Car manufacturers just can’t help themselves, can they? Building cars, that is. Whether sales are up, down or indifferent, there are factories to feed and workers to keep busy.
Something has to be done with all those cars and there is only so much that compounds or airfields can take, which is why dealers are persuaded to register some of their allocation and rental fleets are asked to take them on. These, ladies and gentlemen, are nearly new cars (NNC). As new, but with a filled-in V5 log book and often a fairly marginal mileage. So the asking price for what is either a dealer demonstrator or pre-reg car will be rather less than full retail price. New in all but name. What’s not to like? We say: buy while stocks last.
Mazda MX-5 1.5 SE-L Nav RF
Cost new: £20,535. NNC cost from: £17,999. Mileage range: 100-3000
As we all know and accept, the MX-5 is the single greatest roadster ever invented. The simple fact is that more people buy these when it is sunny, but an RF is the obvious all-year-round option. They are a tad better value of the current crop of pre-registered ‘demonstrators’. Pop along to your local dealer and see what they have on the forecourt.
Ford Mondeo 2.0 TDCi 180 Vignale
Cost new: £29,745. NNC cost from: £21,970. Mileage range: 11–5000
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Fleet use more so than unpopular
"Always remember that cars are pre-registered for a reason, often because of oversupply, a cancelled order, the end of a range, or being simply unpopular." Emmm I noticed alot of the examples had upto 10,000 miles meaning possible rental car use etc with the usual ding and dent repairs. Needs to be born in mind along with half worn tyres and an upcoming service.
xxxx wrote:
Brand names in car rental disposing of vehicles with half worn tyres?. That'll mean they have around 3-4mm then, from the 7-8mm on new tyres. So what is the problem with tyres that are on average at least twice the minimum (1.6mm) legal limit?. If still unhappy with that, then use your negotiating skills to good effect. Most reputable rental firms do NOT/can NOT rent out cars with what you cite as having ding & dent repairs. Why?. Simple, because the next renter will not put up with the potential conflict, trying to convince the site manager that the damage was already in place and not their fault. That industry cannot afford not to keep their cars looking and running very well...word soon gets round and furthermore, many inc Hertz & Avis actively remarket their defleeted cars/vans direct to the public, who will not buy any ex-rental vehicle unless it can be shown to have been very well looked after. Can you actually point to a single physical vehicle with around 8-9,000 miles, being described/sold as "pre-registered", never mind "a lot of examples"?.
Happy to retract my critisism, if you can come up with all these proofs of the examples you cite.
i8
Just replaced my four year old i8 with a slightly used Gereration2 i8 Coupe ( a very rare beast as it seems only the Cabriolet version is selling now in the UK ), the new car had done 2400miles and lost roughly £38/mile during that period , taking the purchase price from £125K down to £77K ! That’s Depreciation !!! I’m over the moon with the car, subtle changes to the springs,dampers and anti roll bars plus recalibrated power steering have added to the driving experience, along with crazily expensive Laser Headlights. If you “get” the i8, which I clearly do, mine was an astonishing bargain ! Thank you Sytner Leicester for the amazing service .
No VAT
New cars 'attract' VAT at 20%, while anything already registered is not new so does not attract VAT.
So, anything already registered shoud be at least 20% cheaper than new just because you don't pay VAT.
Take the first car lsited here: Mazda MX5 at £20535. The manufacturers list price without VAT should be £17,112. The supposed 'deal' of an NNC at £17,999 is a great deal....for the dealer. They recover the VAT then make more margin selling you the NNC than the new one.
Halfabee wrote:
gentle Halfabee, I agree with you that the new cars contract 20% VAT, while everything that is already registered is not new, so it does not attract VAT.
Halfabee wrote:
Perhaps check that no VAT on used cars?. Ask any dealer and they should confirm that they have to charge VAT on sales because any dealer with any turnover has to charge VAT, they are over the threshold. Private buyers have no control over VAT and should not use it as a factor when buying. It is depreciation that is the factor if anything.
Takeitslowly wrote:
doesn't a dealer only pay VAT on the profit margin of the car? The VAT on the car will have already been paid when new, so cannot be charged again.