A pre-registered car or commercial van is a vehicle that has been registered to a dealership or finance company before being purchased or leased to a customer. These vehicles are not used in the conventional sense and most funder apply a 90-day rule to pre-registered vehicles, whereby they price them the same way they do non-registered vehicles as long as they are delivered within 90 days. This means you do not pay more for your vehicle lease if it has been pre-registered.
Pre-registered vehicles may offer cost savings to you the customer as many are pre-registered in order to attract additional discounts. In many cases, these vehicles are purchased in high volumes which attract substantial discounts to the funders that are purchasing them. These savings are passed to the end users, resulting in lower monthly rentals.
Pre-registered vehicles are generally available for quick delivery, avoiding lengthy lead times waiting for factory orders to be built and shipped to dealers.
Funder servicing and maintenance packages are suitable for Pre-registered vehicles. Funder maintained options allow you to spread the cost of all routine servicing & maintenance, as well as tyres over the term of the lease agreement and avoids the financial burden of large one-off bills. They are also convenient as all work can be scheduled via an online portal or by telephone and saves you the time in locating suitable garages to carry out the work.
The maintenance agreement will also pick up the cost of the MOT & services that will need to be carried out earlier in the lease for pre-registered vehicles. These agreements may also pick up any work required that is no longer covered by a vehicle warranty (please bear in mind servicing & maintenance agreements do vary with each funder so it is important to check the level of cover is suitable before entering into any agreement).
As the vehicles have already been built, the specification and colours are not changeable. It is highly recommended that the customer makes independent checks on the vehicle specification via the manufacturers website to ensure suitability.
The warranty cover is reduced as vehicle warranties commence from the point of first registration.
The vehicle will be due an MOT on the 3rd anniversary of registration, this will result in an additional cost and the inconvenience of having to get the vehicle to the MOT centre.
The vehicle may require a service earlier than a non-registered vehicle. Pre-registered vehicles that are leased may have to be serviced more frequently within the period of the lease than non-registered vehicles.
The options for pre-registered vehicles are generally the same as those for a standard lease.
At the end of the agreement, you return the vehicle to the leasing company & are free to lease a brand-new vehicle of your choice. If you wish to keep the vehicle for longer, there might be an option to extend the contract either formally for an agreed fixed period, usually 6 or 12 months, or on an informal basis, where the contract rolls over on a day-to-day basis, until you are ready to hand back. In either scenario, the cost of the contract may change. Some leasing companies also offer options to purchase vehicles, although this is not always the case.
You do need to bear in mind the impact of the warranty and MOT for pre-registered vehicles if you do consider extending for a further period.
It is the responsibility of the broker to provide the customer with all the information they need to make an informed decision in respect of the vehicle and the leasing agreement.
Many customers will utilise the services of a broker when searching for a new vehicle & contract. A broker may have access to multiple leasing companies with special offers and preferential rates and should be able to offer you competitive contract hire rates available, often better than an individual or a business is able to access directly with manufacturers or dealers.
The broker will be able to offer you quotes on every make & model and be able to assist you in finding the most suitable vehicle and funding method for your business.
The broker will take you through the funding process and arrange the credit required to purchase the vehicle, They will also source the vehicle with the best discounts available and guide you through the process from quote to delivery stage.
Once the vehicle has been delivered, most brokers will try to assist with any mid-term contract requirements, and help with end of contract needs, such as returning vehicles or arranging extensions. Please bear in mind it remains the responsibility of the customer to ensure their vehicle is returned at the end of the agreement. It is the customers responsibility to ensure the vehicle remains within the agreed annual mileage and is maintained in accordance with the manufacturer’s guidelines.
It is the responsibility of the customer to ensure they have checked the vehicle & the specification is suitable for their purposes and to ensure they understand the terms & conditions of the lease agreement and the financial commitment involved.
A broker has no control over when vehicles will arrive or become available for delivery and cannot be hold responsible for any delays in your vehicle being delivered or related costs.
A broker is not responsible for ensuring the customer remains mobile. It is the responsibility of the customer to provide themselves with adequate travel provision until their new vehicle has been delivered.
A broker is not a vehicle supplier or a manufacturer and is not responsible for arranging, or paying for any maintenance, servicing & repair costs or warranty issues. Once the vehicle has been delivered, the customer is responsible for the vehicle throughout the period of the lease.
Brokers are generally not tax specialists and it is recommended that customers seek professional advice before entering into any leasing agreement.
The manufacturer and their dealer networks, not the broker, are responsible for the quality and reliability of their products and for providing the customer with a high level of service in the event of any technical difficulties or breakdown. A broker will generally do what they can to assist with any technical difficulties but cannot directly resolve any vehicle issues post-delivery. A broker is not a lender and does not provide or dictate the terms of a lease.
It is not the responsibility of the broker to ensure their vehicle is returned at the end of the agreement. It is not the responsibility of the broker to ensure the vehicle remains within the agreed annual mileage and is maintained in accordance with the manufacturer’s guidelines.