What Car? Q&A - Should I wait for V5C to arrive?

Q: I'm considering purchasing a pre-registered Toyota Verso 1.8 VVT-i TR.

The dealership said that it hasn't got the V5C as these take 10-14 days to arrive. Would you advise that I wait until I can see the V5C document?

I've already said I will only purchase the car if they agree to send the V5C to the DVLA immediately after I purchase it.

Also, what sort of discount should I expect? The list price is £16,995.
Neil Mann

A: Dealerships often keep V5C documents to avoid falling foul of Office of Fair Trading (OFT) regulations that were introduced in 2000 to limit the number of pre-registered, or pre-reg, cars.

At the time, there were lots of pre-reg cars hitting the market and the OFT was concerned they would distort the market. So, dealerships were told that they would have to retain a car for three months before selling it, to avoid it being classed as pre-reg.

Dealerships will get around the legislation by keeping the V5C for the full three months on cars that were registered the day before they were sold, and we've heard of many that will keep it for even longer.

The practice is illegal: it contravenes the OFT legislation and laws which insist that the seller sends the DVLA the V5C as soon as it changes hands.

It could also cause you headaches getting insurance quotes, or if you have a crash and need to make a claim but don't yet possess the V5C. While it's unlikely that your claim will be thrown out entirely, the Association of British Insurers says it's likely to lead to delays.

Many motorists complete a pre-reg transaction like this quite happily every year, but you do need to bear the points above in mind.

In your case, why not put a deposit on the car, wait a couple of weeks until the V5C is with the dealer and complete the transaction then? That way you can drive away with all the necessary documents in your hand and be happy in the knowledge that the DVLA can be informed instantly.

A pre-reg car should be considerably cheaper than a new car with a discount. The savings will vary from car to car, but our mystery shop last year uncovered an average saving of nearly 16% off the list price - 9% more than the discounts you can typically get on a new Verso in the engine and trim you're after.

While you might not get that much off in this case, we'd certainly expect at least 10% off as a minimum. We'd be aiming to pay £15,000 or less.