What is a nearly new car and why is it a good option?

Buying a car is a huge decision that can impact on both a person’s wallet and quality of life for years afterwards. There are so many options out there, that it can be difficult to know which are reliable and cost-effective, and which are potentially risky.

“A nearly new car” is one of those motoring phrases that seems to say all that you need to know, but is often not fully understood. So, here’s our guide to nearly new cars and how they could save you a packet on your next car purchase.

What defines a ‘new’ car?

A new car means a vehicle that has not previously had a title issued to anyone (whether that’s a dealer or another driver). In order to show that ownership of the vehicle has never been officially transferred, the car should only be recorded in the manufacturer’s ‘statement of origin’.

What defines a ‘nearly new’ car?

A nearly new car will have one prior owner recorded. But note: this must be one of the parties listed below and cannot include previous private ownership by someone using the car for personal transport (that would be called a ‘used car’). A nearly new car might have been owned by:

• A dealer, wholesaler, fleet manager or manufacturer
• A person who has purchased the car to immediately re-sell it

There are two main types of nearly new car on the market: pre-registered and ex-demo.

Pre-registered

With pre-registered cars, the dealer, manufacturer or fleet manager will place an order for the car with the manufacturer, so that they can either sell it on to the public or transfer ownership as part of a company car scheme.

This process requires registration and would technically make you the second registered owner, however this doesn’t define whether the car will even have any miles on the clock. The first registered owner is likely to use this method to buy cars in bulk, and will be looking to sell them on within as little as 3 – 6 months after initial registration of the vehicle. This enables dealers to maintain a steady throughflow of vehicle units, while buyers are likely to save thousands of pounds off the manufacturer’s listed price.

Ex-demo

An ex-demo (ex-demonstration) car will have one previous registered owner in the same way as a pre-registered car. However, these vehicles will have been used by the dealership for display, most probably for test drives. This means that they may have more miles on the clock and may have been held at the dealership for longer, but they are superbly maintained and come with top spec features.

What are the benefits of a nearly new car?

Initial cost

The key benefit of purchasing a nearly new car is definitely price. A combination of the previous registered owner, depreciation, delivery/test-drive mileage and dealer incentive means that the total cost for a pre-registered or ex-demo car can be as little as 70% of the original price.

Depreciation

Cars depreciate on a sliding scale from the moment that they leave the production line. While immediate re-sale means a big financial loss, as time passes and a previous owner is added, this depreciation levels off, meaning you will withhold more value for re-sale as the second registered owner. This is also an incentive for the dealer, who will want to move the car on before it depreciates further.

Practicality

The cost savings on a nearly new car gives you the scope to consider options that might not have been open to you before.

The Dacia Sandero is a fantastic car for a specific purpose – a cost-effective purchase that is subsequently cheap to run. Dacia have made no secret of achieving this by cutting out some non-essential features, such as the radio on the basic spec, as well as some more advanced safety features. However, a 30% saving would push you up into Ford Fiesta and Vauxhall Corsa territory, both of which would be a more practical solution for a family, also featuring spritelier engines for young drivers.

Condition

While a car may have some miles on the clock, buying nearly new shouldn’t be considered in the same bracket as purchasing a used car. It’s in the dealer’s interests to keep the car in top condition with a complete service history in order to maintain value.

Choice

Choosing a car can be tricky nowadays. Manufacturers frequently feature five or more different spec ranges, each with individual sub-packages, and that’s before you’ve even selected which engine best fits your needs. With a nearly new car, you get the benefit of a car selected by experts, intended to showcase the best that the manufacturer has to offer. Trust your award-winning Perrys dealership to help you make the best decision.

With so many benefits on offer, it’s clear to see why the nearly new car market is popular. From price to practicality, a nearly new car could be the difference between getting the car you can afford, and getting the car you love. If you’re on the lookout for more expert advice on buying a nearly new car, why not stop by your local Perrys dealership today?