Tips on Buying a Car in New Zealand

Buying and owning a vehicle is a major expense, so it makes sense to do some homework before you buy. We all want to avoid a bad deal, you can start by following these general tips.

For all used vehicle purchases, from any type of seller, we recommend the following tips:

Do your homework on the market, check out as many sources of information on the car market as you can, so you get a feel for the price of the cars you maybe interested in.

Before you buy, take the vehicle for an independent mechanical check. Some motor vehicle traders may have already arranged a check of the vehicles they offer for sale. If you want to rely on this check, make sure you know when the test was done, what was checked, who carried it out and what the test results were. Once you have this information, you can then decide whether to still go ahead with the purchase; negotiate on the price to take account of any problems or ask the seller to fix any problems before you buy the vehicle, If the seller agrees to fix the problems, ask for this agreement in writing.

The New Zealand Transport Agency publishes a detailed fact sheet called Buying a Used Car, advising what to look for when checking the quality of a used vehicle. This free fact sheet is available from the Agency’s website (www.nzta.govt.nz) or from the Automobile Association, Vehicle Testing New Zealand, Vehicle Information New Zealand or On Road New Zealand.

Check there is no outstanding money owing on the vehicle.

A previous owner may still owe money to a finance company for the vehicle. You can check whether money is owing on the vehicle by checking the Personal Property Securities Register (PPSR) website (www.ppsr.govt.n4). If you buy a vehicle knowing that money is owed on it, then the finance company could take the vehicle from you.

Checking the vehicles "Warrant of Fitness" (Equivalent to an MOT in the UK)

 All sellers of motor vehicles must ensure that the motor vehicle has a Warrant of Fitness issued no more than one month before the date the vehicle is delivered to the buyer. If the vehicle hasn't got a warrant of Fitness it must be sold as "as is where is".

A "warrant of fitness" is valid for 1 year if the car is 6 years old or younger. If the car is older than 6 years the warrant of fitness will only be valid for 6 months. A warrant of fitness can be gained at your local garage if they are approved or at a purpose built testing station.  Trailers also require a warrant of fitness.

Buying a vehicle "As Is Where Is".

If the vehicle does not have a current Warrant of Fitness  it must be sold "as is, where is”. In this case, you should give the seller a written undertaking that the vehicle will not be driven on the road except for the purpose of getting a new Warrant of Fitness (this is a protection for the seller).

Buying a vehicle from a motor trader.

This section applies mainly to buying from a motor vehicle trader operating from a car-yard (car-yard trader). This information also applies to motor vehicle wholesalers, importers brokers and motor vehicle traders selling on the Internet. 

All motor vehicle traders are required to be registered under the Motor Vehicle Sales Act (MVSA).  Registered motor vehicle traders will have a certificate with their trader number on it and the date their registration expires. You can ask to see this registration certificate.  You can check whether a car—yard trader is registered by visiting the Motor Vehicle Traders Register online at www.motortraders.med.govt.nz or phone 0508 MOTOR TRADERS (0508 668 678). This service is free. You can also check the Motor Vehicle Traders Register for a list of people who have been banned from operating as a registered motor vehicle trader.

All motor vehicle traders must attach a Supplier Information Notice to every used vehicle they offer for sale. Read the Supplier Information Notice carefully - it contains important information about the vehicle you are buying (year of manufacture or import, mileage, make and model, engine size etc).  The Motor Vehicle Sales Act requires the car—yard trader to get a written acknowledgement from you that you received a copy of the Supplier Information Notice. This acknowledgement must happen as soon as is practical after the sale.