Citizen Advice Bureau - Monthly Comumn
Buying a car privately: what you need to know
You’ve found the perfect car online. It looks great, it’s within budget, and the seller seems nice. You take it for a spin, hand over your savings... and then – uh-oh – just around the corner, it breaks down. Sound familiar?
We hear heart-breaking stories like this more often than you’d think.
If you’re buying a car privately, there are a few smart steps you can take to help steer clear of trouble.
Number one: do your homework!
Research the car’s history. Has it been in any accidents? Does it have any money owing on it? These are all important things to know before you hand over your hard-earned cash!
Before driving away, get the name and address of the owner. This helps if you do have any issues. If the owner is leaving the country, it is almost impossible to get compensation if things go wrong.
Get the vehicle checked
Always get the car inspected by a professional mechanic. A pre-purchase check can uncover hidden issues that could save you thousands later.
Check for outstanding finance
If there’s still money owing on the car, the finance company could legally repossess it – even if you paid the owner. Always check the financial status before buying.
A couple of helpful websites to get this information:
CarJam – Provides ownership history, finance status, and whether the vehicle has been stolen or written off.
NZTA – Motor vehicle register for vehicle information, including odometer reading, WoF records, and other details.
If things go wrong… what can you do?
Talk to the seller, they may listen but ... in New Zealand, when you buy from a private seller, you’re not covered by the Consumer Guarantees Act. The rule of thumb is ‘buyer beware’, meaning it’s up to you to check the vehicle’s condition before you buy.
Some legal options may apply:
If the seller deliberately lied or misled you about the condition of the vehicle, you may be protected under the Contract and Commercial Law Act or the Fair Trading Act.
You can take a private seller to the Disputes Tribunal (for claims up to $30,000) if you believe you’ve been misled.
Even though the law offers fewer protections for private car sales. If things go wrong, Queenstown Citizens Advice Bureau is here to help. We can explain your rights, assist with next steps, and support you in making a claim if needed.
