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The Ultimate Guide to Buying a Used Car in New Zealand

Buy a Used Car with confidence - avoid the pitfalls of private sales & dealerships
Updated 25 April 2025
Summary:
  • Buying a car is really about what you need, not what you want, so be sure to get a car fit for purpose and work out your budget before you go for test drives and get carried away.
  • You can go down the private sale route, or buy from a dealer - you're only protected if you bought your used car from a dealer. A private seller has no responsibility whatsoever. 
  • There are a lot of pre-purchase checks to do if you decide to buy privately - protecting yourself with thorough checks is the best way to minimise the risk of getting burnt. 
  • A lot of vehicles in New Zealand are imported from Japan, and you can get assurances by asking for the importation/export sheet which indicates its condition - many buyers don't know about this.​
​Search with confidence, get the best price and avoid buying a lemon with our no-nonsense guide. 
MoneyHub is a big fan of used cars. They’re a smart investment compared to a brand-new showroom car, and at any time there are tens of thousands available for sale online. Whether you’re looking for a cheap-to-run city car or your dream wheels, you will be able to find it in the used car market.
 
However, while a used car may save you a lot when contrasted to a new car, there are a few traps to avoid. Our guide brings together useful tips and checklists to help you buy a used car that is reliable and value for money.
Our Guide Covers:
Don't overpay or offer too much. We know getting a reliable car valuation can be problematic. To speed up the process, our car valuation research offers a free tool with an instant valuation, powered by the most reliable data:
Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • We focus on highlighting the top car finance options to help you avoid costly high interest rates and unnecessary fees that add up too quickly. Our extensive research has consistently highlighted two trusted lenders who offer fair, competitive interest rates for most borrowers.
  • Simplify – A dedicated car loan specialist, Simplify has built a strong reputation for offering some of the most competitive rates and terms in the market. For 2024, we've named them our Favourite Car Loan Lender for their customer-focused approach and proven ability to get New Zealanders into cars with great finance deals. 
  • Harmoney – If you prefer a low-fee personal lender with an easy, fully online process, Harmoney is a great option for secured car loans. Their streamlined application can help you secure a loan quickly and efficiently.
  • Why Compare? Comparing car finance options can save you thousands. Even a 1% lower interest rate can significantly reduce your repayments. While dealership financing might seem convenient, it often comes with higher costs to boost their profits. By exploring different lenders and brokers (such as Simplify and Harmoney), you can secure a better deal, avoid unnecessary markups, and ensure you're not overpaying for your car.
  • Important: The interest rate you lock in now will impact your repayments for years to come, so choose wisely and compare before committing.
  • Advertising Disclosure: We may receive a commission if you proceed with a loan through our partners. However, this does not influence our recommendations, and all lenders are thoroughly vetted for fairness. Rates vary based on individual credit profiles.

8 Things to Consider When Buying a Used Car

​How much a used car will cost you will mostly depend on what car you buy, but there are many easy ways to lower the final bill. 

One-year-old cars are SO MUCH cheaper than new cars

The easiest way to prove this is with an example Let's take a 2017 Toyota Corolla GX, which lists for around $31,000 new. By the time it's one year old with 10,000-15,000 KMs on the odometer, it costs around $20,000-$22,000, a reduction of 35% in 12 months. This is called depreciation, and while it’s fairly steep in year one, it tails off every year as the car ages. Most Japanese and Korean manufacturers follow this rule. A 2015 and 2014 Toyota Corolla GX can be picked up for around  $18,000 and $14,000 respectively, meaning you'll often be able to pay 50% of the new model price for a four-year-old model.  
 
Top Tip
  • If you want a new(ish) car but don't want to top dollar, selecting a year-old car will slash you BIG on upfront cost.
  • This applies to luxury manufacturers (Mercedes, BMW and Porsche) as well, although over time these tend to keep more of their value compared to their Japanese counterparts. 

A reliable guide to New Zealand’s cheapest (and safest) cars to run is available for free

The government’s RightCar site has done extensive research, making available free of charge running costs for many models. You can look up 500+ makes and models and get their safety rating and expected fuel cost per year. 
​
Generally, these rules apply to running costs:
  • ​Smaller engines are cheaper to run as they use less fuel. Smaller engines put out less power, but if fuel savings is your goal, engine size needs to be considered. However, small engines are most efficient for town use and highly inefficient travelling long distances at high speeds, so you need to consider the purpose of the car, who will use it and how it will be used. 
  • Petrol cars are usually cheaper to buy than diesel equivalents, and you won't need to pay Road User Charges (currently $62 per 1,000 kilometres driven). Diesel engines tend to use less fuel than the same petrol model, and more economical than their petrol counterparts as a result. Diesel tends to cost 70% per litre on what you would pay for 91 unleaded.
  • Manual gear cars are much cheaper than automatics. The extra work to save yourself changing gears may be worth the extra cost upfront to make driving a little easier, especially if you drive on busy roads. For example, a manual 2008 Toyota Yaris 1.5L costs $7,500, whereas the automatic version is $9,000, a premium of $1,500. Generally, automatics cars are known to be more fuel-efficient than the manuals as the car knows the most suitable gear to drive in. This fuel saving could be recouped over time. 
  • Electric and Hybrid cars are much cheaper to run, but they cost a lot more to buy upfront. However as more of them enter the New Zealand market, sticker prices are expected to fall. There will also soon be a resale market - right now they're too new for us to compare to petrol and diesel cars.

Car Insurance Costs

What you pay for car insurance depends on your car and your driving history. If you want to spend as little as possible every year on insurance, a popular vehicle with cheap parts will be less expensive to insure than buying a luxury 4X4. Furthermore, a small European car will usually be more expensive to insure than a bigger Japanese car because of costs to repair and parts. Age and size also factor in - a new small car would be more costly to repair than an older wagon or SUV-type vehicle. 

Read our car insurance guide for more details. 

Know the BEST TIME to buy a used car

Having decided what car you’re going to buy, it’s time to get to get the best deal. There is a ‘right time’ to buy a car if you’re buying from a dealer. As car salespeople have sales targets to reach and bonuses to aim for, you’re best to aim for the end of the month. Better yet, at the end of the quarter (we recommend mid-March, June, September and December) dealers will want to maximise sales and move cars. To boost sales, dealers will be more obliging when it comes to negotiating the price and freebies. A quiet dealership is even better – if you can visit on a Monday or Tuesday. You can negotiate far better than if it’s a weekend after payday and the car yard is filled with half the city.

This advice only applies to dealers. Private sellers don’t care about the time of the month – they just want the best price. However, you will likely have better chances to negotiate in January when many potential buyers are away for Christmas holidays and Kiwis tend to be less flush with money.​

Follow our checklist and ask yourself, what car do I really need?

Buying a car is often more about what you need, not what you want. A petrol eating 4x4 may be great for the occasional weekend adventure, but if you’re commuting for hours every week, it’s going to kill you on petrol.
  1. What ultimately is the purpose of the car?
    Are you buying your car for family use, a local run-about or do you want a car comfortable for long distances for work purposes? Or something else?
  2. Where do I park?
    Do you have a garage or do you park on the road? If you park offsite at night, having a flash car may give you anxiety.
  3. Do I need the car for a specific purpose?
    For example, towing a trailer, transporting golf clubs, making a school run with kids and their sports equipment, etc.
  4. Do you drive around town, or around the country?
    A small car might not be suitable for cross-country work trips. Having cruise control may be helpful for long drives.
  5. Do I want petrol or diesel...or electric?
    The fuel you want to use can make a big difference in the model you might choose.

Planning to get rid of your current car? Should you sell it privately or take it to a dealer?

​If you plan to sell your current car, you have two options – sell it to a dealer or sell it privately. Selling it to a dealer is very easy – just drive it over and agree on a price. You can also trade it in, whereby the amount agreed is knocked off the price of the car you’re buying. Alternatively, you can sell privately – this involves advertising the car, responding to enquiries and agreeing on a price with the buyer.
 
Option 1 - Selling to a Dealer
Selling to a dealer, whether it be a local dealership or “We Buy Any Car” type business will save a lot of time, hassle and negotiation with potential buyers – but it’s unlikely to give you the best price. Remember, the dealership wants to sell your car to someone else as soon as possible for maximum profit so they’re not going to offer you what you can get from a private buyer. If your car is worth less than $1,000, it may be worth using it as a trade-in to avoid days and nights spent with potential buyers.

Option 2 - Selling it Privately
If you chose to sell privately, be prepared to invest the time knowing you’re more than likely to get a higher price for the car if you advertise and market it right. Recommended options for selling a car:
  • Autotrader  - $30
  • Trade Me - $59 to $129 until sold
  • Facebook
  • Taking out a local newspaper classified

Remember, listing a car online is the easy part. Making time for all of the interest parties, scheduling test drives, dealing with the sale and answering a whole lot of questions is the hard part. But, the AA confirms that in nearly every case, the amount of money you would receive when trading a car in will be significantly less than what you would receive from a private sale.

When is it best to trade in your old car?
  1. If you are time poor and won't be able to invest the time in selling your car privately and/or 
  2. If your car is in poor condition, low demand, and/or has high mileage - what you'll get for it isn't probably worth the time and effort to sell it privately. Sometimes it's just cheaper to dispose of it for a nominal price.  ​

Understand ALL of the costs of a new car

There are two types of costs involved in buying a car – upfront and ongoing. Upfront is simply the purchase price, ongoing is everything else – from WOFs to insurance to parking fees.

Before you add up the costs of your new car, you’ll need to pick the car you want. Start as you would with any major purchase, and look at reviews:
Upfront Costs
​Once you’ve picked a car, the next step is to pay for it. You can either pay for it upfront in cash or take a finance option. Visit our best car finance page for our guide to saving on car financing. 
Ongoing Costs
​There are many ongoing costs with a car, and all fall due at different times. You’ll need to have the money to pay them to keep your car on the road.
  1. Finance repayments – if you’ve decided to take out a loan or go with financing, you will need to budget for repayments. Visit our best car finance page for our guide to saving on car financing.
  2. Fuel - Rightcar.govt.nz outlines a good estimate of what fuel your car consumes and what that costs over a year.
  3. Vehicle License Fee – currently around $52 a year for standard cars. Visit the NZTA website for all the details.
  4. Car insurance – your insurance cost is calculated on your risk profile - read our car insurance guide for more details. 
  5. AA membership – if you want to join the AA for breakdown assistance and membership benefits such as loans and inspections, factor this in – it’s $79-$89 per year in the first year. Visit the AA Membership page for all the details.   
  6. Warrant of Fitness (WOF) – every car first registered anywhere in the world on or after 1 January 2000 will need to have an annual warrant of fitness – this costs around $40-$60 and any failures will need to be fixed. This includes things like brake pads, worn wheels, broken seatbelts etc.
  7. Servicing – an optional expense, but worth it if you want to keep your car in good health. You can save money with an AA membership which includes two “16 point tests” (cambelt, washers & wipers, coolant level and battery etc.) per year. Non-AA Members can get an AA Safety Check for $19.
  8. Parking – if you live in an apartment complex, check to see if you have a parking space. Unless you’ve never owned a car before, you'll know that parking costs range from free (supermarkets) to expensive (airports, inner-city peak carparks).
  9. Maintenance and repairs – new tyres, dint and ding repairs and car washing can blow out your budget, so allow for these extras.
  10. Diesel Cars surcharge – diesel is much cheaper than petrol at the pump, but there is a $62 per 1000km road user charge on diesel. This means that if you drive your car 5000km a year, you’ll be paying an additional $310 per year.
Christopher Walsh
MoneyHub Founder
​MoneyHub's Top Car Finance Options - Avoid high interest rates and fees with our trusted lenders.
  • We focus on highlighting the top car finance options to help you avoid costly high interest rates and unnecessary fees that add up too quickly. Our extensive research has consistently highlighted two trusted lenders who offer fair, competitive interest rates for most borrowers.
  • Simplify – A dedicated car loan specialist, Simplify has built a strong reputation for offering some of the most competitive rates and terms in the market. For 2024, we've named them our Favourite Car Loan Lender for their customer-focused approach and proven ability to get New Zealanders into cars with great finance deals. 
  • Harmoney – If you prefer a low-fee personal lender with an easy, fully online process, Harmoney is a great option for secured car loans. Their streamlined application can help you secure a loan quickly and efficiently.
  • Why Compare? Comparing car finance options can save you thousands. Even a 1% lower interest rate can significantly reduce your repayments. While dealership financing might seem convenient, it often comes with higher costs to boost their profits. By exploring different lenders and brokers (such as Simplify and Harmoney), you can secure a better deal, avoid unnecessary markups, and ensure you're not overpaying for your car.
  • Important: The interest rate you lock in now will impact your repayments for years to come, so choose wisely and compare before committing.
  • Advertising Disclosure: We may receive a commission if you proceed with a loan through our partners. However, this does not influence our recommendations, and all lenders are thoroughly vetted for fairness. Rates vary based on individual credit profiles.

Work out a budget FIRST before you look at used cars

To make buying a car easier, and to ensure you don't waste anyone's time, we recommend the following course of action:

1. ​Establish your budget – you need to know how much you can afford and where the money will come from. It’s best to arrange finance in principal (i.e. have it approved) BEFORE you go car hunting. You will waste your time and the seller’s time if you are unrealistic about finance and can’t get the money together before another buyer shows interest. Good deals come and go, so be smart and get the money together so you can snap up the car you want when you’re happy with it. A good deal will go quickly.
 
2. Stick to your budget - once your funds are in place, stick to the budget but don’t be afraid to target over-budget cars with the aim of negotiating down. For example, if your budget is $7,000 and you are keen on a 2008 Toyota Corolla (a Kiwi favourite, with plenty for sale), you can contact sellers advertising at $7,500 or even $8,000 with the ability to negotiate a better deal. Most sellers list their vehicle 10-15% above what the average for the model is because they think buyers will negotiate and/or they see their car is premium with lower mileage or better condition.

Once you have researched the model you want and have an understanding of the market value, you are ready to ready to go hunting. 

Buying a Used Car Frequently Asked Questions

How do I get the best finance deal?

Read our car finance guide which covers everything you need to know to get the best deal.

What if my new car has a fault?

The single biggest risk of buying a used car is it developing a fault after purchase. You can reduce the risk that this happens by paying to get the right tests and checks done (see our guide below).

Also, some models may be more problematic than others. Google your model + “faults” or “problems” to get some idea of what other owners have experienced. Faults and problems can cost BIG.  

How do I get a late model car and avoid paying too much?

If you want a car for half the price of showroom new, search for models from 2010-2012 (6-8 years old). Such models may have 50,000+ kms on the odometer, but you effectively save big while getting a recent model.

Key Point – when you buy a car, you are buying a depreciating asset. This means that unlike a house or an antique, the value of your car goes down every year. This is important to remember if you plan to sell your car a couple of years later – you won’t get what you paid for it.

Which cars are the safest to drive?

Rightcar lists vehicle driver protection safety ratings for a variety of categories such as “Large Car”, “Medium Car”, “Small Car” and “Light Car” among others. Vehicles identified as a 'Safer Pick' provide excellent protection to their own driver, cause less serious injury to other drivers and have a lower risk of being involved in a crash.

Manual or automatic – what should I pick?

This choice really comes down to how you like to drive. Do you like to drive or to ride? As most models have the option of manual or automatic, we’ve listed some pros and cons for each:

Manual
  • More engagement with driving and cheaper to buy.
  • But, stop-starting gets tiring and can be harder to resell.

Automatic
  • Smoother ride with no gear changing and often more fuel efficient.
  • But, a reduced driving “experience”.
  • More expensive to fix​.

If I buy from a dealer, do I need an extended warranty?

This is up to you - if your car needed a $1,000 repair next week, could you afford it? If it would be a struggle, paying upfront for an extended warranty gives you a form of insurance against the unpredictable. 

What do I do about insurance?

To protect the value of your investment, arrange car insurance BEFORE for the day you take possession. Best of all, if the sale falls through, you can cancel the insurance and get a refund. Check out the best deals in our car insurance guide. Having car insurance means that if someone drives into you on the way home, you’re covered!

Should I buy insurance from a dealer?

If your car is from a dealer, ask them if any insurances are included. You may get a week or two with the car, but check either way and arrange it if you don’t. Chances are you will find a better deal in the market - check our car insurance guide for tips. 

Buying a Used Car – Car Condition and Test Drive Essentials

​When it comes to a used car, appearances are 5% and everything else is 95%. We cover both the car condition and how it drives to make sure you don't end up with a lemon. 

First Checklist – Car Condition

  1. ​Check the car’s mileage –  allow for 15,000km per year, so if a five-year-old car has only done 40,000km, ask why and also ask for its last service report which will state the mileage. 
  2. Ask if the car has been involved in any previous accidents.
  3. Assess the overall condition – carefully look around the car for dents, scratches, and dings. Don’t glance, look thoroughly and take photos if you want to remind yourself of any issues.
  4. Check repairs done on the car. Look for shonky work done such as gaps in body panels and poor quality paint touch-ups. Check the oil. Lift out the stick to confirm it's at the right level.
  5. Look at the engine and watch out for water leaks - be sure to check for leaks by looking under the car as well. 
  6. Check all of the lights.
  7. Test the radio, SATNAV, aircon, windows and all other electrics.
  8. Do you feel the car is safe? You'll know fairly quickly if you're comfortable in the car - if in doubt, don't go any further. 
  9. ​Check tyre tread and inflation​.

Second Checklist – Test Driving

It’s expected that you will test drive a car before offering to buy it, so treat the time you have with it as a test and not a scenic drive.
 
Make sure you follow our 14 things to check.
  1. ​Are you comfortable? Can you adjust the seat to rise, slide backwards, forwards and recline? Can you adjust the position of the steering wheel? Do you have a full view of the mirrors? Can you put your feet on the pedals, and can you comfortably reach the gear stick and handbrake?
  2. Check the passenger seats. Make sure the front seat can adjust like the driver’s seat. Check the backseats and ensure the seatbelts adjust and click – belt yourself into each one. Is the passenger area comfortable for long distances?
  3. Pour a little of water over the windshield. Make sure it doesn’t leak.
  4. Is there space for big items you may need - golf clubs, sports equipment, etc.? is it easy to fit them in and get them out?
  5. Can you fit in a child car seat?
  6. Perform an emergency stop on an empty road to check the strength of the brakes.
  7. Find a hill or road with a gradient and perform a hill start to check that the handbrake releases and the clutch works properly.
  8. Perform a parallel park to see how easy it is to park – this is a major factor of hassle later on if you struggle to get control of parking it.
  9. Is the car balanced? Drive straight and take your hands off the wheel – does it veer to the left or right, or does it feel balanced?
  10. Are the doors, boot and bonnet easy to open? Check all passenger doors to make sure you can open them from inside and outside.
  11. Is the car smooth, i.e. does it accelerate smoothly without judders or rattling?
  12. How powerful is the engine? Can you get to a comfortable speed in a time that feels safe? Do you need to change gears more than usual?
  13. Does the engine noise sound normal? Is it rattling, sounding strained?
  14. Check the shock absorbers/suspension. How well does it absorb bumps, potholes and handle corners?

Buying from a Dealer - What you Need to Know

Buying a used car from a dealer gives you protection, but you will pay more compared to a private seller

​Dealers will check cars over before selling them, and often offer warranties for used cars. A private seller will offer no such warranty. If something goes wrong and you’ve bought it from a dealer, you'll have options such as a refund, repair or replacement to fixed the problem. A private seller won't be able to help you, and you'll have to deal with the problem on your own. 

My dealer is AA Appraised. Does this mean I don’t need to do an inspection on the car?

​Many car dealers will advertise themselves as “AA Appraised”. This means that the appraisal is a "dealer-only" inspection – it’s a small, basic cosmetic check to let the dealer know the condition of the vehicle before putting it for sale in the yard. This “AA Appraisal” is not enough, in most circumstances, to provide any confidence in the condition of the car. Furthermore, the check performed does not give any indication of the vehicle’s components. As such, we recommend getting a pre-purchase inspection. The only information validated will be the odometer. ​

How do I find a dealer that’s not dodgy?

Our guide to car dealerships has useful insights. ​You can check that the trader, individual or company is registered at the Motor Vehicles Trading Registrar. Under the Motor Vehicle Sales Act (MVSA) all car dealers must be registered. Beyond this, Google is a big help – online reviews and the Facebook page of the dealer will make you aware of any red flags (i.e. angry customers complaining). We also recommend asking friends and family for recommendations – buying a new car is an exciting but uncertain time and people will be willing to share their own experiences of dealers.

Pro Tip: A good option is to go to a large, well-known dealer that has been around for nearly 60 years. For example, Turners Cars has been around for 50+ years and has branches all over New Zealand. It's an established car dealership that sells around 100+ cars a day and offers a range of options. You can visit Turners to see their cares for sale.

What questions should I ask a dealer?

We Kiwis get anxious when we don’t know what to ask, but don’t want to miss anything either. A car dealer is (probably) not out to cheat you nor will it force you to buy a lemon. But, to be sure, it helps to know what to ask and to trust your instincts if you feel the vehicle and/or dealer isn’t for you. To give you the most confidence, we’ve created a list of questions to ask.  
 
Questions to ask:
  • Can I see the last WOF report?
  • Who was the previous owner?
  • What is the service history?
  • Are there any faults with the car, i.e. features or parts not working (radio, aircon etc.)
  • Has it been involved in any crashes or accidents?
  • What is included in the price?
  • How many KMs has it done, and can you prove it’s real?
  • What warranty is included, and what does it cover?

​Remember: If you feel something isn’t right, you’re being pushed into buying or the situation feels one-sided, you are totally free to walk away. You know yourself the best, so trust your instincts. There will be other cars and dealers to visit next. 

Make sure you bargain

Kiwis tend to shy away from haggling, but as we negotiate everything else important like housing and salaries, negotiating a used car shouldn’t be off limits. Bargaining applies to both dealerships and private sales. Our rules are as followed:
  1. Never pay the asking price – there is no need, and a seller wouldn’t expect it.
  2. Go over the car like a scene from CSI – find dents, marks and anything else that is visible and make a note of it. Put those in a list and use it to ask for a discount.
  3. Prepare a list of similar or same model cars being advertised - arm yourself with the cheapest web prices and make dealers compete for your custom - What Car? lists a handy 'target' price for all brand new cars. Print this out and stick to it during negotiations.
  4. Bring a verified AA report – you can pay $20 for a valuation report, which lists out the value for a vehicle buyer, or seller. The report includes a trade-in price (value based on the car's condition), private sale price (if selling privately, the value based on the car's condition), a safety rating based crash test results, information about the car's petrol consumption and emissions information, among other things. 
  5. Push for freebies - if you’re buying from a dealership, get them to offer a freebie, be it floor mats or two free services.
  6. Push for further discounts - if the car is already discounted, you have more ground for further discounts. Start with 25% lower and move from there.
  7. Talk less, not more - Kiwis panic and talk too much in the negotiating stage to avoid awkward silences. When you make an offer, wait for them to make a counter, and then stay silent until they lower it. Don’t talk, just state numbers.
  8. Don’t be afraid to walk away – if they follow or phone you later, you’re likely to get a lower price.
  9. Be friendly – don’t be rude. Keep a sense of humour and have some style and you’ll get a discount.
  10. Don’t sign on the day – you’ll want to think about it, and you may well get a further discount if a dealership wants its sold. 

Buying a Car Privately – What to Do

​Buying a car privately is a lot riskier than buying from a dealer. Firstly, you buy the car as it is, not with any expectation that it will do another 100,000km or even get you home. The Consumer Guarantees Act and Fair Trading Act don’t apply to a private purchase. It really is a situation of “buyer beware”. If the seller misrepresented the car you could take them to the Disputes Tribunal, but things can get ugly and it’s a slog and a lot of work. 

To have the best experience of buying a car privately, we’ve put together a checklist to reduce the risk of you buying a bomb. First of all, we encourage every buyer to stay local in their search. By this we mean don’t commit to viewing a car in Tauranga or Hamilton if you live in Auckland. A lot can change, sellers change their mind or message “sorry, sold” as you pull up at their house. Searching locally is easier for everyone involved. 

What are my rights for a private sale?

​Private sales differ from dealer sales in that you have very little protection under New Zealand law - “let the buyer beware” is the best it gets and forces buyers to thoroughly check the car out before making an offer. By buying privately, you can forget about a warranty, dealer finance or freebies. But you may find it’s the cheapest way to get new wheels. 

Private Sale Checklist

Pre Inspection Essentials

  1. ​Get the description in writing - the seller MUST present an accurate description of the vehicle. Take screenshots of the advert, and if you get more details over the phone, ask them to confirm those on an email. It’s all about making sure there is no bait and switch or catfishing going on.
  2. Research the seller – if it’s a Trade Me listing, look who the seller actually is – how many negative reviews do they have, and how have they responded? Are they a new seller? That could be a red flag. Verified sellers are preferred, as are ones with a positive Trade Me seller history.
  3. Don’t meet up at a neutral location – make sure you go to the seller’s home to view the car. Meeting at a carpark etc. screams dodgy, and suggests they don’t want buyers to know where they live in case something goes wrong.
  4. Call in a friend – having a second opinion is essential. Bring a family member, friend or workmate who knows something about cars – they don’t need to be an expert, just someone with some common sense.
  5. Check the Car’s History - this gives peace of mind and exposes the vehicles’ dirty secrets (should it have any). For $, it’s worth the money and could save you big time later on should there be something dodgy the seller didn’t tell you.

MoneyHub reader Steve writes: 
"I read about a late model VW going for a good price, but there weren’t many photos. I phoned up the seller, and he was vague but made an appointment to look at it anyway. It really was a bomb, and I only got through a few of my checklist points before calling it a day. The seller was a Catfish, listing a dodgy car with no hope of selling to anyone informed”. 

Know what CAN go wrong, so you can ensure it doesn't

​​There are several risks with buying a car privately. We outline them:
  1. The car has finance owing on it – this means that the seller doesn’t have the authority to sell it and it can be repossessed at any moment.
  2. The odometer is dodgy – this can be a problem throughout New Zealand, and it means you are buying a car that has done more kilometres than it says it has.
  3. The car is stolen – if you buy a stolen car, it can be taken off you at any moment and you could be charged with receiving stolen property. To eliminate this risk, always verify the ownership details and history before purchasing.
  4. It’s a total lemon – the car has major problems and is unusable.
  5. The car is a ripoff – it’s not always so clear what a car should cost. You do risk paying too much. 

Get the car's complete history for a small fee

A car history check will tell you if the vehicle has money owing, an inconsistent odometer, has been reported stolen and offers a number of other useful information points. It will also tell you the current legal owner so you can be certain you are dealing with the correct person. Car history checks can be bought instantly online.
​
Recommended: carjam.co.nz is arguably the leader in car information, selling their detailed CarJam report for around $15 – you can see a sample report here. This comprehensive report will let you know everything about the car like accidents and ownership changes, WOF issues, money owed and a market valuation.  Keep in mind the report isn’t a vehicle inspection – we outline these separate reports further below. Our CarJam Review and CarJam vs MotorWeb Reports guides have more detail.

Stolen car? If you only want to know if it’s stolen, enter the registration on the NZ Police website to check it's status. 

Money owing? TEXTB4UBUY is a government service that checks if there is money owing on the car. It costs $2.30 per registration number.

Get familiar with MR13 forms (used to buy a motor vehicle) - you can complete the MR13 forms at your local PostShop or AA centre.
 
Important: Once you confirm everything is above board and who you are dealing with actually owns the car, you may want to organise a vehicle inspection. ​​

Test Drive Essentials

We've listed a few suggested essentials to help you see the car as it is, not how the seller wants it to appear. 
  1. ​​Ask if the vehicle can be cold on arrival - you will be able to feel how easy the car is to start, as well as hear any rattles or problems with the ignition process. You may also notice smoke until the engine warms up (although quite rare), so having the car cold is the best representation of its condition. It gets cold in winter (even in Auckland), so a car that starts easily is a lot less hassle.
  2. Never view a car in the dark, and preferably not in the rain – you want to be able to see everything and feel everything without the distraction of darkness and weather conditions.  
  3. Ask for the vehicle to be parked on concrete – you’ll be able to see if there are any oil leaks. 
  4. Ask for cambelt history – a car doing over 100,000 KMs will need a new cambelt, so ask for proof it has been done.
  5. Check the battery life – make a note so you know how long it has left.
  6. Google things to watch out for with that particular vehicle and engine too. 
    Check to see if it's subject to the Takata airbag recall, and if it is, check to see if it has been recalled.
  7. Don’t point out every flaw, scratch, dint or other imperfection - you’ll insult the seller who will be much less receptive to negotiating on price later on. Just make a note of it mentally and use it how you wish with the negotiating. 
  8. Test Drive by riding Shotgun – knowing how the car drives is easier learned as a passenger. Ask the owner to drive you out to a specific location and plant your feet on the floor. Feel vibrations, listen to how the car sounds and takes corners. Any misalignment or out of balance wheel will be obvious when you’re riding in the passenger seat. You’ll also be able to identify any suspension problems.
  9. Assess the seller’s driving – the last thing you want is to buy a car from a hoon. Aggressive drivers brake and accelerate without care, wearing out the car. Ask yourself:
 
Does the owner:
  1. Accelerate too aggressively – this causes the engine to get prematurely tired.
  2. Brake at the last moment - the brakes could be worn out.
  3. Take corners sharply – tyre tread can unevenly wear out meaning a WOF will be harder to get.
  4. Ride the clutch – this wears out the clutch one coasting at a time.
  5. Drives over potholes – this wears out the shock absorbers, affects the alignment and damages the suspension. Or are they a calm driver who shifts gears smoothly, avoid potholes and keeps inside their lane and drives defensively? The condition of a car is directly related to how it’s driven, so you may want to say no to the seller if you feel as if you’re joyriding with a boy racer. The rule is to make sure your seller is a good driver.
  6. Drive the vehicle – invest the time to test the car properly. Specifically:
  • Accelerate up to 100km/h and then bring it up to 120km/h (momentarily) to make sure it doesn’t shake, rattle or wobble.
  • When at cruise speed, take corners to detect any misalignment or corrections you need to make
  • Brake consistently for half the way to check the engine brakes are working properly. If it’s an automatic, turn off OverDrive to ensure the vehicle naturally engine brakes. With a manual, engine brake by taking your foot off the accelerator.
  • If it’s a front wheel drive, find a location to perform a sharp right and left turn to test the steering wheel and handling; you'll soon see if there are any locking up problems.
  • Find a quiet road with a clean, new surface. Listen to the car and to the wheels; any rattling will be easily heard.
  • Test the clutch: Leave the handbrake on and put it into first gear, slowly releasing the clutch. It should stall quickly – how does the clutch feel? It should feel natural and not slip. 

Minor checks:
  • Check tyre wear for even wear across the tread
  • Check pedal rubbers – if you see extensive wear, this will suggest the owner is a brake rider and there may be worn out brake pads.  ​

If you like the car after the test drive, consider getting a Pre-Purchase Vehicle Inspection

​It’s unlikely you’re a mechanic, so for complete peace of mind, it may be an idea to get the vehicle checked out by the AA or a local mechanic. It’s more expensive than a WOF, but it will protect you from being ripped off. ​

AA Pre-Purchase Vehicle Inspections
​The AA offer pre-purchase vehicle inspections that offer a comprehensive 100+ point vehicle check by an experienced mechanic, an overview of any recommended repairs, an indication of any potential WoF issues and clarity around the condition of the car before you buy it.  The cost is around $200 (depending on whether you're an AA member or not). You will be hard-pressed to find an assessment that is as thorough, and the AA report gives reassurance that you can buy your car with confidence. Alternatively, you can also contact a local mechanic who can perform an inspection.
​
​Important: When it comes to paying for the car, you're not protected in any way by your method of payment. For example, if you’ve paid for the car by PayPal or a money transfer, neither PayPal nor the bank offers any protection – i.e. you can’t claim your money back if something goes wrong.

What protection does Trade Me offer?

Quick answer: NONE. Car purchases are NOT protected on Trade Me unless the seller is a dealer.
  • ​Trade Me is a popular place to find a car. But don’t think that because it’s listed online you have more rights. Private selling is the same whether you see a car on online or advertised at your corner dairy.
  • Despite Trade Me claiming you can take your trader to the Motor Vehicle Disputes Tribunal, unless the seller is a dealer, this tribunal is only for people who have bought a vehicle from a registered trader.

'Paperwork & spares' checklist - the seven things to check

When you buy a used car you’ll be given a bunch of documents, so check you’ve got the right ones before paying up. These include:

Car Repair and Maintenance
  • Spare tyre (in good condition), along with a tyre jack and tyre iron
  • Tyre inflator and sealer
  • Jumper cables
  • Car manual, which should be in the glove compartment already

If this is your first car, you may wish to purchase some safety supplies, with popular essentials including:
  • First aid kit
  • Flashlight​

Other Key Information You Need to Know

Japanese Import? Find out the condition of the car when it left Japan

If you’re buying from a dealership that sells used imported Japanese vehicles, ask for the importation/export sheet. Every car has one and it’s in the same envelope as the spare keys. Inspect it, and you’ll see it’s in Japanese and printed on 1980s paper (with perforated edges). There will be a number rating on the top right. You will want a car that is at least 3.5. The grades are as followed:
  • Grade 5: As new condition
  • Grade 4.5: Very lightly used condition
  • Grade 4: Used condition with only the lightest of blemishes
  • Grade 3.5: Good condition with more noticeable blemishes
  • Grade 3: Average condition marks and possible light damage
  • Grade 2: Poor condition may have accident damage or corrosion​

japanese used car
This Japanese import is marked as a 4 (used condition/light blemishes) as indicated by the number in the red box marked.

Consumer Information Notice

A dealer is required to attach to every motor vehicle displayed for sale a “consumer information notice” (CIN). There must be a link to the CIN if a trader is selling used cars on the internet. A private seller at a car fair or using a display for sale operation must also display a CIN.

The Commerce Commission outlines all the information that must be disclosed in the CIN, which we outline below:
  • Price: the CIN must state the total cash price for the motor vehicle including GST and any additional registration and licensing costs required in order to allow the vehicle to be used on the road.
  • Security interest: the CIN must show whether there is a security interest registered against the vehicle on the Personal Properties Security Register (PPSR).
  • Make and model: the vehicle's make and model must be as recorded on the Motor Vehicle Register.
  • Vehicle year: the year must be as recorded on the Motor Vehicle Register. For vehicles registered before 1 January 2007, this means the calendar year when the vehicle was manufactured or the model year stated by the manufacturer or the year when the vehicle was first registered anywhere in the world. For vehicles registered after 1 January 2007 vehicle year means the year it was first registered anywhere in the world.
  • Engine capacity: the CIN must state the engine capacity as it is recorded on the Motor Vehicle Register.
  • Actual distance vehicle has travelled: the CIN must state the reading on the odometer.
  • Radio receiver capability: the CIN must state whether the vehicle has a radio capable of receiving stations located between 88 and 108 Mhz (FM) without the use of a band expander.
  • Vehicle identification (VIN) or chassis numbers
  • Warrant or certificate of fitness
  • State the current warrant of fitness expiry date.
  • Vehicle licence expiry date
  • Registration plate number
  • Year first registered
  • Re-registered vehicle
  • Operating fuel type
  • Road user charges (if applicable)

If you buy the car, you must be given a copy of the CIN.
If you notice that a vehicle is displayed without a CIN, or the information on the CIN is misleading, you can complain to the Commerce Commission. The commission can prosecute for breaches of the Fair Trading Act. If you buy the vehicle and then discover you were misled you may be able to take action yourself under the Fair Trading Act.
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