Pre-registered cars: the rules

13 February 2006

Dodgy dealers holding on to V5C after cars sold
New owners cannot produce valid V5C
Attempt to clarify rules made by retail groups

Make sure you get your V5C when buying a pre-registered car

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Consumers tempted to buy pre-registered cars could find themselves in trouble because of unscrupulous dealers holding onto registration documents.

Many are tempted to buy pre-registered vehicles because of the high discounts that they carry.

These are new vehicles that are registered to a dealer, garage or third party before being resold to general buyers. However, some pre-registered vehicles are not supposed to be sold within three or more months of their first registration.

Unscrupulous dealers are selling the cars without completing the V5C registration documentation in order to pretend they still own the car, avoiding penalties from the manufacturer.

This could then lead to problems for the car's new owner if they are stopped by the police or have an accident and cannot produce a valid V5C.

In an effort to end some of the controversy over pre-registered car sales, the Retail Motor Industry Federation (RMIF) is attempting to clarify the rules for car buyers.

The RMIF has been working with the Office of Fair Trading and the DVLA to try and clarify the complex rules that surround the pre-registration and then reselling of cars.

The RMI wants to help identify and punish the dealers who flout the regulations.

What Car? has been investigating the problems of pre-registered cars, and a feature showing just how much you can save on a pre-registered car, along with advice on what to do if you get caught out, will be in our New Reg issue, out July 8.