How this guide works
The guide is separated into different topics. Not all topics will
apply to the type of purchase you want to make.
Each page contains links to other sections of interest related to
that topic. Each page also contains links back to this index page.
Contents
Information on what types of checks you should do, and what laws
apply to protect you when buying from the different types of
sellers:
And related information on:
Publications
Fit for the Road publication
This booklet is the online version of the Fit for the Road? -
What you should know BEFORE buying a motor vehicle.
Fit for
the Road? publication is available in
Adobe Acrobat format (1293 KB)
(instructions for
obtaining the viewer)
If you require a printed copy of the booklet, single copies can
be ordered from our
Publications section or pick up a copy from your nearest
Citizens Advice Bureau.
Check Before You Drive publication
This pamphlet briefly explains the main rules under the Motor
Vehicle Sales Act in eight languages (English, Maori, Samoan,
Tongan, Chinese, Nuiean, Arabic and Korean).
The Check Before You Drive pamphlet is only available in
Adobe Acrobat format (387KB)
(instructions for
obtaining the viewer).
Before you start
Buying and owning a vehicle are 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:
- Doing your homework on the market.
Spend time checking out the vehicle market - talk to friends and
family, read newspaper ads and visit traders’ yards, auctions, and
car fairs.
- Getting an independent mechanical check of the vehicle before
you agree to buy it.
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 the problems
before you buy the vehicle. If the seller agrees to fix the
problems, ask for this in writing.
The Land Transport NZ
publishes a detailed factsheet called Buying a Used Car (Factsheet
number 71), advising what to look for when checking the quality of a
used vehicle. This free factsheet is available from the LTNZ’s
website.
Checking there is no money owing
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. If you buy a
vehicle knowing that money is owed on it, then the finance company
could take the vehicle from you.
Checking the vehicle’s Warrant of Fitness
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 you buy a vehicle with a recently issued Warrant of Fitness
but the vehicle does not appear to be in a warrantable condition,
contact the LTNZ on 0800 699 000. The LTNZ can investigate
testing stations or garages that incorrectly issue warrants.
“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.
For more information, the LTNZ
publishes a factsheet called Change of Ownership of a Motor
Vehicle (Factsheet number 41). This free factsheet is available from
the LTNZ.
Terms and definitions used in this guide:
Breach- when a rule under a law has been broken - eg, it
is a breach of the Fair Trading Act for a trader to mislead you
about the vehicle’s age.
Car-yard trader - the term we use in this book to
describe registered motor vehicle traders who usually sell vehicles
from car-yards.
Compensation - money to put right a problem - eg, I am
asking for $1,200 compensation from the seller for being misled
about the condition of the vehicle’s engine.
Registered motor vehicle trader - all people who are in
the business of selling motor vehicles must be registered. This
includes vehicle traders, vehicle importers, vehicle wholesalers,
auctioneers, and car market operators.
Security interest - when a vehicle is purchased on
credit (using a loan or hire purchase to pay for it), the finance
company may register a security interest to show that they have a
right to the vehicle if the money owed is not re-paid. Security
interests are registered on the Personal Property Securities
Register.
After you buy
Changing registration
Within seven days of purchasing or obtaining a vehicle you must
notify a Land Transport NZ (LTNZ)
agent by completing and lodging the required form, presenting
identification and paying the fee. LTNZ agents are NZ Post, the
Automobile Association, Vehicle Testing New Zealand, Vehicle
Inspection New Zealand, and On Road New Zealand.
If you sell or dispose of the vehicle you must notify the LTNZ.
The LTNZ publishes a factsheet called Change of Ownership of a
Motor Vehicle (Factsheet number 41) that sets out the change of
ownership requirements that both a seller and a buyer must complete.
This factsheet is available on the LTNZ’s
website. Following the procedures outlined in this factsheet can
ensure you do not get caught with unpaid vehicle licence fees, Road
User Charges or other people’s fines.
Where can I find out more?
For further information on changing registration of the vehicle,
contact the Transport Registry Centre of the
LTNZ, Private Bag,
Palmerston North, or phone 0800 108 809.
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