Should I lease a pre-reg car? Is this something I (or my business) should be concerned about? Thank to you Mercedes South-West, one of our preferred Merc suppliers, for supplying pictures of one of their amazing AMG performance models – the AMG C-Class Coupe.
As a broker, not a lender, we work with a select number of finance companies and dealerships.
For the customer they need to understand that we do not own the cars nor do we carry our the pre-delivery inspections and logistics.
Essentially, we sit in the middle of the transaction and ensure that our customer receives a finance arrangement which is suitable and a car which meets their needs and requirements.
To ensure the highest standards of care, we are very selective with the dealerships we work alongside as they are responsible for ordering the car to your requirements and delivering this in a timely and professional manner.
Like any industry, mistakes and issues do arise and we need to have the confidence that our suppliers can correct this with our customers. While the process is not always perfect, we want to make sure that when it isn’t, we (and the dealer) are able to put it right.
So what is all the fuss about a pre-registered vehicle? The press and others involved in the motor industry can sometimes be a little sensitive about the pre-reg car; this can create some untoward confusion on the concept.
Pre-registered vehicles arise for many reasons. One of the main occurrences is for the special offers which we run. Because finance companies buy stock vehicles in considerable bulk, sometimes in excess of 100 or 200 vehicles, these will often all be registered at a specific date.
Part of this is that the manufacturer needs to be paid for the product and the other part is that it avoids any unnecessary registration exercises on an ad-hoc basis.
As most cars are sold and supplied within about 3 months’ of being launched, an expedient process is pretty much mandatory.
There are other entirely legitimate reasons for a car being registered. For example, if a customer receives a vehicle and cancels it (the specification may be wrong or the car may have an issue), this vehicle cannot always be “de-registered”. As a result, this needs to be sold at a discount to another customer. Other dealerships will offer specific programmes, like the AMG here, where cars are pre-registered for a certain period (often 6 months) and then are sold after this time period has expired.
So a pre-reg isn’t dodgy then? Absolutely not. We hope the above helps customers understand the legitimacy of the arrangement. But what else do I need to be aware of? When a car is registered, this commences two important events: 1) MOT; and 2) Warranty. Every car across the UK must receive an MOT at its third anniversary.
To help the UK public, the Government have an easy to use tool which helps ascertain if a vehicle has received an MOT or if it needs one – https://www.gov.uk/check-mot-status.
An MOT is not about servicing/maintenance per se; this is to ensure key components of the vehicle are meeting the legal standards. It is not there to check your engine/clutch or gearbox condition. Some customers get very concerned about an MOT and what we stress is that because we are dealing with new cars, if you service the vehicle correctly and in accordance with the manufacturer recommendations there should not be an issue. Furthermore, an MOT can be undertaken for as little at £40 or £50. If you do take a funder-maintained arrangement, the cost of the MOT is included.
In addition, a vehicle’s warranty begins from the date of registration. So why is a warranty important? This isn’t there to give you servicing, maintenance or tyres (as some customers think). A warranty acts to protect the customer against any issues, defects or problems which arise through no fault of their own. So long as you service the vehicle in accordance with the manufacturers recommendations and there is no evidence of misuse or negligence, the warranty is a very important protective measure.
But how long do you get a warranty for? Each manufacturer will offer a different warranty depending on the vehicle. In most cases you can expect at lest 3 years’; however some will offer 4,5 or 7 years. If you have a shorter two year contract, none of this matters as you will return the vehicle well within the warranty time. However, for customers getting a three or four year contract do need to be aware of the date of registration.
If you think the three year warranty begins at the date of delivery then you need to be careful.
In some cases you could be outside of warranty for the last 3-6 months of the contract. For the risk-averse amongst you; be careful!
In terms of the car shown here, the Mercedes-Benz C CLASS AMG COUPE C43 4Matic 2dr 9G-Tronic (Petrol), this is based on the following configuration:
Polar White Solid Paint
Artico man-made leather/Microfibre Dinamica upholstery with red contrast stitching
18″ 5 spoke aero alloy wheels in Tremolite grey
High gloss black with aluminium trim
As standard the car includes 18” alloys, AMG sports seats, artico leather, AMG spoiler, black mirror caps, green tinted glass, rain sensing wipers, adaptive brake system, hill hold and start assist, AMG floor mats, AMG sports suspension, Bluetooth, brake callipers with AMG lettering, sports steering, active park assist with parktronic system, attention assist, collision prevention assist plus, reversing camera, 10.25” display team, 5.5” instrument cluster, auto dimming rear view mirror, sat navigation system, electric adjustable/heated/folding door mirrors, DAB radio, mid-range sound system, AMG performance exhaust, adaptive brake lights, LED headlights/daytime running lights/tail lights, climate control, 3 spoke flat bottomed steering wheel, sports pedals, LED interior lights, seat comfort pack, storage pack, 40/20 split folding seats, electrically adjustable seats, heated front seats, immobiliser and alarm system.
In terms of additional extras consider privacy glass and the smartphone integration pack (Apple Car Play) or upgrade to:
Premium – ambient lighting, keyless-go comfort pack, memory front seats and a panoramic glass sunroof; or
Premium Plus – this adds the Burmester surround system, COMAND online, 8.4” colour display and internet connectivity.
On a technical side company car and business users can note the P11d at £51,680.00 and CO2 at 217g/km. The 2996CC 9 speed petrol auto engine 29.7 combined MPG (EC), 28 (WLTP), 390ps and 0-62 times of 4.7 seconds. Service intervals are set at every 12 months or 15,500 miles on the C -class AMG.