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The Definitive Women's Guide to Buying a Car: Everything You Need to Know to Stay in Control

Our guide, requested by our readers, empowers your car-buying experience with proven tips for communication, assertive negotiation, and understanding sales tactics. We outline key steps for buying a car and navigating dealerships with confidence.
Updated 3 August 2024
Introduction
  • We hear many complaints from women who feel intimidated when buying a car. While both men and women generally lack experience buying a car, given that you only do it every 5-10 years, it's no secret that many women feel anxious or uncertain when stepping into a car dealership. The real concern is the fear of being underestimated, not taken seriously, or unfairly treated in pricing and financing.
  • ​Many car dealerships are male-owned, run and staffed. We have had a lot of complaints from women about their experiences when buying a car. This has inspired us to take action and prepare a guide that recognises these challenges and aims to change the narrative. Our purpose is clear - we want to empower women with the knowledge and tools to make confident and informed decisions when buying a car.
  • The decision to publish this guide has prompted complaints about sexism, but we stand by the guide's intent and look forward to making edits in the coming weeks to expand in key areas. That being said, this guide is not just for women - it's for everyone. The tips and advice are useful for anyone looking to buy a car, regardless of gender.
  • Whether negotiating a fair price, understanding financing options, or simply walking into a dealership confidently, knowing how to combat a sales push, this guide is your ally.
  • We believe that informed decision-making is key to a positive car-buying experience. This guide walks you through each process step, from understanding the basics of car financing to mastering negotiation tactics. It's not just about getting a fair deal - it's about feeling empowered and in control every step of the way.

Know This First: You probably buy one car every 5-10 years, whereas car salespeople usually sell one daily. Given the emotional connection and the money involved, there's a lot of pressure when you buy a car, and men often put it on. 

​Our guide covers:
Women Buying Cars – A Background:
  • Women purchase 44.1% of the cars in New Zealand and heavily influence 85% of all vehicle purchasing decisions in their homes. In addition, women are far more likely to provide referrals for positive shopping experiences. With these factors combined, women should be treated with the utmost respect at car dealerships, but the reality is quite the contrary for many women. Our guide is published to help level the playing field.
  • Research confirms that women are often ignored when car shopping with a male partner, even if the car is for her. When car shopping solo, we believe women can face gender discrimination, more pressure to upsell, aggressive negotiation, dismissive negotiation and higher prices for purchases​.​
  • Important: This guide is not about dictating how you should act or conduct yourself during car-buying. Instead, it aims to provide you with the essential information and strategies to navigate the process confidently and effectively. Please take inspiration from these tips and apply them in a way that feels right for you. The goal is to ensure you are well-prepared, informed, empowered to make the best decisions and stay in control of every interaction. Remember, it's your money and your decision. ​

Car Buying Experiences from MoneyHub-Reading Women

We asked our most trusted female readers to share their experiences, many of which appear in specific sections throughout this guide. Some stand-alone experiences are shared below:

1) A MoneyHub reader from Auckland:
"I'm a female in my 40s, and in 2022, I went car shopping in Auckland and test-drove an SUV I loved. However, when I told the sales guy I was interested, he replied, 'Oh no, that's a man's car. The woman's version is this (pointing to something I didn't want)'. My son was also buying his first car and was browsing EVs; the same sales guy commented, 'You'll have to get yourself a turban and an Uber Eats job if you drive one of those.' We are Pakeha, and we were appalled. So, a huge dose of sexism and racism from one morning when buying a car. I did tell a manager and never got a reply".

2) A MoneyHub reader from Northland:
"I have been fortunate to have had a father who was always tinkering with cars, and now I have a brother who is a mechanic. I drag him along to view the vehicles I like, always promising to take him to lunch. That always works. I advise everyone to do their homework, just like with any pre-purchase. Have a chat with the mechanics you currently use to service your car. Find out what cars they don't recommend and which ones they do. When driving around, consider what cars might suit you and identify your must-haves and don't-needs.

My last vehicle purchase had to fit my paintings, which measure 1100mm x 1100mm, and be comfortable and nice to drive. I wanted something that could function as a car and a van since I enjoy road trips around the North and South Islands. I decided on a Nissan Murano, which ticked all my boxes, and I have had it for nine years.

If you aren't familiar with car mechanics and don't have a knowledgeable friend or family member, ask your mechanic if they could help you. It's always better to take a support person, even if they don't have great knowledge, so you can discuss your thoughts and get their take on the vehicle. This also helps keep the salesperson from interrupting your thought process.

Most cars these days are pretty reliable, and you shouldn't have the problems we did in the past. However, I would be cautious about buying an electric vehicle. I believe the batteries are more polluting than petrol-driven vehicles, and the environmental and disposal costs are significant."
Considering buying a used car? 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:

Proven Tips for Starting the Process of Buying a Car

Know This First: Buying a car comes with many emotions, most of which you'll feel beyond the excitement of paying the money and getting the keys. The top words buyers of all genders use to describe buying a car are a mix of emotions, including:
  • Joy: The joy of purchasing a new car
  • Dread: The dread of high-pressure sales tactics
  • Confidence: Confidence that you've done your research
  • Frustration: Frustration when you aren't heard

Unfortunately, some salespeople have earned a bad reputation. It's part of the age-old car lot culture that uses high-pressure sales tactics. The tips below are published to help you stay calm and assertive regardless of sales tactics.
  1. Expect stress: Buying a new car is often an emotional rollercoaster. Manage your expectations by acknowledging that stress is an inevitable part of the process. You will feel it, and anticipating this makes it easier to move forward.
  2. Understand their perspective: Before you walk through the dealership door, remind yourself that the car salesperson you engage with works on commission. New salespeople only sell a few cars a week, and the best salespeople sell just one car per day. They want to make a sale.
  3. Go in the morning: As the day goes on without a sale, salespeople are more likely to put the pressure on. We suggest going first thing in the morning when they still have the full day ahead.
  4. Bring a friend: You're a modern woman who can do hard things without help. However, there's nothing wrong with bringing someone for moral support. This doesn't have to be a man or someone knowledgeable about cars or financing. Select someone who will remind you of your outlined criteria and right to be heard and respected.
  5. Don't forget you have all the power: If your salesperson employs sales tactics that create a sense of urgency, take a breath and remind yourself that you have all the power.
  6. Step away: If you begin to feel overwhelmed, tell them you need to make a phone call and call a friend (or at least pretend to). You can even request that the pricing line items and terms you discuss be typed out. Then, you can return when you've had time to evaluate their offer.
  7. Recite a silent mantra: When frustration begins to rise, take a slow, deep breath and recite a silent mantra - a female MoneyHub user experienced with buying cars suggested something like, "This is my decision, not theirs; My car, not theirs; My money, not theirs"
  8. Don't be afraid to walk away: This is critical - if the salesperson isn't listening, isn't answering your questions, or is pushing for unnecessary upsells - leave. Other dealers in your area will treat you with the respect you deserve when making such an important financial decision. Don't be afraid to walk out; a simple "thanks for your time, I've got the information I need". Remember, the ratio of people buying a car to everyone coming into a car dealership is low - just because you've talked to someone doesn't mean you're committed.

A MoneyHub user from Dunedin shares her story:
"I needed to buy a new car in 2023. It seemed like a daunting process. I had so many questions running through my brain: where do I start, how do I haggle with car dealers and not be ripped off, what make do I want, what am I supposed to do when I lift the bonnet."
 
I decided on the main requirements and started from there. I needed the smallest car with the largest boot space. Hopefully, it would be 1.3L for cheaper petrol, but I needed the largest capacity to fit building supplies easily. It also needed to be zippy enough to power up steep Dunedin hills. I Googled 'small car with large boot space' reviews and did the following:
  • Looked for popular brand vehicles so repairs are less expensive (avoid European vehicles) - a Honda Jazz looked the most suitable for my needs
  • Some of the most popular brands have warranties on secondhand vehicles. Buying one through a dealership felt safer than a private sale on Trade Me.
  • I discovered that Honda cars hold their prices and are set across NZ, so I wouldn't need to negotiate with a dodgy car dealer. I was too nervous to go for test drives, so I looked for customer YouTube reviews.
  • YouTube showed the amazing versatility of the Magic Seat setup in Honda vehicles, and I was convinced. I bought a 2019 Honda Jazz 1.3L 28,000 km for $19,000 from the Dunedin dealership. It has a three-year mechanical warranty.
  • As I was driving around picking up building supplies from Facebook marketplace so many people were shocked at how big it is inside. The rear seats lift up so there is space from foot well to ceiling. A mountain bike fits in easily. Among the building supplies I have carted, I can happily confirm it fits a Hills Hoist clothesline, kitchen cabinets, and a shower liner and last weekend, I carted two loads of timber fence posts (2.5m long)

​I am very pleased with my car and proud I could navigate the buying process by myself. Good luck ladies, you can do it too! "

Proven Tips For Assertive Communication

A 2022 story from Yahoo! Finance showed that even when armed with the same information as men, women statistically pay thousands of dollars more for the same car as a man. This accelerated pricing goes beyond the initial price and financing to the upgrades - it all adds up. Our list of assertive communication techniques and our generic script are published and routinely updated to help your negotiation process and combat the imbalance.

Know This First: Unfortunately, far too many salespeople engage in gender bias. They may assume you aren't prepared and will be easy to guide to higher pricing. The tips below help give you more power when communicating with your salespersons.
  1. Use Assertive Body Language: Even if you're nervous, stand up straight and look the salesperson in the eye when either of you is talking. Avoid crossing your arms, slouching, or looking at the ground. Remember - you're spending a lot of money, and what you do is your choice.
  2.  Use Non-Verbal Cues: Show that you're listening and understand what they're saying by nodding and displaying other relevant non-verbal cues, such as looking at what they're pointing to or touching the aesthetic feature they're explaining. Be engaged at all times - don't get distracted, and keep the focus on the car and the talk.
  3. Curb Your Enthusiasm: You're sure to be excited about finding a car you love but try to keep your excitement on the inside. It's a delicate balance, so be careful when showing your emotions while negotiating. We suggest saving your enthusiasm for holding a contract with the terms you want in your hand once you've negotiated the critical details.
  4. Take Your Time: Be clear that you 'probably' won't be buying today unless the 'right terms' are in place. If and when the high-pressure tactics begin, state that you're shopping around at several dealers.
  5. Keep Your Answers Short - there's no need to explain yourself: Share your wants and needs, but you don't need to elaborate. Leave your "no" at "no".
  6. Make It About You: Use "I" statements when speaking to affirm that this is your car and your decision, such as "I need" and "I don't need." 

A MoneyHub reader from Christchurch shares her story:
"When I bought my last car, I had a very bad experience with customer service from a certain brand dealer. I believe it was because I am a working single female with two teenage children. They treated me disgustingly. When a middle-aged farmer came in, they were all over him. It was awful. After two attempts, I walked out and told numerous others about my experience. I went to another car dealer and had great service and a lovely car within a week. Don't put up with bad customer service! It's your hard-earned money."

Must-Know Negotiation Tips

You aren't alone if you don't have much practice negotiating - most New Zealanders aren't experienced and don't do it regularly. Our scripts below are published to help you plan tactics to negotiate for a car while keeping calm and in control. Feel free to customise the scripts as needed - what we publish is simple but designed to cover the themes of each aspect of visiting a car dealership and the typical conversations that occur. 

MoneyHub Founder Christopher Walsh explains the scripts and their background in the video below:

1. Introductions when Stepping onto the Dealership

Script: "Hi, I'll buy a new car in the next few weeks. Today, I'm interested in test-driving [specific car model]. Do you have one I can test-drive?"

Why this is important: Starting the conversation with clear intent shows the salesperson that you are a serious buyer, which can often result in better service and more earnest negotiations.

Pitfalls and traps to avoid:
  • Avoid mentioning any urgency or immediate need for the car; this could make the dealer less flexible on pricing. Otherwise, you could face being pestered to "sign up to this deal, and you can drive the car away today", which is often not the best deal.
  • Don't let the salesperson push you into looking at other models if you're set on a specific one. Stay focused on your needs.

Our tip: Feel free to share your wants and needs before or during the test drive, but always be clear that you've researched and know what you need. Don't be talked into anything else - you know the car you're looking for, so don't be honey-trapped into something else.

2. Initial Price Negotiation

Script: "I see that the car is priced at [state price]. Based on my research, I understand its market value well. I believe a fair price would be [price range]. I'm currently shopping around, but can we discuss pricing further?"

Why this is important: Demonstrating your knowledge of the market value sets a tone of informed negotiation and shows the dealer that you won't easily settle for the sticker price. Using car valuation services helps to compare prices if you're looking for a used car, as any licence plate gives an estimate, helping you build a range of prices.

Pitfalls and traps to avoid:
  • Avoid revealing your maximum budget early in the negotiation. This could limit your ability to negotiate effectively.
  • Don't let the dealer steer the conversation towards financing or monthly payments too soon.

Our tip: Be confident and assertive in your initial offer and show you're open to negotiation.

3. Combatting Car Finance/Monthly Repayment Sales Pitch

Script: "I'm not ready to discuss financing yet. Can we return to the initial price?"

Why this is important: Focusing on the car's price rather than car finance repayments ensures you are negotiating the total cost of the car, not just what seems affordable monthly.

Pitfalls and traps to avoid:
  • Avoid getting sidetracked into a discussion about financing or monthly payments before you've settled on a price. This can be a tactic to obscure the true cost of the car.
  • The reality is that car salespeople make a lot of money selling cars with finance. If you have pre-arranged finance, this guide explains how to tell the salesperson you won't need a car loan.

Our tip: Stay firm on discussing the total price first. Financing terms can be negotiated later, although it's best avoided.

4. Initial Counteroffer on Car Price

Script: "I appreciate your offer, but I need to negotiate further. Based on my research and budget, I was thinking more along the lines of [counteroffer price]. What flexibility can you offer on your end?"

Why this is important: Showing that you're willing to negotiate and have a researched counteroffer can often lead to a better deal. You're also asking, "What flexibility?" which is an open question, as opposed to "Can you offer a lower price?" where the answer could be a firm "no".

Pitfalls and traps to avoid:
  • Don't accept the first counteroffer without further negotiation. There's usually room for more discussion.

Our tip: Remain polite but firm. Showing respect in negotiations can sometimes get you better results.

5. Justifying Your Counteroffer

Script: "I completely understand. However, I've seen similar cars listed at lower prices elsewhere, so I believe my offer is fair. What can you do so that we can reach a deal?"

Why this is important: Backing up your offer with evidence of lower prices elsewhere shows you're an informed buyer and can compel the dealer to match or beat competitors' prices.

Pitfalls and traps to avoid:
  • Avoid being confrontational. Keep the negotiation friendly and professional to keep the dealer willing to work with you.

Our tip: Have specific examples ready to show the dealer. This adds credibility to your counteroffer. You can take print screens from listings on Autotrader and Trade Me Motors, as well as car valuations of regos of the car you're after.

6. Handling Any Alternatives Offered to You

Why this is important: During negotiations, a salesperson may propose an alternative car to steer you away from your original choice. This often happens if the dealer has other inventory they need to move, or the alternative might offer them a better profit margin. While it's good to show flexibility, accepting an alternative without proper consideration can lead to a less favourable deal for you.

Script: "I appreciate your suggestion, but I've researched the [specific car model], and it's what I'm looking for. Are there other ways to work on the price or terms for this specific model?"

Why this is important: Sticking to your researched choice ensures you get a car that meets your needs and expectations. It also shows the salesperson that you are informed and not easily swayed by alternative options.

Pitfalls and traps to avoid:
  • Unfamiliar Alternatives: Avoid agreeing to an alternative car you haven't researched. The salesperson might offer an appealing model that doesn't meet your needs or has higher long-term costs.
  • Pressure to Decide: Don't feel pressured to decide on an alternative immediately. Take your time to consider all options thoroughly.

Our tip: While exploring all available options is beneficial, ensuring that any alternatives align with your original needs and research is essential. If an alternative is suggested, request time to research it thoroughly before deciding. This ensures you remain in control and make an informed choice.

7. Accepting Their Offer and Finalising the Purchase

Script: "I appreciate you working with me on this. I'm satisfied with your final offer and am ready to move forward. Can we discuss the next steps?"

Why this is important: Closing the deal with clear communication ensures no misunderstandings about the agreed terms and prepares both parties for the next steps.

Pitfalls and traps to avoid:
  • Avoid rushing through the final steps. Make sure all terms are clear and in writing.
  • Signing up for a finance deal with a car dealership is best avoided, as outlined in this 2020 Stuff.co.nz article (https://www.stuff.co.nz/business/opinion-analysis/122081037/why-you-should-never-accept-finance-at-a-car-dealership). Our guide to Car Dealership Finance vs Bank and Specialist Lender Car Loans has further details.

Our tip: Review all paperwork thoroughly before signing to ensure all negotiated terms are included.

Navigating Alternative Events:

Not everything goes to plan, and there may be variables like a trade-in, financing and add-ons. We outline the best way to approach these should they apply:

1) Declining Their Offer (with the option to pick things up later)
  • Script: "I appreciate your time. I'm still shopping around and need to explore my options further."
  • Why this is important: Leaving the negotiation if you're unsatisfied shows that you are not afraid to walk away, which can sometimes lead to a better offer later.
  • Pitfalls and traps to avoid: A polite approach avoids burning bridges and leaves the door open for future negotiations. You can come back if needed.
  • Our tip: Politely thank them for their time and express that you may return if your search doesn't offer better options.

2) Handling Trade-Ins
  • Script: "I have a [your current car model] that I'm considering trading in. Can we discuss its trade-in value?"
  • Why this is important: Including your trade-in vehicle in the negotiation can significantly affect the overall deal, lowering the amount you need to borrow or pay in cash.
  • Pitfalls and traps to avoid: Avoid accepting the first trade-in offer without doing your research. You must know the value of your car before going to the dealership - our car valuation tool is a helpful starting point.
  • Our tip: Get multiple trade-in quotes from different sources to leverage in your negotiation.

3) Discussing Add-Ons and Extras
  • Script: "I noticed that the car comes with [specific add-ons or features]. Are these included in the price, or are they extra?"
  • Why this is important: Dealerships often try to upsell additional features or services, which can inflate the final price. Clarifying these costs upfront can help you avoid unexpected charges.
  • Pitfalls and traps to avoid: Avoid agreeing to add-ons without knowing their full cost and necessity.
  • Our tip: Decide in advance which add-ons are essential and which ones you can do without. This will help you stay within budget.

4) Understanding Financing Options
Our dedicated guide to car dealership finance vs alternatives covers this important aspect of a car purchase.

Our final tip: Stay calm, confident, and polite throughout the process. Building a positive rapport with the salesperson can sometimes lead to better deals and a more pleasant buying experience.

Negotiation Strategies

Negotiating for a car can feel intimidating, but you can remain confident and in control with the right strategies and mindset shifts. Below are some key strategies to help you secure the best deal possible which is an extention to the above steps. 

1. Never Pay The Sticker Price
  • Each car will have a sticker price when you arrive at the dealer. This is the price suggested by the manufacturer. Never pay this price because dealers usually have some flexibility with the sticker price. They may be willing to lower the price to make a sale, especially if you demonstrate that you are informed and prepared to negotiate.
  • Manufacturers and dealers frequently offer various incentives, such as rebates, discounts, or special financing offers that can reduce the sticker price. Dealers often include add-ons like extended warranties, paint protection, or interior treatments, which can inflate the sticker price. These add-ons are often negotiable or can be declined.

2. Don't Limit Yourself to the Lot
  • Car dealerships encourage their sales staff to sell what's on the lot first. Of course, you want your car sooner than later, but the cars on the lot may not have all the desired features. So, hold your ground and stick with what you want. The right car won't always be available on the day you visit.

3. Know What You Want and Need
  • Cars on the lot typically have a mid-to-high range of features, and you may not need all of them. You'll need to ask about what upgrades the sticker price includes. Even with the features you want to be added and those you don't want to be subtracted, don't take up the first price the salesperson offers.
  • Most importantly, although tempting, don't let them talk you into features you don't need - the costs are often inflated and not essential to the car.

Understanding the Most Common Car Sales Tactics

During the initial and ongoing negotiation process, you will likely encounter at least one of the most common sales tactics. We explain each of them alongside the most effective way to respond so you can anticipate their arrival and respond confidently.

1. Profiling (if you're relying on Car Finance to pay for the car)
  • One of the first questions a salesperson will ask you is how much you want to spend per month. If you're paying cash for the car, this question is irrelevant. However, if you're getting car finance, it's a strategic question.
  • Beyond the potential for conscious or subconscious gender bias, sales staff are trained to profile you with their first few questions. Asking you what you want to spend per month isn't the same as asking how much you want to spend on your new car.
  • Your financing can be spread out between 2 years and five years. So, this question is designed to determine the highest possible sale at the longest possible terms. The longer your loan terms, the more you spend on interest - a bad situation.
  • Your Response: "I'm here for a test drive. Tomorrow, I'll return and talk numbers".
  • You can expect pushback, but stand your ground.

2. Urgent Sales Deadline
  • One of the most common high-pressure tactics is offering you an exclusive "today-only" deal. This might be an advertised deal or one the salesperson offers up "just for you". The urgent sales deadline may be offered early on or only once you mention leaving to take some time to consider your options - but don't fall for it.
  • Take all the time you need to consider your options. If you return for the car, you can use the "today-only" offer as a very strong price negotiation tool.
  • Your Response: "I understand that I may not be able to access the same price if I walk away today, but I'm okay with that" or "Are you telling me you can't sell me the car if I return tomorrow?"

3. Wear You Down
  • Some salespeople rely on a negotiation tactic designed to exhaust you. They will bombard you with upsells, try to push other cars on you or employ countless stall tactics. The objective is to confuse or wear you down to the point that you just want to get things over.
  • If this is your salesperson's strategy, it might be best to walk away. You could ask for a different salesperson, return in a few days, or find a dealer whose tactics aren't so exasperating.
  • Your Response: "Let me think it over, and I'll return in a few days".
  • This response will surprise them, as they don't want to lose your sale. Once you say you're leaving, you must commit. If you stay after you tell them you're leaving, the salesperson will believe they're the one in control. The purchasing power is yours.
  • If you return, they'll be more open to listening and negotiating, knowing you have the power to leave (as you have demonstrated below).

4. The Hard and Fast Close
  • This sales tactic will consist of a shower of compelling offers. For example, "If I can get your monthly payment down to $X, can we sign today?" Or maybe, "If I throw in the X, Y, and Z you mentioned for free, will you buy today?"
  • This tactic distracts your attention from the item you're trying to negotiate.
  • Your Response: Simply say "no" and return to the item you were negotiating. If they keep offering "special deals", state that you're shopping around at a few different dealerships to find the best offer. Then, return to the item you're negotiating.

5. Pros and Cons List
  • This sales tactic entails the salesperson creating a list of pros and cons for why you should buy today. As you know the pros and cons, this is a bold move, and it's not for the salesperson to create a list.
  • Your Response: "Thank you, but I have my own list of pros and cons". Then, return to your negotiation.

6. Lot-Only Options
  • Also known as the alternative close, the best salespeople sell what they have on the lot today--not what has to be ordered. This is a top reason (beyond a higher price point) to persuade you away from the car you've already researched. It might be as simple as a different colour car or upgrades that add thousands of dollars to the initial purchase price—maybe even an entirely different car.
  • This tactic can be difficult to resist as it comes with pressure. However, you have the power.
  • Your Response: Remain relaxed, leisurely, and noncommittal. Stick to the topic at hand. "I've clearly outlined the make, model, and features I need, and that car doesn't fit my criteria."

7. Ask My Manager
  • This tactic's only objective is to make you anxious, but it's theatre, and you have all the power. 'Ask My Manager' is typically employed once you're seated and in negotiation. The salesperson will feign that they need to ask their manager's permission to consider what you're trying to negotiate.
  • This might be on price or to stall when you request to see the line items.
  • Your Response: Don't sweat because they're just stalling. This tactic is designed to make you change your mind. You're making a major purchase and have every right to negotiate price and terms, review line items, and decline line items.
  • Remember, it is your money and your decision about whether you buy the car, not theirs.

A MoneyHub reader from Wellington shares her tips:
  1. Check the Odometer: Ensure the odometer reading on the Sale and Purchase agreement matches the car's actual odometer - they don't always align, which happened in my case.
  2. Key Functionality: Verify the functionality of all keys provided. My car had only one key, and its unlock buttons didn't always work. The key could start and unlock the car manually, but the buttons were unreliable.
  3. Ask for Two Keys: Make sure to request two keys at purchase. I didn't think to ask until later and had to get a replacement, which was an added cost.

After the Purchase – Next Steps and Must-Know Facts

In addition to being charged more when purchasing a new car, women are often charged more for maintenance and repairs or, in some cases, advised to complete arguably unnecessary maintenance and repairs. If your car is brand new, it will be a while before you need anything other than an oil change.

The tips below will help you obtain fair pricing when you require more expensive maintenance and repairs.

1. Know That Manufacturers Always Cost More
  • If you go to a brand-name repair shop, such as Toyota, your repairs and maintenance will likely cost more. This is because brand-name repair shops use original equipment manufacturer (OEM) parts rather than generic parts.
  • They're also likely to charge more per hour for repairs, given their premium positioning. If you have a luxury vehicle, your parts will usually cost more.

2. Ask For Referrals
  • If you won't be going to a brand-named repair shop, ask friends and family for referrals from shops they trust. Don't just ask for the name of a shop; also ask for the mechanic's name. Be sure to let the mechanic know who referred you, as this will encourage a good impression. Our list of mechanics in Auckland is one example of a guide that has further options, with Hamilton, Tauranga, Lower Hutt, Wellington, Christchurch and Dunedin also covered. 

Important:
  1. With or without a referral, check consumer reviews about mechanics online.
  2. Don't just look at the star rating - read the reviews to assess listening skills, quality of repairs, and integrity.
  3. Pay close attention to what other women have to say.

3. Check Prices Online
  • If you know what maintenance or repairs you require beforehand, search online for an estimate. If you aren't sure what repairs you require, check the price range online after you receive your estimate.

4. Request a Detailed Estimate
  • You might not need an estimate for standard maintenance, such as a tune-up, but feel free to ask for a detailed estimate for more extensive services and repairs. This will ensure you understand the price for parts and labour.

5. Ask Questions
  • A mechanic who works with integrity is always available to answer your questions. Feel free to ask:
  • What does the repair entail?
  • If there are any alternatives?
  • The likelihood of the estimate increasing?
  • How long will the repair take?
  • About their part and service warranty?

6. Obtain Multiple Quotes
  • Cheaper isn't always better, but don't hesitate to shop around. If you see a big difference in the price of parts, it may be the difference between OEM and generic parts. The biggest price difference is likely to be in labour costs.

7. Stick With Who You Trust
  • Once you find a mechanic you know you can trust, stick with them.​

A MoneyHub reader from Napier shares her story:
"I took my car for a WOF to the garage where my late husband had bought the car. The mechanic called me to say significant work was needed before he could issue the warrant – brake pads, brake discs, and other things – and the quote was over $1,000. I didn't have that money available, but a friend suggested I take the car to VTNZ for a warrant and quick auto check. I did, and the car not only passed its warrant with flying colours but I was also told I had an excellent buy and shouldn't have any problems with the car. I specifically asked them to test the brakes and wheels, and they found no issues.

I returned to the original garage (now with a VTNZ warrant) and spoke with the manager, who had initially been so kind. He took the car to the mechanic, but they couldn't find the original faults. The manager apologised, but I never went back to that garage again. I kept the car for many years, including teaching my teenagers to drive and get their licenses".

General Background: 8 Things to Consider When Buying a Used Car

If you're buying a used car from a dealership, how much you'll pay will mostly depend on what car you buy, but there are many easy ways to lower the final bill. We outline must-know facts:

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 2024 Toyota Corolla, which lists for around $39,000 new. By the time it's one year old with 10,000-15,000 KMs on the odometer, it costs around $31,000-$33,000, a reduction of around 20% 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 can be picked up for around  $17,000 (depending on the mileage), 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 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:
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 – visit the NZTA website for all the latest pricing 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 - 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-$70 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 $750 per 10,000km road user charge on diesel.

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.

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 from a Dealer - What you Need to Know

1) Buying a used car from a dealer gives you protection, but you may 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. 

2) You should still get a pre-purchase inspection even if the dealers says the car is AA Appraised cars

  • ​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. ​

3) Most dealers are honest - but you need to research to find them

  • ​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.

4) Ask relevant questions about a used car's history to minimise the risks

Many New Zealanders 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. 

5) Understand when and what protection Trade Me offers

  • 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.

Frequently Asked Questions

How can I ensure I'm not being overcharged for a car?

Research the market value of the car you're interested in by using online valuation services like our free service and tools like CarJam. You can also compare prices from multiple dealerships using listings on platforms like Trade Me and AutoTrader. Knowing the price range will give you a strong negotiation position.

What should I do if I feel uncomfortable or disrespected by a salesperson?

It happens more than it should - we suggest speaking to another salesperson or leaving the dealership. Trust your instincts; your comfort and confidence are paramount. You can also bring a friend or family member for support and power in numbers. Report any inappropriate behaviour to the dealership management and share your experience on review platforms to help other buyers.

Are there specific tactics I should know that salespeople might use against women?

Yes, be aware of tactics such as focusing on monthly payments instead of the total price, suggesting unnecessary add-ons, or making comments undermining your confidence. Salespeople might also pressure you to quickly decide with "today-only" deals. Stay firm on discussing the overall price and features you need. It's crucial to take your time and not rush to decide.

How do I handle financing options and ensure I get a good deal?

Shop around for financing options before going to the dealership. Compare interest rates and fees from brokers, specialist car lenders, banks, credit unions, and online lenders. Having pre-approved financing can give you leverage in negotiations. Understand the loan terms, including the interest rate, repayment period, and additional fees. Avoid focusing solely on monthly payments; instead, consider the total cost of the loan over its term.

What are the benefits of getting pre-approved financing?

Getting pre-approved financing gives you a clear budget and strengthens your negotiating position. It allows you to compare interest rates and terms from different lenders, ensuring you get the best deal with a car being "on the line" - you do everything in advance without any rush. Pre-approval also simplifies the buying process, as you'll know exactly how much you can afford to spend. This can prevent you from being swayed by dealer financing offers that might not be as favourable.
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