Dealer Wants to Remain Registered Keeper for a Few Months

[HazardLights]

Hi,

My UK dealership gave me a really good discount and apart from not getting the software upgrade that was part of the deal the car seems to be good. When I got the electronic paperwork through on the day I received the car I queried it being registered to a board member at the company. I was told I own the car but a condition of the discount was pre-registering and they need to remain registered for a "few weeks" and I will be registered as the keeper in "a few months". I am a very literal person so not very good with salespeople who are usually socially the opposite and communicate in broad terms. I am not naming the dealership as, although unorthodox, I have had a good deal and this way I can freely talk without anyone being embarrassed. However I would like to understand what is happening and have not been able to get a clear answer. Does anyone know what is happening here and if I am okay?

My guess is that dealers either have terms limiting discounting from MG or have access to cheaper pricing when they pre-register a car and somehow to appear to be keeping to MGs rules they need to remain the registered keeper. However I don't know how this works at all. Can anyone help?

Thanks,
HazardLights

 

[siteguru]

Back in 2015 Honest John had this response:

Leave the car with the dealer and demand your money back in full. He has cheated you by selling you a car registered to the dealership as a 'demonstrator' in order to secure a bigger discount from the manufacturer. He is in breach of The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) that creates an offence of 'misleading omissions'. See: www.honestjohn.co.uk/faq/consumer-rights/

The RAC say this:

Make sure you leave the dealer with section 10 (new keeper supplement) of the V5C/2, as the DVLA will need to be notified about the change of keeper details. Also, the warranty and breakdown cover will need to be transferred to your name, so ensure this happens.

My take is that the dealer is pulling a fast one to secure a bigger discount from the manufacturer, classifying the car as a demonstrator but selling it much earlier. (Demo cars are expected to be kept by the dealer for a minimum time frame).

A couple of other relevant links:

Retaining pre-reg logbooks is 'putting car buyers at risk' – Car Dealer Magazine

ACCORDING to a BBC investigation, car dealers selling pre-registered cars and retaining logbooks for up to 90 days are putting consumers at risk.

cardealermagazine.co.uk

https://www.honestjohn.co.uk/forum/post/index.htm?t=42263

 

[HazardLights]

I phoned the DVLA and they told me they had never heard of a dealer doing this. I said that I didn't want to break the rules by failing to notify them of anything and they replied that I had no duty to inform them and that it was the dealers duty. I asked if I should just use the DVLA website to inform them of the change and I was told that if I should not as it's not meant to be me but the dealer that informs them. I was advised to leave it for now but if it drags on for months then I should contact the DVLA again. The questioner on Honest John appears to have been given contrary advice. I feel torn between being embarrassed that I am an annoying good boy scout (or a snitch!) and deeply uncomfortable about the feel of the situation.

Whilst I may find a few niggles with the car as the next few days pass I am very happy overall with it and don't intend to say goodbye to it. There must be a better answer than the one Honest John gives.

I also noted that the VED status check website says it was built in 2024 (as I told my insurer) but the Certificate of Conformity says it was manufactured in September 2023. Is this an issue?

 

[slmorgan42]

My only concern would be with your insurance as I may be wrong but you technically do not own the car until is registered in your name.

I would get something in writing that are aware of this and you are in compliance with the insurance policy.

 

[HazardLights]

When I learned yesterday I went onto my insurance policy website and changed my answers from:

1. Registered keeper is me
2. I own the vehicle

...to...
1. Registered keeper is a "Company" (their drop down answer)
2. I own the vehicle (unchanged)

... so I believe I am okay with insurance. The vehicle has VED. DVLA say I am not in trouble with them. So I am wondering if the answer is to email the dealer saying that I want a committed date for when the vehicle registration will be moved to my name. I think with documentation (that I should never need) that they are committed to the transfer then I have no objections to digitally signing the outstanding "handover form".

Does that seem reasonable or am I blind to a risk?

 

[siteguru]

My only concern would be with your insurance as I may be wrong but you technically do not own the car until is registered in your name.

I would get something in writing that are aware of this and you are in compliance with the insurance policy.

There is no register of owners ... anyone could own a car with you as the registered keeper. Take cars on PCP/linked finance for example - the finance company is the owner of the car until the finance is paid off (or the car is returned), yet the finance customer is still the registered keeper.

The dealer in this case is doing what they're doing for the exact reason I stated. It's up to you @HazardLights as to whether you are comfortable with this, especially as they didn't forewarn you.

 

[5teep]

When I learned yesterday I went onto my insurance policy website and changed my answers from:

1. Registered keeper is me
2. I own the vehicle

...to...
1. Registered keeper is a "Company" (their drop down answer)
2. I own the vehicle (unchanged)

... so I believe I am okay with insurance. The vehicle has VED. DVLA say I am not in trouble with them. So I am wondering if the answer is to email the dealer saying that I want a committed date for when the vehicle registration will be moved to my name. I think with documentation (that I should never need) that they are committed to the transfer then I have no objections to digitally signing the outstanding "handover form".

Does that seem reasonable or am I blind to a risk?

Insurance co. might charge you a fee later on to change the details again.

 

[tsedge]

I understand it feels uncomfortable but the dealer has essentially pulled a scam here by the sounds of it. Pre-registered cars are worth less as they have more owners on the history.

I would never accept a car without all the relevant documentation.

I would contact MG and complain and ask them to investigate.

 

[Lovemyev]

As stated above, when dealers place orders on new cars, they can order for stock / customers or demo vehicle.
They receive a big discount on demo vehicles of course, but they are usually bound to retain the vehicle for a predetermined time scale BEFORE selling them on.
This is usually about 90 days but can vary.0
If they sell on the car before this date, they could be asked to make a back payment.
In the OP’s case, this is very likely what the dealer is trying to avoid !.
Retaining the car in their name, until the dust settles, then they will transfer ownership over to the new and rightful owner.
I have always had the documents transferred into my name straight away.
I would insist that the dealer does this instantly or provides a switch over date.
If the car is still registered in the dealers name, what happens if you are caught speeding ?.
The prosecution will be mailed to them, which could then get a bit messy if you rejected it ?.
When a new model is about to be released and when dealers expect it to be in high demand, they will place a pre order for as many models as they are permitted to do so.
Some MAY have customers names against them, some are in the name of John Dooh or ordered as Demo cars.
This is easy if you have more than a single site selling the same make.
Pre registered cars have been a thing for many many years in the industry, and will continue to be so in the future.
There are many financial reason's why dealers carry out this practice TBH.
Over the years, I myself have bought a few pre reg cars.
These have all had less than 20 miles on the clock and offer good value for money.
I found very little difference in the selling price, at the time of resale.
Nobody is overly concerned if it has a previous dealer named as the first owner any more, as this practice is common place.
The trade in value maybe slightly less, but if you have received a big discount on the purchase price, then it’s all relative.
Only this week a close relative has just bought a loverly pre reg Volvo EV that has only covered 88 miles.
It was ordered with some really nice factory option fitted as well.
Brand new screen price on this car £47,000.
Price paid on collection day £33.000.
I think that’s a very good price in my book.
Pre reg - Yes.
Bothered - No.
It is worth remembering, that the only people who make money on cars, is the people selling them and not the people buying them ?.

 

[siteguru]

Buying a pre-reg isn't the problem in this case ... it's the fact it's a "demo" car that is still within the demo period so the new owner isn't being registered as the keeper at the right time. This has all the pitfalls you mention (and probably more).

 

[djenson]

You're getting a brand new car that hasn't been ragged about as a tester for what sounds like a large discount because the dealer is cheating the system. Other than the above "issues" such as PCNs and Speeding tickets being sent to the dealer which then need to be given to you, and changing the insurance (which you already have updated) I honestly can't see an issue for you. You could tell MG as suggested, but for what? They've given you the brand new car for the discount. If found out, it's the dealer in trouble, not you.

This being said, very cheeky not for them to of told you how you are getting this discount in advance. i'd be a bit miffed about that.

 

[Lovemyev]

I totally agree, I was responding to Tom’s note that pre reg cars can be worth less than unregistered cars at the time of resale, due to fact that pre reg cars have a first ( dealer ) owner appearing on the V5 ?.
It can work both ways.
Pre reg cars are a better option than a demo model.

 

[HazardLights]

I will be happy if I can get a date ideally by the end of 2024 but certainly within ninety days. I think the difficulty will arise from the fact that they want to keep it on their books for six months. I expect it can all be settled amicably. I cannot dispute that the car and price are both good (some minor "snags" aside that I have booked a service with my local dealer for).

 

[tsedge]

I totally agree, I was responding to Tom’s note that pre reg cars can be worth less than unregistered cars at the time of resale, due to fact that pre reg cars have a first ( dealer ) owner appearing on the V5 ?.
It can work both ways.
Pre reg cars are a better option than a demo model.

I agree it may be worth the discount to have a pre-reg car (I have done that myself in the past). But I was objecting to the dealer's apparent underhand behaviour in trying to have their cake and eat it by passing off a demonstrator as a customer car.

I would be uncomfortable not being able to be the registered keeper for any length of time.

 

[Lovemyev]

A lot of smoke and mirrors going on if you ask me Tom !.

 

[emmrecs]

Totally agree; this seems at best dubious, at worst dishonest behaviour by the dealer.

My wife bought her MG3 (not the Hybrid) at quite a discount off the list price (at least £1500), in November 2023, pre-registered (September 23) and there was no question about whose name was to be shown as the registered keeper on the V5C.

 

[Alb]

Sounds to me like the car has been procured on fleet terms meaning it can't (in theory) be passed on before 6 months. I bought a car through a broker on this basis back in 2006.

 

[tsedge]

I have no problem with these kinds of arrangements - so long as they are above board and declared in advance.

 

[Alb]

Yes, in my case it was all declared up front.
There were no issues arising from the arrangement other than saving a shedload of money on the purchase price of the car!

 

[Shrink Proof]

So you paid for a new car but it's not legally yours. OK, fine.

Anyway, perhaps you'd be interested in this bridge I have for sale...