The Complete Guide to Buying Used Cars in New Zealand

The New Zealand used car market offers excellent opportunities to find reliable, affordable vehicles. Whether you're a first-time buyer or looking to upgrade, understanding the process, knowing what to look for, and being prepared can save you thousands of dollars and years of trouble. This guide covers everything you need to know about buying used cars in New Zealand.

Understanding the New Zealand Used Car Market

New Zealand has a unique automotive market influenced by several factors:

• Import Market: Many used cars are imported from Japan, offering good value
• Right-Hand Drive: Ensures compatibility with New Zealand roads
• Diverse Climate: Vehicles from different regions may have varying wear patterns
• Strict Safety Standards: All vehicles must meet WOF requirements
• Strong Resale Values: Well-maintained vehicles hold their value well

Setting Your Budget

Before you start shopping, establish a realistic budget that includes:

Purchase Price

• Determine your maximum spending limit
• Consider financing options if paying cash isn't feasible
• Factor in negotiation room (typically 10-15% below asking price)
• Remember that cheaper isn't always better

Additional Costs

• Registration Transfer: Approximately $9
• WOF (if required): $54.30 for cars, $66.05 for heavier vehicles
• Insurance: Get quotes before purchase
• Immediate Repairs: Budget 5-10% of purchase price
• Financing Costs: Interest and fees if using a loan

Where to Buy Used Cars

Licensed Dealers

Advantages:

• Consumer Guarantees Act protection
• Professional preparation and presentation
• Financing options available
• Trade-in opportunities
• After-sales support

Considerations:

• Higher prices due to overhead costs
• Limited negotiation room
• May have dealer preparation fees

Private Sales

Advantages:

• Lower prices
• Direct communication with previous owner
• Complete vehicle history
• More negotiation flexibility

Considerations:

• Limited legal protection
• No warranty or guarantees
• Higher risk of undisclosed problems
• No financing assistance

Car Auctions

Advantages:

• Competitive pricing
• Large selection
• Professional vehicle descriptions
• Regular events

Considerations:

• Limited inspection opportunities
• Auction fees and commissions
• Bidding competition
• As-is sales with limited recourse

Research Before You Shop

Vehicle History and Value

• Use AA's Dogwatch: Check for outstanding finance, theft, or write-offs
• Red Book or Glass's Guide: Determine fair market value
• Online Reviews: Research specific model reliability and common issues
• Manufacturer Recalls: Check for any outstanding safety recalls

Model-Specific Research

• Common problems and failure points
• Typical maintenance costs
• Parts availability and cost
• Expected depreciation rates
• Insurance costs for specific models

Essential Pre-Purchase Inspection

Exterior Inspection

• Paint and Body: Look for rust, dents, scratches, or mismatched paint
• Panels: Check for alignment and gaps between panels
• Lights: Test all lights including indicators, brake lights, and hazards
• Tyres: Check tread depth, even wear, and sidewall condition
• Glass: Inspect for chips, cracks, or signs of replacement

Interior Inspection

• Seats: Check for excessive wear, tears, or stains
• Electronics: Test radio, air conditioning, and all electrical components
• Controls: Ensure all switches, buttons, and knobs function properly
• Odometer: Verify mileage matches service records
• Pedals: Check for excessive wear that might indicate high mileage

Engine Bay Inspection

• Fluid Levels: Check oil, coolant, brake fluid, and power steering fluid
• Belts and Hoses: Look for cracks, fraying, or deterioration
• Leaks: Check for any fluid leaks or staining
• Battery: Inspect terminals for corrosion and check age
• General Condition: Look for signs of recent repairs or poor maintenance

Undercarriage Inspection

• Rust: Check for structural rust, especially around wheel wells
• Exhaust System: Look for holes, excessive rust, or loose components
• Suspension: Check for leaking shocks or damaged components
• Oil Leaks: Look for fresh oil stains or drips

Test Driving

Before Starting

• Ensure you have a valid license and insurance coverage
• Check that the vehicle is legally drivable (current registration and WOF)
• Plan a route that includes various driving conditions
• Bring someone knowledgeable if possible

During the Test Drive

• Starting: Engine should start easily and idle smoothly
• Transmission: Test all gears (manual) or smooth shifting (automatic)
• Steering: Should be responsive without pulling or excessive play
• Brakes: Test gradually, checking for even stopping and no noise
• Suspension: Car should handle bumps without excessive bouncing
• Noises: Listen for unusual sounds from engine, transmission, or wheels

Test Different Conditions

• City driving with stop-and-go traffic
• Highway speeds for engine and transmission performance
• Parking maneuvers to test steering and visibility
• Hill starts (for manual transmissions)

Documentation and Legal Requirements

Essential Documents

• Registration Certificate: Proves legal ownership
• WOF Certificate: Must be current (under 6 months old for cars over 6 years)
• Service History: Evidence of regular maintenance
• Import Documentation: For imported vehicles
• Finance Clearance: Proof that any loans are settled

Transfer Requirements

• Complete change of ownership forms
• Pay registration transfer fee
• Update insurance before taking possession
• Ensure WOF is current or arrange inspection

Negotiation Strategies

Preparation

• Research fair market value thoroughly
• Identify any issues found during inspection
• Determine your maximum offer before negotiating
• Be prepared to walk away

Negotiation Tactics

• Point out specific issues that need addressing
• Use market research to justify your offer
• Consider total cost of ownership, not just purchase price
• Be respectful but firm in your negotiations
• Don't be afraid to negotiate on extras (WOF, registration, accessories)

Financing Options

Cash Purchase

Advantages:

• No interest charges
• Stronger negotiating position
• Immediate ownership
• Lower total cost

Bank Loans

Advantages:

• Competitive interest rates
• Pre-approval available
• No dealer markup
• Flexible terms

Dealer Finance

Advantages:

• Convenient one-stop shopping
• Sometimes promotional rates
• Quick approval process

Considerations:

• Often higher interest rates
• May include unnecessary add-ons
• Less flexible terms

Professional Inspections

For expensive vehicles or when you're unsure about condition, consider a professional pre-purchase inspection:

When to Get Professional Inspection

• High-value vehicles (over $15,000)
• Vehicles with complex systems (luxury, performance, or hybrid cars)
• When buying from auctions or sight unseen
• If you're not mechanically knowledgeable
• When the seller seems evasive about the vehicle's condition

What Professional Inspections Cover

• Comprehensive mechanical inspection
• Body and paint assessment
• Road test evaluation
• Written report with photos
• Estimated repair costs for any issues
• Overall condition rating

Red Flags to Avoid

• No Service History: Indicates poor maintenance
• Multiple Previous Owners: May indicate problems
• Fresh Paint: Could be hiding accident damage
• Mismatched Tyres: Suggests poor maintenance or alignment issues
• Reluctant Seller: Won't allow proper inspection or test drive
• Unusual Depreciation: Price too low for year/condition
• High-Pressure Sales: "Buy now or miss out" tactics
• No Documentation: Missing registration, WOF, or import papers

After the Purchase

Immediate Actions

• Transfer registration within 7 days
• Update insurance coverage
• Schedule any necessary repairs
• Familiarize yourself with vehicle features
• Set up maintenance schedule

First Few Weeks

• Monitor for any issues not apparent during inspection
• Keep all receipts and documentation
• Address any warranty issues promptly
• Establish relationship with a trusted mechanic

Special Considerations for Imported Vehicles

Many used cars in New Zealand are imported, primarily from Japan:

Benefits

• Often well-maintained with detailed service records
• Lower mileage due to Japan's compact geography
• Advanced features and technology
• Competitive pricing

Considerations

• Parts may be more expensive or harder to find
• Some features may not be suitable for New Zealand (TV, navigation)
• Different service intervals or specifications
• Language barriers in documentation

Conclusion

Buying a used car in New Zealand can be a rewarding experience when approached with knowledge and preparation. Take your time, do thorough research, inspect carefully, and don't be afraid to walk away from a deal that doesn't feel right. Remember that the cheapest car isn't always the best value – focus on finding a reliable vehicle that meets your needs and budget.

The key to successful used car buying is patience, preparation, and persistence. With this guide as your foundation, you'll be well-equipped to navigate the New Zealand used car market and find a vehicle that will serve you well for years to come.