Getting a margin loan

How Buying A Pre-Reg Car Could Save You Money

If you want to buy yourself a brand new car, you could save money by considering a model that's classed as a 'pre-reg' vehicle.  Pre-reg cars can be financed in just the same way as show room models, through taking out a car loan, signing a hire purchase agreement, or borrowing money from your bank.  But what are pre-reg cars and why do they work out so much cheaper?

Pre-reg vehicles

Pre-reg cars are basically vehicles that are used to artificially meet dealership sales targets.  The dealer 'purchases' the car and then registers it to the dealership.  As this is recorded as a 'sale', it will count towards the dealership's target.  If this target is met or exceeded, the dealer will be paid a bonus.  With bonuses typically netting car dealerships more profit than from purely selling cars, pre-registering is a very popular way of generating extra revenue for the dealer.

As the vehicle has already been 'sold' once, it then has officially had one owner.  This means that you can obtain a brand new 'second hand' car that actually has never even been out on the road for a large discount!  And because the vehicle is still regarded as a new car by the dealership, you'll still be able to obtain a new car loan or other attractive finance package.

Where to find a pre-reg car

The easiest way of locating a pre-reg car is to ring around a few dealers and ask if they have any in stock.  Expect to be offered a good discount of around 20 per cent, possibly even more if the model is unpopular or has been in the showroom for over six months.

It's also worth asking the dealership if they have any road test models or showroom vehicles for sale.  These are usually pre-reg cars too, and may come in even cheaper if they have a few miles on the clock.


The main disadvantage of buying a pre-reg car is that you can't order specifics.  In other words, what you see is what you get as regards colour and trim.  In addition, any warranty that is offered on the vehicle will be valid from the day on which it was originally registered, not from the day you buy it.

When you come to sell the car, it will be registered as having two former owners, rather than just one, which could reduce the re-sale value.

In conclusion

If you're looking for a brand new car but you don't want to take out a hefty car loan in order to finance your purchase, you may want to consider a pre-reg vehicle.

About Me

Getting a margin loan

I am really eager to build up my investment portfolio. I'm still pretty young, so I think I'm in a good position to take some calculated risks. I already own an investment unit with mortgage on it, and now I'm taking out a margin loan so that I can buy a share portfolio. This blog is all about getting loans and financing so that you can gear up your investments and make higher returns. I am excited about growing my investments. This blog will be useful for anyone who is looking to make use of investment loans such as margin lending.