Buying a car in New Zealand
Buying a car in New Zealand is an exciting prospect. But you can't let the excitement of purchasing a new set of wheels distract you from doing things right. In this guide, we'll tell you all you need to know about buying a vehicle in NZ.
Nailing down your car make and model according to budget and reliability
The first step to buying a car in NZ is to identify the make and model that will suit your needs and budget. You should always choose a vehicle that is fit for purpose over one that goes fast or looks good.
Begin by setting your budget. Consider whether you'll use your savings or take out a loan. If you choose to finance the purchase, speak to lenders to find out how much you can borrow, being careful to understand how the interest rates will increase the total purchase price.
When setting your budget you should also consider the ongoing costs of car ownership such as licensing, road user charges (for diesel and electric vehicles) and car insurance. In terms of car insurance, remember that this is less of a cost than it is an investment - by choosing comprehensive insurance from a high-quality provider like AMP, you can be confident that you'll be covered if issues arise or an accident occurs.
Budget set, form a list of wants and needs, such as seat count, fuel type, efficiency, performance and features, then look for cars that tick every box at the right asking price.
Researching and finding a car
Now that you know what you're looking for, it's time to find it.
Your first decision is whether to buy new or used, and the answer will often be determined by your budget. Buying new is the more expensive option, but you'll enjoy a modern motor vehicle that is backed by a warranty, and that you won't have to run any checks on. Visit a few car dealerships to test drive different options and to find the best deal.
Buying used can save you a lot of money, though you need to be a little more careful in terms of checking the car over (more on that in a moment). You can buy a used car from a dealership or a private seller: sites like Trade Me and AutoTrader NZ are the best places to start your search.
Checking the car's condition
If you're buying a used car, you must conduct a thorough pre-purchase inspection on any vehicle you want to buy.
The first step to checking the car's condition is to take it for a test drive. Issues can become immediately apparent when you drive a car, even if you're not much of a car person. If you know someone who is a car person, consider bringing them along.
Ask for the car's ownership and servicing history, being sure to check the logbook for regular services that have been stamped by a registered mechanic.
It's wise to get a specialist inspector to conduct a vehicle check for you before you make an offer, particularly. This step is less important if you buy from a car dealer who offers a decent level of warranty on the cars that they sell.
In New Zealand you can check whether a car is stolen by running the registration number or VIN number on the New Zealand Police database. You can also check whether there's any money owed on the car by visiting the Personal Property Securities Register (PPSR) website.
Completing the purchase
If you've found a car, conducted a pre-purchase inspection and agreed on a price, the final step will be to complete the necessary ‘change of ownership’ documentation. You can complete the form online or at a New Zealand Transport Agency (NZTA) Agent. You will not need to pay a fee.
If you buy a vehicle from a private seller in New Zealand, it's also wise to get a purchase receipt that describes the car, the agreed price, the date of the purchase, and the name, address and signature of both you and the seller.
FAQs
You don't have to hold a NZ driver's license to buy a vehicle in New Zealand. Foreigners can buy here too, even if they are only on a short trip. In fact, buying a cheap car or campervan is quite a popular option, as a visitor can often sell the car for around the same price as they bought it, so it's almost like a free rental!
'Expensive' is a relative term. After you buy your house, your car will often be the second-most expensive thing you'll ever own, but it's often a necessary purchase. Keep in mind that on top of the purchase price, the total cost of car ownership will also include ongoing charges like vehicle licensing and registration, a Warrant of Fitness (WoF), petrol, servicing, car insurance, parking and cleaning.
Buying new is more expensive than buying used. But new cars are a less risky purchase that offer greater peace of mind: they come with zero issues and generous warranties if something were to go wrong. It's up to you to decide whether the extra money is worth it.
Got questions about car insurance?
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The information in this blog is of a general nature and does not constitute financial or other professional advice. Policy limits and exclusions apply - refer to the policy wording for full terms and conditions.