As we approach the end of the year, many consumers are preparing to use a December bonus as a down payment on a new car. These consumers will face a choice: complete the registration, take delivery of the vehicle, and enjoy a well-deserved holiday with their new car, or postpone the registration process until the new year and hopefully gain 12 months on the vehicle's model year.
Related: How to register and license your car
It has been previously documented that some confusion remains regarding the year of manufacture and the year of registration. The often-repeated, but incorrect, narrative suggests that purchasing a new vehicle late in the year and only registering it in the following year will result in the car being documented as a newer model year, thereby retaining more resale value. There is no truth in this!
Do you have to register and license a car as soon as you buy it?
Where's the confusion?
The National Road Traffic Act, 1999 (Act No 93 of 1999) and the National Road Traffic Regulations govern the information that is kept on the National Traffic Information System (e-NaTIS). The Department of Transport has clarified on previous occasions that the motor vehicle register, as operated on e-NaTIS, does not keep a record of the model year or year of manufacture of any vehicle. What the system does record, and what is often misinterpreted, is the date of liability for first licensing, which is printed on the certificates issued by Registering Authorities.
“The core of the misunderstanding lies in confusing the manufacturer-designated model year with the vehicle's initial registration details as captured on the e-NaTIS system, the only entity with the authority to declare the year of manufacture or the specific model year of a vehicle is the manufacturing plant where that vehicle was assembled. This year is set by the vehicle's manufacturer and is based on the production schedule and specifications, irrespective of when it is sold or registered,” Thembinkosi Pantsi - NADA National Vice Chairperson
What this means to you, the consumer, is that it does not matter when the vehicle gets registered, the date of manufacture and the year model are locked to the VIN.
"Consumers need to be aware that delaying the registration of a new car until the start of the following calendar year has absolutely no bearing on the car’s official model year, the vehicle’s model year is stamped at the factory and cannot be changed by waiting for the calendar to turn,"
Consumers should do their homework on the vehcile they intend to purchase and ensure that they are fully aware of the year model. The new AutoTrader Intelligence system, which runs in the back end of the website, has full access to this type of information and will accurately identify the year and model of the vehicle you are looking at, based on VIN information.
Regarding resale values, Pantsi concludes by stating that used car valuation guides and trade platforms rely on the actual model year as indicated by the VIN and assign pricing accordingly.
“A slight delay in registration, while showing a 'newer' date on the registration certificate, will not determine or change model year as confirmed by the VIN.”
