Buying a used car in NZ... so how does that work then?

Buying a used car in NZ... so how does that work then?

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generic username

Original Poster:

3 posts

146 months

Tuesday 11th September 2012
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Hi guys, I'm hoping someone here might be able to give me a bit of advice. I'm a UK citizen, and will soon be moving to Christchurch for a 3 month work placement. I'd like to have a car while I'm there, and figure it makes more sense to buy a cheap banger ($1000ish) and sell it on when I leave, rather than hire a car for the duration.

I've had a good look at the NZTA website, and naturally things are a bit different to the UK; so I just wanted to check that I've understood everything correctly, and maybe hassle you with more dumb questions.

Insurance - is not mandatory.
Roadworthiness - vehicle must have a current WoF, issued within the last month.
Licensing - AKA "rego"? Costs about $78/3 months. Vehicles must be licensed continuously, if licensing after the previous license has expired you're liable for backdated fees.
Registration - buyers must notify NZTA and pay an acquisition fee ($9.41) to get a transfer receipt; you need to show this to the seller before you can complete the sale.

Does that sound about right? Anything else I should be aware of? What can I expect for $1000? So many questions... any help or advice would be very gratefully received, and possibly compensated with beer. Cheers!

Esprit

6,370 posts

290 months

Tuesday 11th September 2012
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Sounds about right.

Generally $1000 is basic level for something that's registered and WOF'd, you won't be getting a lot for that money though.

As for the WOF at point of sale being issued in the last month, while that's a requirement for dealers, it's not for private sellers.... the car will come with a WOF or it won't, there's nothing to say that the WOF won't be due to expire. If the car has a WOF, in that price bracket it usually means more cost (Generally a base-level car without a WOF will be in the $500+ category.

But the rest of it seems fine. It's a sensible way of doing it so long as you don't mind the hassle of selling the thing before you leave.

caziques

2,652 posts

175 months

Wednesday 12th September 2012
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One thing you don't have to worry about is rust, it isn't an issue here.

You don't need insurance, as it only covers hardware and no medical costs it is cheap. Often third party will pay you out if an uninsured driver runs into you - so probably worth it.

The new registered owner of a vehicle does not have to pay any backdated rego - so not something to worry about.

Note rego for diesels is a lot more, and there are Road User Charges to pay as well ( a charge per kilometre) - which is why diesel is so much cheaper.

uncinqsix

3,239 posts

217 months

Wednesday 12th September 2012
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Esprit said:
As for the WOF at point of sale being issued in the last month, while that's a requirement for dealers, it's not for private sellers.... .
It is actuallly. Applies to everyone, but you can legally get out of it with the written agreement of the buyer. Not that anyone pays that rule the slightest bit of attention in practice...

Esprit

6,370 posts

290 months

Wednesday 12th September 2012
quotequote all
uncinqsix said:
It is actuallly. Applies to everyone, but you can legally get out of it with the written agreement of the buyer. Not that anyone pays that rule the slightest bit of attention in practice...
Yeah, that's kinda what I meant.... it's NEVER policed, pretty much every car I've ever bought hasn't been freshly WOF'd

uncinqsix

3,239 posts

217 months

Wednesday 12th September 2012
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Esprit said:
Yeah, that's kinda what I meant.... it's NEVER policed, pretty much every car I've ever bought hasn't been freshly WOF'd
I'm not even sure it can be policed. The computer systems certainly have no way of picking it up.

RCK974X

2,521 posts

156 months

Wednesday 12th September 2012
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Actually rust *CAN* be an issue, but as caziques said, it's not very common. Unlike the UK, we don't salt our roads in winter, so most old cars are fine, but DO check underneath if you can, to make sure. Some seaside areas tend to rot the cars a little quicker.

I guess comparing what UK used to be like before I left 17 years ago, for small cars, Japs here (Mazda) are cheap and not too bad for reliability (Mazdas are like UK small Fords used to be),
and for bigger cars Holden Commodores (GM) can be chaep, and not too bad on gas overall. As always just be cynical when buying. There are conmen here too, although I would say on average NZ private sellers are quite honest. There are quite a few old British cars around too, but they tend to be collectable now, so not cheap.



Edited by RCK974X on Wednesday 12th September 22:18

Atom Johnny

1,072 posts

183 months

Thursday 13th September 2012
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RCK974X said:
Actually rust *CAN* be an issue, but as caziques said, it's not very common. Unlike the UK, we don't salt our roads in winter, so most old cars are fine, but DO check underneath if you can, to make sure. Some seaside areas tend to rot the cars a little quicker.
There is what is termed structural rust in some areas then the car won't get a WOF. No WOF means it can't be registered. No rego or WOF and you can drive it unless you want to fall foul of the law.

Be careful as a car that you buy with a WOF may not get one next time around, so look anything that may be an issue if the warrant is to expire before your 3 months is up.
IMO I would not buy anything without a current WOF or rego, and in your case anything that has either that is going to run out before you leave.

Third party insurance is a must. If you have an accident you won't recover the $1K for your bomb but it will save you having to find $300K for hitting someones Ferrari if the accident is proven to be your fault.

A clue to what you'll get for $1000 -> http://www.trademe.co.nz/Browse/CategoryAttributeS...


mark387mw

2,188 posts

274 months

Thursday 13th September 2012
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Be aware that unlike the 12 month MoT, the WOF comes around every 6 months so get a car with a new WOF and it'll still have 3 months to run when you sell. Perhaps consider a $2000 - $3000 car and sell it at say a $500 loss through a Christchurch PH'er when you have left.

I'd say get insurance, not too costly versus a claim or loss against you.

This car has a new WOF and taking offers http://www.trademe.co.nz/motors/used-cars/subaru/l...
and there are plenty of other cars for sale from all those moving to Oz!

generic username

Original Poster:

3 posts

146 months

Thursday 13th September 2012
quotequote all
Fantastic response, exactly what I was after - thank you all very much indeed.

Fortunately there'll be another chap coming out to replace me when I leave, so selling the car on shouldn't be too much trouble.

So what's the process of buying from a private seller like? Turn up and have a look, agree terms, go away to sort things out with NZTA and come back a day or so later with an acquisition receipt?

Atom Johnny

1,072 posts

183 months

Thursday 13th September 2012
quotequote all
generic username said:
So what's the process of buying from a private seller like? Turn up and have a look, agree terms, go away to sort things out with NZTA and come back a day or so later with an acquisition receipt?
Pretty much although you can do the change of ownership forms immediately at any NZTA agent during normal trading hours. These agents include any Post Shop, AA Office and most of the VINZ or VTNZ testing stations that perform the WOF check.

uncinqsix

3,239 posts

217 months

Thursday 13th September 2012
quotequote all
Atom Johnny said:
generic username said:
So what's the process of buying from a private seller like? Turn up and have a look, agree terms, go away to sort things out with NZTA and come back a day or so later with an acquisition receipt?
Pretty much although you can do the change of ownership forms immediately at any NZTA agent during normal trading hours. These agents include any Post Shop, AA Office and most of the VINZ or VTNZ testing stations that perform the WOF check.
Or you can sit down at a computer and do it online there and then: http://www.nzta.govt.nz/transact/index.html

Bull1t

772 posts

290 months

Friday 14th September 2012
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uncinqsix said:
Or you can sit down at a computer and do it online there and then: http://www.nzta.govt.nz/transact/index.html
The last couple Ive sold Ive brought my laptop to my garage and sorted it while we were both there. Last two Ive bought site unseen so did the changeover online before I left home and emailed the confirmation to them. Really simple and quicker than posting forms off.

RCK974X

2,521 posts

156 months

Friday 14th September 2012
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Yeah, I agree with Mark, perhaps spend a bit more if you can, and get a newly WOFfed car with 5 or 6 months, and then chances are you won't have any expensive problems....and then pass it on at about break even.

NB> if you see anything about weird 'give way' rules, NZ has changed back to exactly the same as UK this year, so no worries there.

caziques

2,652 posts

175 months

Saturday 15th September 2012
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I would also suggest getting an NZ diving licence while your here - valid for ten years, very useful when driving anywhere but the UK and NZ.

Caterhamfan

317 posts

177 months

Saturday 15th September 2012
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caziques said:
I would also suggest getting an NZ diving licence while your here - valid for ten years, very useful when driving anywhere but the UK and NZ.
I don't think that's quite what you meant wink

EFA

Edited by Caterhamfan on Monday 17th September 02:23

lestag

4,614 posts

283 months

Sunday 16th September 2012
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generic username said:
Fantastic response, exactly what I was after - thank you all very much indeed.

Fortunately there'll be another chap coming out to replace me when I leave, so selling the car on shouldn't be too much trouble.

So what's the process of buying from a private seller like? Turn up and have a look, agree terms, go away to sort things out with NZTA and come back a day or so later with an acquisition receipt?
I've met people at the registration agents location and done it there and then. change of ownershp details does not prove ownership,
Be careful if you decide on diesel as that has additinal road user charges (x dollars per 1000kms)

Also look at turners auctions and possibly using teh AA vehicle testing service ($169 ) it has been worth it for me, I walked away from a car, that ended up having a very dodgy repair on it.

Also check that there is no finance owing on anything you buy (thats if it is not from a dealer or turners (or any auction house) )
http://www.ppsr.govt.nz/cms

RobDickinson

31,343 posts

261 months

Monday 17th September 2012
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caziques said:
I would also suggest getting an NZ diving licence while your here - valid for ten years, very useful when driving anywhere but the UK and NZ.
You dont need one for the first 2 years, but its good id I guess, doesnt cost much to get and you dont need to pass any exams (apart from a very basic easy eye exam).

N1CERB

331 posts

207 months

Thursday 20th September 2012
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I thought it was after 12 months?

RobDickinson

31,343 posts

261 months

Thursday 20th September 2012
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