Selling a car in NZ
Whether you're upgrading your wheels or perhaps getting rid of them altogether, you'll need to sell your vehicle. As the second-most valuable item many Kiwis will ever own, this is no small sale.
Before selling a car in NZ, you should work to understand the process and your responsibilities as the seller, which we've compiled in this handy guide.
Preparing the vehicle for sale
Before we learn how to sell your car in New Zealand, we first need to ensure that the vehicle is ready to be sold. You need to have all the licensing paperwork up to date and ready for transfer, you need to ensure the vehicle is roadworthy, and you need to make the car as presentable as possible to potential buyers.
Secure a Warrant of Fitness (WoF)
When selling a car in NZ, you need to obtain a Warrant of Fitness (WoF) from an NZTA agent - the regular check that ensures your vehicle meets required safety standards (unless you and the buyer agree to a sale without it). Your WoF can be no more than a month old (or more precisely, 28 days) when the buyer takes possession of your car.
Servicing and detailing
Beyond the WoF, you should gather together any proof of regular vehicle servicing that you might have - ideally in the form of a car service logbook, but receipts from a mechanic can also do the job. If you haven't had a car service in a while, doing so may help you to sell. A clean car is more attractive to buyers, so consider getting yours detailed.
Pay outstanding licence fees and Road User Charges (RUC)
The buyer is only required to pay licensing fees from the date that they buy the vehicle, so you need to ensure that those fees are paid up to that date, or if you're selling an unregistered car, that any outstanding licensing fees are paid.
If you're selling a diesel or electric vehicle, you'll also need to ensure that your Road User Charges are paid up to the date of the sale.
Listing and selling your car
Once all the red tape is dealt with, you'll be ready to sell your car.
Selling a car privately vs. selling to a dealer
There are two ways to sell your car: privately or to a dealer. The dealer is by far the quickest and simplest option, particularly since the sale is part of a trade-in arrangement. The dealer will take care of all the paperwork, all you'll need to do is sign it. But this convenience comes at a price. Dealers need to make money when they buy and sell vehicles, so the trade-in value of your car will be lower than the amount you can earn through a private sale.
A private sale requires far more effort - listing your car, speaking to and negotiating with potential buyers, going on test drives, and completing the paperwork - but you'll usually earn a little more. Only you can say whether you think the extra effort is worth it.
Pricing and listing the car
Those who choose to sell a vehicle privately will be responsible for setting their own price.
Once you've settled on a sale price, you'll need to let the world know that their motor vehicle is for sale. There are any number of ways to do so, from the old school and analogue, like a newspaper listing or placing a 'for sale' sign in your window, to the modern and digital, like posting on social media or adding a listing to Trade Me or AutoTrader NZ.
Whatever channel you choose, you'll need to serve up all the information that buyers will want to know, including:
- The make, model, year and body type (sedan, SUV, hatchback, ute)
- The transmission type (automatic or manual)
- The fuel type (petrol/diesel/hybrid/electric)
- The engine type and capacity
- The odometer reading
- WoF, RUC and licencing information
Beyond those basics, a potential buyer may also want to know a bit about the history of the car, the condition it's in (always be upfront about any aesthetic, technical or mechanical issues) and any features like tow bars or roof racks.
All going well, you'll soon get some interest. If you're nervous about a potential buyer going for a test drive, ask to ride with them.
Who is responsible for change of ownership when selling a car?
When you sell your car in New Zealand you'll need to complete the ‘change of ownership’ documentation. As the seller, you'll need to complete a simple online form. The buyer, meanwhile, can fill in the necessary paperwork online or at a NZ Transport Agency Agent to complete a "change of registered person - buyer (MR13B)" form.
It's also wise to create a purchase receipt that describes the car, the agreed price, the date of the purchase, and the name and address of both you and the buyer. Create two copies for both parties to sign.
Do you need insurance for your next car?
Once you've sold your old car and purchased your new car, you'll need to make sure that the new vehicle is insured by a trusted provider like AMP. If you had AMP car insurance on your old car, you can transfer the policy over to your new car by giving us a call at 0800 505 234.
If you don't currently have AMP car insurance, securing the perfect policy couldn't be easier. With AMP you enjoy total control over how your motor vehicle is insured: you can choose cover based on market value or an agreed value, choose Comprehensive, Third Party Property Damage, or Third Party Fire & Theft, and you can pay your way, whether fortnightly, monthly or as an annual lump sum.
FAQs
Per NZ Transport Agency rules, only one registered person can be recorded per vehicle on the Motor Vehicle Register. You can however name other people as drivers on your insurance policy to ensure that you are properly covered if an accident were to occur while someone else was driving - get in touch with AMP to find out more.
No, when you sell a car in New Zealand you do not have to pay any tax or fees on that sale. If you sell more than six cars in a single year you will be considered a car dealer, at which point you will need to register as such and pay tax on your sales.
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.