Car Buyer's Guide - 9 Steps to buying a great used car
- Determine your needs & wants
- Know your budget
- Do some research
- Go for a test drive
- Check the car history & legal status
- Get a full mechanical check
- Arrange for payment
- Change the ownership
- Protect your investment
1. Determine your actual needs and wants
Don't buy for emotional reasons! Work out exactly what you need this vehicle for.
Do you regularly transport children, pets, work equipment, tow a trailer, go on long trips or drive mostly around town?
Consider the car's body style, transmission type (automatic or manual), fuel consumption, engine size, safety and comfort features that might best suit your needs, then make a "must have" and a "nice to have" list.
2. Know your budget
Work out how much you can afford or want to spend and "stick to your budget."
If you already own a car, find out what it will be worth when you sell or trade it in as it is the final changeover cost you need to budget for.
If you are getting finance don't be talked into spending more than you can afford to repay - actual interest rates can be very high. Shop around for the best finance deal before you shop for a car.
Note: Read documents carefully. Don't sign anything that you don't understand or don't agree with. If in doubt get a second opinion.
3. Do some research on the vehicles that suit your needs
Start comparing vehicles that interest you, to get an understanding for what your money will buy.
Try to compare cars of similar quality rather than just comparing prices - an inferior quality car could have legal or mechanical problems that will quickly cost you more money.
Note: Registered Motor Vehicle Traders operate under strict guidelines, but if you buy privately you may have no comeback if a problem occurs so take your time - choose carefully.
4. Choose the best prospects and go for a test drive
Select the best cars that match your needs and budget.
Sit in the driver's seat - check if it's comfortable and easy to adjust, with enough leg-room. Are the gauges readable and the controls within reach?
Is there enough back and neck support and can you adjust the steering wheel to a good position? Check for good visibility at the front, rear and sides. Adjust the driving position and mirrors correctly before you start driving. Take a look around the interior, exterior and tyres to make sure there are no obvious problems.
Check the vehicle has a current Registration label (Rego) and a Warrant of Fitness (WoF), both of these are located on the inside of the front windscreen.
Driving a car without a current WoF may be dangerous and you could be fined. Also check the car is insured, if not you might be liable for damage if you have an accident.
Do you like the way it drives? Is it comfortable and suitable for the purposes intended? Note anything that concerns you.
Remember, at this stage you are checking if this car suits your needs, not its mechanical condition. That is best done by a professional vehicle inspector such as VTNZ staff.
Note: Registered Motor Vehicle Traders operate under strict guidelines, however if you buy privately you may have no comeback if a problem occurs so take your time - choose carefully.
Look over any available paperwork, including Certificate of Registration, service or repair receipts, window card, past legal checks.
5. Check the history and legal status with a Vehicle Information Report
The Vehicle Information Report™ (VIR™) will check the history and legal status of the vehicle. Even with expert car knowledge this is the one important check you can't do yourself. It gives you peace of mind by telling you:
- If the seller is the registered owner
- If the vehicle is stolen
- If there is money owing (if so the vehicle can be repossessed)
- If MAF have flagged the vehicle as being a flood damaged import or having a wound back or tampered with odometer
- If there are outstanding Road User Charges
- The vehicles fuel economy ratings
- Plus a lot more
Any problems are identified for you to discuss with the seller. You can get a VIR over the internet or by phone (see back panel). All you need is the car's registration plate number. The VIR is an important legal document that you should keep with the rest of the vehicle's documentation.
Buy a Vehicle Information Report Now!
6. Get a full mechanical check
Arrange a full mechanical check from a reputable organisation, such as VTNZ.
They can find issues you won't easily detect yourself. They can identify serious problems with the transmission, cooling system, exhaust, brakes, shock absorbers and engine (e.g. a cambelt can snap without warning, so it should be replaced around every 100,000 kms).
Tell the inspector about any concerns from the test drive so they can investigate further. Don't let minor faults put you off an otherwise sound vehicle, but if a fault is serious you should rethink your choice, or offer an adjusted price to allow for repair.
Note: Present your VIR at VTNZ for a discount on their pre-purchase mechanical inspection. For your nearest VTNZ offering this service phone 0800 88 88 69.
7. Arrange for payment and a receipt
Negotiate a final price and arrange payment.
Make sure you receive a detailed receipt showing both parties' names, signatures, the price, payment method, vehicle description and the date. It should state that no other party has a claim on the car or its accessories (validate this with the VIR). If the car has personalised plates the receipt should also state if these are included in the sale.
8. Change the ownership
You as the buyer must complete an MR13B form and take it to a New Zealand Transport Agency agent for processing.
The seller needs to complete an MR13A form. These are available from any New Zealand Transport Agency agent e.g. VTNZ. You'll need to show the agent your NZ driver licence or other ID that proves your full name, signature and date of birth.
Note: You must complete these forms within seven days but it's best to do it straight away - it prevents both you and the seller becoming liable for the other's fees, charges or traffic fines. Your new Certificate of Registration should arrive within 10 days. Keep it safe with the rest of the vehicle's documents.
9. Protect your investment
Arrange insurance as soon as possible.
If the car does not have an alarm or engine immobiliser, consider fitting one as an effective anti-theft measure (these also often reduce your premium).
If this is your first car or you are new to New Zealand, we strongly recommend taking a defensive driving course. It will help you and your new car stay safe and accident-free. Drive with courtesy and enjoy your new vehicle!
