Licensing and registration

Question

yasmeenr2

Licensing and registration

If i purchase a 2020 new vehicle in 2020 it will be licensed and registered with Natis and traffic department as 2020. If i purchase the same 2020 new vehicle in 2021 it will be registered as 2021 and the resale/retail value changes as well.

Why does the traffic license and registration have such a huge effect on the value of a vehicle. Should it not be the year model of the vehicle shown on the registration documents?

Status: Open Aug 01, 2021 - 11:30 PM

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Answer

Martin

Aug 01, 2021 - 11:30 PM

Hi there

According to our legislation, a car is deemed to stem from the year of its first registration. As you rightly note, a 2020 car that was first registered in 2020 will have lower values for the rest of its life than the same 2020 car, but registered in 2021. This is obviously not an ideal situation (although it does explain the large number of new cars driving around on dealer plates towards the end of each year), but some form of standardised age classification has to exist for insurance- and warranty reasons.

If it's any consolation, this window period only exists for the duration of the dealer plate validity, which is less than a month - in this case, it means that only cars sold in December will be impacted...

Hope this helps!

The AskAutoTrader Team

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No consolation at all Martin lol....but thank you for explaining this. I fail to understand that for age classification for insurance purposes they would rely on vehicle registration date and not model date/manufacture date for value. I'm sure somehow this is taken into account like a 'fine print' section on a document. If i'm understanding correctly, i can put a 2018 model out for the 1st time in 2021 and it will be covered as a 2021 model. So....Even though my vehicle is a limited edition only manufactured in 2020, it can be registered in 2021 or 2022 and valued according to the purchase year's value. This is just plain skelm but that just my opinion hey.....

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