How to... save a packet on a pre-reg - Why the big secret?

The DVLA doesn't like pre-reg and is at pains to point out that it's a legal requirement for a dealer to notify them as soon as a car is sold.

It advises: 'If you purchase a new pre-registered vehicle, the dealer must return the Registration certificate (V5C) immediately so that the vehicle can be registered in your name.'

The problem of dealers selling pre-reg cars within the retention period is well known within the industry.

Last year the Office of Fair Trading (OFT) issued a warning letter to car manufacturers about the early selling of vehicles, and the OFT is working with the DVLA and the Retail Motor Industry (RMI) to try to resolve the issue.

Alistair Manson, head of the RMI National Franchised Dealers Association, told What Car? 'It's an industry problem, and it does go on.'

Buying pre-reg is unlikely to affect its residual value. An extra owner on the logbook shouldn't be an issue for buyers as long as the name is that of the supplying dealer. Buyers want the whole story and if there are question marks they'll steer clear.

You need to be wary of pre-regs that were first sold to lease or hire companies. Many buyers assume that a hire car will have led a hard life and so not cared for. They might be unwilling to pay the asking price.

Buying a pre-reg less than three months old is the most risky option. Many internet companies and brokers will let you order a car to your personal specification on the understanding that it will be pre-registered before it's delivered.

Because some manufacturers don't like their dealers pre-registering, they can delay manufacturing the cars, or take disciplinary action against the garage.

There's also a possibility that the dealer is not be able to supply the car you want and will therefore try and fob you off with a different specification or put the price up.

Going down the pre-reg route can be more complicated than ordering a new car from a dealer.

Many internet brokers and supermarkets advertise large number of pre-reg cars but, because third parties are involved and problems with ordering the car and delivery, delays are not uncommon.

Some brokers view pre-reg cars as a necessary evil. One broker who wished to remain anonymous told What Car?: 'As a leading broker, we would prefer to concentrate on selling brand-new cars supplied direct from franchised dealers, but because the market is so price-driven we are forced to offer pre-registered vehicles in order to compete.'