doing this is that they are often conditions of the deal. In the contract hire industry, much of our best deals will arise out of bulk-offers, where a finance company purchases and registers a mass of vehicles (100-500 at a time).
For a customer this means a significantly lower rental than they would usually achieve. However, it is the responsibility of the broker/finance company to alert the customer as to the pre-registration before or during the sales process.
The main risk to the customer are the warranty and MOT period. However, as noted above, they can reduce these risks by a) selecting a 24 month lease deal; or b) including funder-maintenance.
Have a pre-registered vehicle is nothing to be concerned about. However, in the interests of treating customers fairly all the documentation should clearly state when the vehicle was registered so that the customer can make an informed decision.
In terms of the car shown here, the BMW X1 DIESEL ESTATE xDrive 20d M Sport 5dr Step Auto, this is based on the following configuration:
· Metallic – Black sapphire
· Dakota leather – Black with grey stitching
· Aluminium hexagon interior trim with estoril blue finish
· 18″ M double-spoke bicolour light alloy wheels – style 570M
· Sun protection glass
As standard the car includes a 6 speaker sound system, Bluetooth, M sports suspension, 18” alloys, rear parking distance control, BMW navigation, heated insulted tinted glass, heated windscreen washers, ASC, bake energy regeneration, CBC, collision mitigation braking system, DTC, hill start assist, active guard, attentiveness assist, automatic tailgate opening, stop/start button, electrically adjustable and heated doors mirrors, DAB radio, body coloured bumpers, body coloured externals, adaptive LED headlights, follow me home headlights, halogen headlights, LED daytime running lights, welcome home function, 3 spoke sport steering wheel, multifunction steering wheel, LED ambient lighting, warning triangle and first aid kit, sport seats, Thatcham cat 1 alarm, immobiliser and heated front seats. In terms of additional specification consider adding – sun protection glass, front park distance control and electric folding mirrors.
On the technical-side, company car and business users can note the P11d at £37,270.00 and CO2 at 126g/km. The 1995CC 8 speed auto diesel engine delivers 58.9 combined MPG (EC), 45.6 combined MPG (WLTP), 190ps and 0-62 times of 7.8 seconds. Service intervals are set at every 24 months or 18,000 miles whichever lands sooner.
Find the webs best lease deals on the awesome SUV lease car which is the BMW X1 Deals @CarLease UK – or – check out more BMW lease car reviews below…