Legally, a car does not need to be insured to drive in New Zealand, meaning car insurance is optional. But the risk to other people’s property makes it wise to insure yourself, as anything to do with cars and accidents is usually expensive and involves a lot of hassle without insurance. There are three types of car insurance, as outlined below:

1. Third-Party – this covers you for damage you cause to another vehicle or property, as well as any passengers. But if you have an accident, your car is not insured, and you will need to pay for repairs yourself. If your car is stolen, catches fire or becomes a write-off, you’ll need to buy a new car. Third-party is best for cheap cars worth very little.
2. Third-Party, Fire and Theft – this is standard third-party insurance, additionally covering fire and theft.
3. Comprehensive – this is the most extensive car insurance, and it pretty much covers everything from accidental loss or damage to your car, key and lock replacement, fire damage, theft, damage to someone else's vehicle or property, repairs and personal liability protection (meaning if you injure someone, your insurance will take care of them). 

 
How do I get the cheapest insurance policy for my car?

1. Our Car Insurance comparison guide explains the options for a range of cars and locations and provides a good start to understand what's available. 
2. To get your own quotes, you just need to supply your date of birth, vehicle registration (or car details), your address/location as well as a couple of other minor details.
3. Get quotes online with preferred insurance, and if the policy suits your needs, check if there are discounts available by calling directly. Most importantly, go through your policy and make sure you know what you are covered for, and what you are not covered for. 

​

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. Our guide to buying a used car covers all the important things you need to know to avoid trouble later on. Important need-to-knows are also listed, including:

• 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.​

The standard fee of a WOF ranges from around $45-$55 for cars. However, the biggest budget blowout comes from fixing the fails. The best WOF provider is often one without a garage, so there is no incentive to fail you and quote repairs. Do not be sucked in by “$20 WOF” offers – there's no money in that for the provider, so it's questionable why it is so cheap. Simple Google the name of your location and WOF, i.e. 'Albany WOF', and look for Google reviews that speak positively. 
 
MoneyHub user Tim writes:
I usually go to my local VTNZ and get a warrant first time on my Toyota. I strayed and went to a garage for no reason, and got an estimate of $800 for repairs. I then drove it over to the VTNZ and it passed. Be careful.

It sounds silly, but despite all the reminders from the NZTA, this can easily be overlooked. You can be instantly fined $400 if your driver's licence has expired. It costs around $45 to renew for 10 years, a fraction of the fine. Check your licence today, and schedule yourself a calendar reminder to renew. 
​

Petrol stations all over New Zealand sell a variety of premium unleaded and diesel fuels which cost 10 to 40 cents more per litre. For most cars, the premium fuels make no difference at all. Unless you have been advised by your vehicle manufacturer to use a specific premium fuel, stick with the regular ones and save.

A car is most efficient when it is cruising at a constant speed before naturally slowing down rather than breaking. With these simple tips, you can crush your fuel cost without going any slower on the road. Here are our hacks:

• Accelerate gradually, avoiding going over 3000RPM. The harder you press on the accelerator, the more fuel you burn and the more you spend - gradual is best.
• Drive in the highest gear possible for your speed level, i.e. get into fifth gear on the open road, fourth gear in the city. Lower gears make your car work harder, and it needs your fuel tank to do this.
• Anticipate your movement and slow down naturally, avoiding sudden braking and therefore using the momentum of your car. You brake burns money that you paid to speed up your car.
• Avoid air conditioning and use the windows where possible.

​

New Zealand doesn’t currently legislate against motorists being held to ransom if they park on private property. And when you think of antique dealers, you don’t think of clamping. But thanks to the previous predatory behaviour of one Auckland antiques dealer, clamping is higher up on the radar of motorists, at least in Auckland anyway. Still, there are three tips to avoid being caught out by this wild west area of the law:

1. Don’t park in a retailer’s car park after hours if it says “clamping zone”, “tow-away zone” or anything similar – it’s not worth the risk
2. Don’t overstay a warning – if it says “90-minute tow-away area” or “misuse of parking is clampable” then follow that. If you’re unsure, take photos of your car parked. This may be officious, but it will time stamp your car if there is any dispute later.

It’s easy to say “I’ll just be 2 minutes” but tow trucks never rest, and your car is money for this divisive industry. If you cannot find a park and the only spaces free are in tow-away parking or zones, wise drivers won't take the risk. Towing is unregulated and aggressive, and fees start at around $150 to get your car back. Plus the experience is stressful and involves a lot of hassle. If you can't find a park, consider a paid parking lot - for $1 or $2 you can be sure that your car is safe from clamping or being towed.
 
MoneyHub user Sasha writes:
We were going out and parked in a tow away zone, the driver adamant it would be fine. Later that night we returned to find no car. A lot of time was wasted getting it back, and we felt responsible to share the financial burden even if it wasn’t our fault or our car. Never again!
​

Just because the council issued you a parking fine doesn't mean they don't make mistakes. While the infringements may be $15 to $40, if you don't believe you were at fault or the fine was a mistake, contact the issuer and send an email or letter outlining your points.  
​
MoneyHub user Chris writes:
I parked on a street being re-marked near Otago university. Upon returning, I had a ticket for parking against the direction of traffic, but the direction wasn’t obvious to me as many cars were front and rear facing. I wrote in and complained, and the Dunedin City Council cancelled the ticket and supplied another reason as to why I didn’t need to pay – score! It pays to appeal.
​

Lights, suspension and handbrake issues frequently fail cars during their WOF. Our guide below explains quickly fixes you can anticipate before getting your WOF.

1. Lights – are they 100% working? Check every light, front, rear, headlights, dipped, hazard and indicators. If a bulb is out, you can easily buy and replace them from Repco etc for less than $10.
2. Suspension – while you can’t do a full test without equipment, we recommend to apply weight to each corner of your vehicle and release it – it should bounce back, but if not, you may have a suspension problem.
3. Handbrake – this must have tension and not be loose or lack effectiveness. If it doesn’t feel responsive, then you will need a mechanic. ​

If your car needs new tyres, shop around to save. Quotes vary significantly, and you can save $100+ by calling a few garages and tyre companies. If you're buying two or more, you have more bargaining power. The best deal will include your tyres being fitted, tracked and balanced.
​

Your car is more likely to break down in winter, and New Zealand winters can be vicious. We have five tips to ensure safe driving this winter:

1. Purchase anti-freeze and a screen-scraper - anti-freeze prevents your car’s coolant from freezing so your engine won’t stop, and a screen-scraper clears your windscreen.
2. Test your lights regularly – making sure your lights work in fog, heavy rain and general bad New Zealand weather is important.
3. Check your tyres – having at least 3mm of tread (as suggested by the AA) is recommended.
4. Stock your car with must-haves – a breakdown is easier and safer with a torch (with spare batteries), a first aid kit, a spare mobile phone charger and jumper leads. If you drive remotely, pack a warm blanket in the car.
5. Check your battery – the most common reason for a break down in winter is a dead battery. Keep it charged, and replace it if necessary.

​

Petrol prices are a painful reality for any New Zealand motorist, where filling up can cost up to $100. We’ve listed a few tips to cut the cost of your visit to the petrol pump, with an estimated % efficiency on petrol use.
 
Tip 1: Keep tyres properly inflated

• Efficiency improvement: Up to 4%
• Low tyre pressure means your engine needs to work harder to power your car, using more fuel. Make sure your tyre pressure is optimal at the petrol station – it’s free and worth doing every 1-3 months.

Tip 2: Drive at 30-50km/hour and avoid heavy breaking

• Efficiency improvement: Up to 3%

 
Tip 3: Remove roof racks

• Efficiency improvement: Up to 10%.
• Roof racks are not aerodynamic – they cause a lot of drag and churn petrol in the process. They may look sporty, but they blow out your fuel bill. If you don’t use it, remove it.

Tip 4: Switch off air conditioning at low speeds

• Efficiency improvement: Up to 10%.
• Running air conditioning burns petrol, so if you’re driving around town turn it off unless you really need it. At 100km/hour it is more efficient as opening windows causes drag and slows your car down.

Tip 5: Don't fill your car up 100%

• Efficiency improvement: Up to 1%.
• Your petrol tank is likely to be around 50 litres, and fuel is heavy. A full tank adds a lot of extra weight. If you’re using your car as a run-around, fulling up half full will make it more efficient to run.

Tip 6: Declutter your car efficiency improvement:

• Up to 2%.
• The less your car weighs, the less fuel it needs to run. Get rid of everything you don’t need in the boot – sports equipment, junk, tools etc, and clean out the glove box and under the seats. It makes a big difference.

New Zealand has tens of thousands of rental cars available at any one time, and prices are very competitive. To get the best deal, run your dates through an international price comparison website like Kayak. You change the currency to NZD, and the deals will often be better than local New Zealand websites. You may also be able to save more by shortlisting a couple of providers and contacting them directly, asking them to beat their online rate. Many do, as selling direct avoids paying a commission. 

As MoneyHub user David writes:
I used Kayak to find a company in Queenstown called 'Hitch' which was offering a Mazda Demio for $30 a day. I looked on their website and saw they had a promo code which took the price down to $22. Over two weeks I saved over $100 on a very good deal anyway. 

Supermarkets advertise a lot of petrol promotions, and many have the convenience of having pumps in or near their car park. The savings are not huge, but they can add up. 
Current promotions include:

• Supermarket dockets (New World, Pak'N'Save and Countdown): This ranges between 4c and 6c discount per litre, which you can use at a number of different petrol companies. 
• AA Smartfuel - available at BP or Caltex, with a 6c discount per litre if you spend more than $40, and in-store discounts such as Mitre 10 as well. 
• FlyBuys - available at Z, with a 6c discount per litre
• Farmlands - available at Z, Caltex or Challenge, with up to 12c discount per litre (paid as a rebate on your Farmlands account)

If you're commuting into the CBD of your city every morning and need to use your car, daily 'early bird' deals can still add up. If you’re a regular commuter to a city centre and don’t get free parking with your work, renting a car park space could save you hundreds of dollars a year. To find out how much it will cost for the one closest to you, contact the owner directly. It may seem like a lot of money to spend, but daily parking is a lot more expensive by comparison.

For example:

• Albert Street Auckland daily early bird parking: $19/day
• Monthly pass: $300
• Saving (if used 45 weeks of the year, Monday to Friday): ~$850

​

Car finance can be very good value, or very expensive. Our guide to car finance includes a number of tips when you buy a car. It also includes the major lenders available throughout New Zealand, their fees and their interest rates. 

The best way to save money on car finance is to follow these tips:

1. Get car financing agreed in principle BEFORE you starting looking for a car – you’ll save the most on fees and interest costs and know exactly what your budget is. You can also negotiate the price you pay like a cash buyer - it makes everything easier.  
2. Without question, the WORST place to get financing is at a car dealership just after you’ve decided on a car. You have no bargaining power, nor will you be familiar with other options in the market.
3. The cheapest interest rate deals will be on secured loans – this means the lender has a right to sell your car if you can’t make the repayments (exactly like a bank can sell a house if the mortgage isn’t repaid). 
4. To pay the least amount in car financing, you’ll need the lowest interest rate, lowest application fees and the shortest term with the most frequent repayments (i.e. weekly vs monthly). i.e. If your loan is $10,000 and your interest rate is 15%, you’ll pay $4,000+ in interest if you pay it back over 5 years, but only $1,600 if you pay it back in 2 years.
5. Most car loans are up to 5 years in length. Early repayment will slash the interest costs, but check the lender’s fees and charges to know how much that will cost.
6. Avoid adding a car loan to your mortgage if you can help it – you’ll pay interest on the amount for a lot longer which costs you more in the long run. For example, a $10,000 loan at 4.50% over 25 years is much more costly than a $10,000 at 12.95% over three years.
7. Missing repayments gets costly – lenders charge $25+ for each missed payment, so prioritise your repayments.  
8. See our cheapest car finance and loan tables to pick from the best deals currently available - and visit our personal loans guide to compare

​

Public transport networks are improving all around New Zealand as the population grows and councils look to slow the numbers of cars on the road. In Auckland, public transport has never been better. 

​Local Travel

• Monthly bus passes beat per-journey: Auckland overs passes from $150/month, with other cities offering even cheaper transport.
• If you’re over 65, you qualify for the Super Gold Card which you can use to get free off-peak travel on local transport around New Zealand.

City to City Travel

• Overseas visitors travel around New Zealand cheaply so there’s no reason you can’t either. If you’re going city to city, there are a few options to avoid car use, but you’ll need to book early to point to save the most.
• Companies like InterCity offer long distance journeys for as low as $20 which can be much cheaper than driving, especially if you're staying with friends or family at your destination and won't need a car.
• Alternatively, you can fly for as low as $39 between Auckland and Wellington – read our Air New Zealand tips and learn how to save 75%+ on domestic airfares.