How to buy and sell a car, motorhome or motorhome in New Zealand
There are three main ways for people to buy and sell cars and other vehicles in New Zealand: authorized motor vehicle dealer, newspapers, and auctions. The Internet and car fairs are also used.
change of ownership
This is done with two forms, filled out by the buyer and the seller, the buyer pays for this and it costs around $10 nzd. The buyer takes one form to the post office and the seller sends the other form. The new Registration Certificate is then sent to the new owner. The form is not a document of ownership, but it does show that the new buyer is the registered owner.
WOF and Registration
All vehicles on New Zealand roads must have a valid WOF and registration or you will be fined by the police if you drive a vehicle with either of these things expired. The WOF is a 15 minute check that takes place every 6 months on older vehicles and 12 months on newer vehicles. This check is to make sure the vehicle is safe and roadworthy. It will cost you around $25-$55 nzd depending on the check facility. Many workshops offer this service, as well as purpose-built testing facilities, with a total of around 3,500 WOF agents across New Zealand.
If you have a current WOF, you can go to your nearest post office and buy 3-12 months worth of records. This will cost around $230 nzd for 1 year.
Sure
Insurance is not compulsory in New Zealand, but most people do have insurance. If you have insurance, it covers damage you do or someone else does to you. Any injury is covered by ACC (Accident Compensation Corporation), this is an area of the Government that pays for your injuries and loss of income from any accident.
Insurance is not that expensive compared to somewhere like the UK. Here is an estimate; comprehensive insurance for a 29 year old driving a standard $6000 car, with a good driving record, would cost around $350 nzd.
Money owed by the previous owner
You will need to ensure that no money is owed on the vehicle, otherwise you may find yourself in a situation where the car is repossessed to pay off the previous owners’ debts. For $3 you can check the vehicle with the Personal Property Values Registry (tel 0900 90977; website http://www.ppsr.govt.nz). You will need to provide details of the car’s registration, VIN and chassis number.
Authorized Motor Vehicle Dealer
These are exactly what their title tells you they are licensed to trade in motor vehicles. They offer you the most protection when buying a vehicle. They provide warranties and must represent the vehicle accurately and in salable condition. For the most protection, you’ll pay a “retail” price, which in most cases will be more than you would pay on the “wholesale” auction market.
Newspaper
This option is open to anyone in any region to list their vehicle at the price they want with a general rule of thumb as is. Once you’ve taken your car or other vehicle out of any individual in the newspaper and something isn’t right, the problem is now yours. There are regional newspapers and the most popular are the trade and exchange type newspapers in each region. These are free for private sellers to advertise on and the paper cost to purchase is just under $3.00 nzd.
Auction
This option is very popular as it is the “wholesale” market price of a vehicle that you can choose a cheap vehicle if you buy it and achieve amazing results if you sell it on a time and place basis. The most respected and professional auction company nationwide is Turners, and a visit to them may be worth it. They have many auctions a week.
Auctions are the same as the newspaper and all vehicles are sold as is, you need to check current WOF and registration and it’s up to you to classify new ones if they are expired. Turners has expanded its business over the years to be more user friendly and now offers warranties, financing and pre-purchase vehicle appraisals. The auction will charge a commission to sell and a fee to buy.
Internet
The Internet can be treated in the same way as an advertisement in a newspaper. All vehicles are treated as they are where they are. Three good website companies are Trade Me and Tradepoint or, if you’re looking for a camper or motorhome, http://www.adventurekiwi.net
car show
These are installed in major centers across New Zealand and are treated the same as a private newspaper sale when it comes to buyer protection. With so much to do in New Zealand, you can sometimes spend a lot of time hanging around car shows, so this would be a good place to shop with other tourists who need to relocate.
