How to... save a packet on a pre-reg - Why do dealers sell pre-reg cars?

Historically, pre-registered cars were used by the motor industry to help make up sales at important times of year.

The cars are registered to a dealer or associated company and so, technically, have already been sold.

Because of this they can then be 'resold' to private buyers at competitive prices once they have been retained for a set period of time – usually between three and six months.

Dealers are allowed to give discounts on cars if they're for business fleet customers and car hire firms and because new car sales have been at their lowest for five years, some dealers are being tempted to 'bend' the industry rules and part with a pre-reg before the agreed retention period is up.

Under Office of Fair Trading rules, they're not allowed to do this, so garages hold on to the V5Cs under the pretence they still own the car.

This means that you could buy a pre-reg car and drive it around for up to six months without having a V5C registration document.