There is a common misconception buying a car in December – and trying to get the best discount deal – but leaving it with the dealership to be registered only in January will improve resale value because the car is a year’younger’.
The National Automobile Dealers' Association (NADA) has moved to correct a widespread but mistaken belief that delaying a new car’s registration can improve its resale value by altering its model year.
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Many car buyers operate under the assumption if they purchase a vehicle late in the year and only register it in January, the car will be officially recognised as the newer model year, potentially making it more valuable on the second-hand market. According to NADA, this practice is based on a false premise and only serves to needlessly delay the customer taking delivery of their new vehicle.
Thembinkosi Pantsi, National Vice Chairperson of NADA, explains the confusion stems from a mix-up between the manufacturer’s designated model year and the administrative date recorded on the country’s traffic system.
“The authority to declare the model year of a vehicle lies solely with the manufacturing plant where it was built,” says Pantsi. “This model year is determined by the production schedule and specifications, and it does not change based on when the car is sold or first registered.”
The association highlights the role of the National Traffic Information System (e-NaTIS), governed by the National Road Traffic Act. The Department of Transport has stated previously the e-NaTIS vehicle register does not keep a record of a vehicle’s model year or year of manufacture.
Instead, the system records the date of liability for first licensing, which is printed on the registration certificate issued by licencing authorities. This date is often misinterpreted as indicating the model year.
“Consumers should understand that holding back registration until the new calendar year has no effect on the car’s official model year,” Pantsi clarifies. “That model year is effectively stamped at the factory. The calendar date on the registration certificate is an administrative marker, not a manufacturer’s designation.”
On the question of resale value, Pantsi notes the used vehicle industry relies on the actual model year as defined by the manufacturer and identifiable through the Vehicle Identification Number (VIN). A later registration date does not alter this fundamental detail used by valuation guides and dealerships.
Colin Windell for Colin-on-Cars in association with
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