Buying a used car from a private seller in New Zealand
About half of New Zealand's used car sales are private (MIA / MTA). They are often cheaper, but you have fewer protections if something goes wrong after you buy.
Why it matters
A registered dealer has to meet the Consumer Guarantees Act and you can take a claim to the Motor Vehicle Disputes Tribunal. A private seller generally doesn't have to, so what you check before you pay is most of your protection. In the 2024 NZ Consumer Survey, 22% of private-sale buyers had a problem with the car, against 17% of dealer buyers.
The checks
- Money owing and history: a CarJam or MotorWeb report with the plate. Make sure the seller's name matches the ownership record.
- The car itself: outside, inside, under the bonnet, underneath, a test drive and the fault codes. Follow how to check a used car, or let Credov build the checklist for the exact car.
- The known faults for the model: see common problems by model.
- The papers: service receipts, the WoF, and the timing belt record if it has one.
Paying
Pay by bank transfer to an account in the seller's name, get a written receipt with the plate, VIN, price and both names, and change the ownership online the same day.
Questions
Does the Consumer Guarantees Act cover private car sales?
Generally no. It covers sales by businesses in trade, such as registered motor vehicle traders, not private sellers. Check with Consumer Protection for your situation.