Consumer Guides > Car buyers' rightsCar buyers' rights Content kindly supplied by consumer.org.nz.
There is quite a bit of legal protection for car buyers, but a lot of it is complicated and depends on who you buy from.
Here's our guide to your rights when buying a car.
Buying privately
If you buy privately, you have limited protection. The Consumer Guarantees Act and Fair Trading Act don't apply, although in some circumstances the Contractual Remedies Act does apply. If a private seller misleads you about the car, you can take them to a Disputes Tribunal.
You can take the following steps to protect yourself when buying privately:
check the car has a WOF less than one month old. (If the buyer agrees, private sellers have the option of selling without a warrant less than a month old, provided the buyer gives them a written statement stating that the vehicle won't be used on the road except for taking it for a new WOF inspection.)
use a vehicle history checking service to see if there's money owing on the car.
arrange for a thorough mechanical check of the car. Use a mechanic or a specialist service - see the Yellow pages under "Vehicle Inspection Services".
However, if the motor blows up while you're driving the car home, you'll be very lucky to see your money again.
Buying from a dealer
Under the Motor Vehicle Sales Act (MVSA) all car dealers must be registered.
Any person who holds themselves out as being in the business of motor vehicle trading, or who sells more than six vehicles or imports more than three vehicles within a twelve-month period, is considered under the law to be a motor vehicle trader and must be registered (unless they can show the sales or importations were not done for gain). This includes car fairs, car consultants, car auctioneers, and online car sales services.
Dealers who trade without being registered face a maximum fine of $50,000 for an individual or $200,000 for a company.
You can check if a dealer is registered or banned at the Motor Vehicle Traders Register website or by phoning 0508 668 678.
A registered motor vehicle trader will guarantee consumers "good title" to a car. This means they can legally sell the car and you will not be liable for any debts hanging over it, unless those debts were specifically pointed out to you in writing. This protection does not apply if you buy privately.
Every vehicle sold by a trader must have a warrant of fitness less than one month old.
Supplier Information Notice
A dealer is required to attach to every motor vehicle displayed for sale a "supplier information notice" (SIN).
The information that must be disclosed in the SIN includes:
The name and business address of the dealer.
Whether the dealer is a registered motor vehicle trader.
The cash price of the vehicle, including all costs payable in order for you to drive it away.
Whether any security interest is registered over the vehicle.
The year in which the vehicle was manufactured (or the manufacturer's designated "model year").
The make, model, engine capacity and fuel type of the vehicle.
The year in which the vehicle was first registered in New Zealand, or, if the vehicle was first registered overseas, the year of that first registration.
The odometer (distance travelled) reading, or a statement that the the odometer reading is or may be inaccurate.
Whether the vehicle is recorded on the motor vehicle register as having been damaged when it was imported.
Warrant of fitness details.
If you buy the car, you must be given a copy of the SIN.
If a vehicle is displayed without a SIN, or the information on the SIN is misleading, you can complain to the Commerce Commission. The commission can prosecute for breaches of the Fair Trading Act. If you buy the vehicle and then discover you were misled you may be able to take action yourself under the Fair Trading Act.
If things go wrong
Your first step is to discuss the problem with the trader. If they won't help, you have two options: to take a case to the specialist Motor Vehicle Disputes Tribunal (MVDT), or use a regular Disputes Tribunal.
For more information, see the full consumer.org.nz reports on Car buyers' rights (including the Motor Vehicles Disputes Tribunal) and regular Disputes Tribunals.
To contact the Motor Vehicle Disputes Tribunal:
Ring them on 0800 367 6838
or write to them at PO Box 6848, Wellesley Street, Auckland.
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This guide is brought to you by consumer.org.nz. Last reviewed Apr 2010.
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