If you are not too concerned about being the first-time owner of a car, purchasing a pre-registered car can be a very viable option. In many ways, purchasing a pre-registered car is pretty much like buying a used car, as the car is considered to be sold from the time it is first registered. However, opting to buy a pre-registered car comes with pitfalls that you should be aware of in advance.

Car performance

While some auto dealers pre-register cars and only keep them on display in showrooms, others might opt to use the cars as demonstration models before selling them later on as used cars. Ex-demo cars typically have more mileage than the showroom pre-registered cars. This means that they may also have undergone more wear and tear from frequent test drives.

If you are purchasing a used pre-registered car, be sure to have it thoroughly inspected by a trusted mechanic to help you know how well the vehicle was taken care of by the dealer. This is because some unscrupulous auto dealers are likely to quickly let go of a vehicle if it breaks down frequently, passing the trouble of doing costly repairs to unsuspecting buyers. There may be something wrong with the car that the seller won't let you know about to ensure you make the purchase.

Warranty

Every brand new car comes with a warranty. The warranty is effective from the moment when the vehicle is initially registered, and so you might be purchasing a car with only a few years of guarantee remaining. You will miss out on the various finance incentives manufacturers tailor around new cars, and you won't have any discretion over the car's specification. This will make it harder for you to re-sell a pre-registered car.

Resale value of the car

The one thing you can be sure of above everything else when buying a pre-registered car is that you are obtaining a used car, and this will have implications on the eventual resale value. Even though you will part with less when you are buying the car initially, be ready to get much less for it when it is time to sell it again, as it will already have two owners indicated in the log book.

Buying a pre-registered car is a viable option if you are aware of the above-discussed drawbacks, and you are still convinced that you are striking a good deal.