Buying pre-reg car - dealer remaining as registered keeper
Discussion
I put down a deposit on a pre-registered "new" car yesterday - 69 plate Kia GT S, 45 miles on the clock.
As part of the deal, the salesman offered me the option of the garage group staying as the registered keeper until the end of the first year, so that I wouldn't have to pay the first year's road tax. He assured me that they do this with a lot of their pre-reg and ex-demo cars, saying that they will call me a month before the tax renewal is due, then transfer the V5 into my name so that I can pay the tax. Saves me about £130 (car was registered 6 weeks ago)
It's a long-established local dealer group, with quite a few brands and locations, so I have no real reason to doubt what he said.
Is this a "thing" now?
Any potential pitfalls?
As part of the deal, the salesman offered me the option of the garage group staying as the registered keeper until the end of the first year, so that I wouldn't have to pay the first year's road tax. He assured me that they do this with a lot of their pre-reg and ex-demo cars, saying that they will call me a month before the tax renewal is due, then transfer the V5 into my name so that I can pay the tax. Saves me about £130 (car was registered 6 weeks ago)
It's a long-established local dealer group, with quite a few brands and locations, so I have no real reason to doubt what he said.
Is this a "thing" now?
Any potential pitfalls?
Why does the dealer want to remain as the keeper? What is in it for them?
If it's a pre-reg, they've done that to hit their monthly/quarterly target on which they are bonused. That's it, job done.
If that dealer goes under (it happens) they are the registered keeper of your vehicle. Good luck sorting that out.
I would run a mile from this.
If it's a pre-reg, they've done that to hit their monthly/quarterly target on which they are bonused. That's it, job done.
If that dealer goes under (it happens) they are the registered keeper of your vehicle. Good luck sorting that out.
I would run a mile from this.
Salesman told me that "we don't get a refund on the unused tax if we sell the car, so doing it this way means you get the benefit".
Is it true that dealers can't "cash in" the RFL when they sell a car?
Apparently the car was due to into their Black Friday event, but since they had it on the forecourt and it was stickered up as a "manager's special" they would sell now at the BF price. A decent discount on what is quite a rare top-spec model, and obviously pre-registered to hit sales targets.
He was quite happy for me to just tax the car and have the V5 in my name, so I don't see what they are gaining from it, apart from a sweetener to do the deal.
Is it true that dealers can't "cash in" the RFL when they sell a car?
Apparently the car was due to into their Black Friday event, but since they had it on the forecourt and it was stickered up as a "manager's special" they would sell now at the BF price. A decent discount on what is quite a rare top-spec model, and obviously pre-registered to hit sales targets.
He was quite happy for me to just tax the car and have the V5 in my name, so I don't see what they are gaining from it, apart from a sweetener to do the deal.
PurpleTurtle said:
Why does the dealer want to remain as the keeper? What is in it for them?
If it's a pre-reg, they've done that to hit their monthly/quarterly target on which they are bonused. That's it, job done.
If that dealer goes under (it happens) they are the registered keeper of your vehicle. Good luck sorting that out.
I would run a mile from this.
They've probably got discount from KIA to run it as a demo for a set period of time and are now selling it ahead of that set length of time, so want to minimise their risk with KIA,If it's a pre-reg, they've done that to hit their monthly/quarterly target on which they are bonused. That's it, job done.
If that dealer goes under (it happens) they are the registered keeper of your vehicle. Good luck sorting that out.
I would run a mile from this.
Good point about tickets and fines. Just one delayed parking ticket (losing the "discount" for early payment) and an admin fee could wipe out the RFL saving.
Increased insurance - not sure about that. Salesman reckoned it shouldn't make a difference, but I haven't phoned them to do the vehicle change yet.
I think, on balance, it makes sense to just get the V5 in my name and tax the car when I collect it.
Increased insurance - not sure about that. Salesman reckoned it shouldn't make a difference, but I haven't phoned them to do the vehicle change yet.
I think, on balance, it makes sense to just get the V5 in my name and tax the car when I collect it.
Friend had something similar with a Fiesta.
It was a demo car and Ford had stipulated it could not be retailed for a set period after registration.
We were even shown some documentation to that effect. Deal done but car could not be collected till that period had expired.
Dealer trying to avoid problems with Kia ?
It was a demo car and Ford had stipulated it could not be retailed for a set period after registration.
We were even shown some documentation to that effect. Deal done but car could not be collected till that period had expired.
Dealer trying to avoid problems with Kia ?
You’d better have the conversation well before you collect the car, they might not actually be willing/able to sell you the car without them keeping the V5 in their name. As mentioned, it’s very likely they’re gaming the ‘demo’ system and reporting to the manufacturer that the car is still theirs long after you’ve driven off in it.
Salesman specifically said that I could have the V5 in my name at any point between paying for the car and the expiry of the RFL.
I'll be going past the dealership today, so I'll pop in and let him know.
He said that the car was due to go into their Black Friday event, but he would sell now on the same terms.
I guess it's possible that they may delay the actual V5 transfer until the event starts, but I've had that happen in the past - dealers processing registration documents at the end of the month - and never had a problem.
I'll be going past the dealership today, so I'll pop in and let him know.
He said that the car was due to go into their Black Friday event, but he would sell now on the same terms.
I guess it's possible that they may delay the actual V5 transfer until the event starts, but I've had that happen in the past - dealers processing registration documents at the end of the month - and never had a problem.
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