Pre-registration

[keith100]

Seen a couple of remarks about this recently in threads.

I guess I know what it means, technically, but why do dealers do it?

Haven't they just turned it into a used car?

 

[Mark A]

They need to meet targets for how many cars they buy from the manufacturer. If they don't meet these, they can loose the franchise. So it is better for them (if it looks as if they won't meet these targets) to buy them themselves and then sell them as pre-registered.

 

[television]

As Mark above, it goes on here a lot when things are slack,,I even believe that Ford themselves did it a few years back

 

[jberks]

Haven't they just turned it into a used car?

Yes, that's exactly what they are doing. But, dealers have a target. If they hit the target, the get a discount on all the cars they sold. If they miss, then every car they sold has effectively cost them substantially more than they planned, and they're in trouble.
So, it can pay them in some cases, to virtually give the last few cars away, just to hit the target and use the bonus to cover the cost.

So, what they often do, is buy them themselves, register them and then sell them at near cost. They then get the discount on all the other cars sold that quarter, so don't care if they make no profit on the last few.

I was working at GM Finance last year and their staff all get new Vauxhalls and Saabs every 6 months for virtually nothing. When they pick up their new car, they sign the order for the next one at the same time. The cars then go to the dealers to be sold as used. These semi-fake new sales are added to the overall total and allow GM to claim bigger sales and hence more popularity than they could otherwise.

 

[Dosco]

Yes, that's exactly what they are doing. But, dealers have a target.
I was working at GM Finance last year and their staff all get new Vauxhalls and Saabs every 6 months for virtually nothing. When they pick up their new car, they sign the order for the next one at the same time. The cars then go to the dealers to be sold as used. These semi-fake new sales are added to the overall total and allow GM to claim bigger sales and hence more popularity than they could otherwise.

You don't just find out to fix a Merc here do you, all as I can say is 'strewth'

 

[rf065]

As JBerks says, meet your target & get the big discount, if it looks like you're going to miss it by a couple of cars, sell them to yourself. And its been happening for many a year too.

The other one from Ford & GM, buy a car rental firm and buy your own cars for that too, then renew them every 9 months. Everyones a winner.

Next, buy your own own finance company, then when the car plant makes a loss, the finance arm props it up. Brilliant.

Russ

 

[keith100]

Thanks for all the replies.

Our dealers have the same target/rebate system too, but since they have to buy all their cars from the maker anyway, the last few just add to his inventory (but likely get sold at a loss). But nothing is "registered" until you and I step up with the readies and want to put it on a public road.

Thanks again

Keith

 

[Splatt]

You have to catch the dealer at the right time of the year. I know that 31 Dec is one of their accounting points. If you go into the dealership early in Dec and take an interest in on of their pre-reg cars , often called demonstrators but with only delivery miles on the clock and take del before 31 Dec they will heavily discount the price. Particularly if you haggle.

 

[jon_harley]

I imagine December's a bad month for car dealers anyway, what with the closed days and people spending their money on presents and overeating.

 

[David Nock]

As I got a 54 plate 5000 mile demonstrator CLK in spring 2005, I see a demonstrator or pre-reg as just an extention of the showroom stock, except there's a few grand saving.
The only issues are that you can't choose extras and the colour choice is the stock choice.
Next car? Maybe I'll spec up a new one and make it my last new car?

 

[stumpy]

I imagine December's a bad month for car dealers anyway, what with the closed days and people spending their money on presents and overeating.

Indeed - and even more so these days. Bentley West Country has gone bust which was a shock to me, and BMW have scaled back production of the mini. Must be because Foxtons are'nt selling any houses anymore