For many of us a set of wheels is essential. We tackle the big questions concerning buying and owning a car, so you can avoid buying a lemon.
Choose a good make and model
Choose a more reliable model with highly satisfied owners. Don’t take the dealer’s word for it – search our database of 20 makes and 72 models and tap into the experience of the owners of 8527 cars.
New or used?
Buying new has advantages: you get top-notch safety, modern equipment, a peace-of-mind warranty and low upkeep costs. But it comes at a cost, depreciating thousands of dollars the instant you take ownership.
Buying nearly new or used saves a tonne of depreciation and you still get most of the new-car benefits. Going older can save even more, but comes with increased risk.
Depreciation
When you’re working out how affordable your new car is, looking at loan payments and running costs, it’s easy to overlook the substantial loss you’ll make when you sell it on.
Find out how car depreciation works and how to minimise it.
Check the paperwork
The car itself is only half the story. You need to check the paperwork for any used car, to make sure it’s the car you think it is.
With any loan offer, check the time to repay, the monthly payments and the total cost over the term of the loan. If the dealer offers an interest-free loan, check there aren’t any hidden fees and that the asking price of the car hasn’t been inflated to cover it.
If your new wheels replace an existing car, think about what to do with the old one: sell it to maximise financial gain or trade it in with minimal effort?
Finance
Like any finance deal, the devil can be in the detail. There is usually a slew of fees when buying a car on finance and you’ll still pay hundreds in interest. If you can afford it, paying in cash is your best option.
Many big car brands have their own finance arms. Other dealers usually offer loans through finance companies such as Marac, MTF Finance or UDC.
Find out more about car finance deals, add-ons and how to avoid debt traps.
Safety
The best advice when buying a car is to choose the safest model you can within your budget. It’s about shifting your mindset from looking at leather seats or sunroofs to focusing in on the safety rating which indicates the level of protection provided to you and your passengers if things go wrong.
Check out our guide to safety ratings and making the safest choice within your price range.
Buying used
Research the make and model
Google is your friend. Search for MAKE MODEL YEAR and “problems”. Every car will have someone crying foul about it on internet forums and it’s easy to disappear down a rabbit hole of worry. But be realistic and you may turn up some known problems that’ll steer you away from a car, or at least warn you what to look for, like ongoing problems with 2010-2014 Ford Fiesta Powershift gearboxes, or the generally poor reliability of pre-2010 Mini Coopers.
Be realistic
We keep our cars going for longer than in most countries, our fleet averages over 14 years old and the average used import is 12 years old at the time of import. These are cars well into their twilight years.
With an older vehicle, you need to expect repair bills for wear and tear and accept minor failures and niggles. However, it isn’t reasonable to expect a major failure soon after purchase.
Find a good example
Look at how the car is presented – is it clean and tidy? Ask if it’s been serviced before sale and if there are any faults you should know about. Get copies of any inspection or service reports. If the car has had previous New Zealand owners, ask for service and maintenance records that show it’s been looked after.
Get it serviced
If the car is freshly imported, or has no documented service history, assume the worst.
A pre-purchase inspection costs about $100 and will show immediate problems, but won’t tell you about future failures. If the car hasn’t been recently serviced, you could negotiate an immediate service as part of the deal. Otherwise, set aside some of your budget to get your wheels serviced immediately after purchase and tell the mechanic you want to know if there are signs of neglected maintenance or future trouble. You might find something that can be fixed before it becomes a problem, and you can use the report as evidence to take to the dealer to highlight any faults present when it was sold, which you can claim for under the CGA.
Don’t fear private sales
Buying a car privately can be daunting, but don’t be put off. A private seller has the advantage of knowing some of the car’s history. They may have records showing servicing and repair going back a few years, or even from new.
If you’re looking for a cheaper car, $10,000 or less, you’ll find more options from private sellers. The sale may be more straightforward too – sellers won’t be interested in upselling mechanical insurance or adding on other extras.
However, in a private sale you have no CGA protection if the car goes wrong, so arm yourself with our checklist and advice. Private sales are usually on an “as-is, where-is” basis, which means the buyer takes responsibility for any problems after purchase. You can insist that the car you’re buying has a WoF less than one month old, which helps protect you against faults that have developed since the last inspection.
Inspect and test drive
So, you don’t have as many protections but, with care, buying privately might just turn up a great car without the dealer price premium.
So you think you’ve found a good car? If possible, view and drive it before purchase using our used car checklist as a guide. Take someone with you to help.
For about $120, paying a specialist inspection service or a mechanic to do a detailed mechanical inspection is a good idea, especially if your test drive highlights possible problems.
When it goes wrong
Know your rights. You have protection through the Fair Trading Act and Consumer Guarantees Act.
Even following the best advice doesn’t guarantee you’ll get a sweet ride. Our guide to your rights when buying a car will help if your dealer or private purchase goes wrong.
Act quickly. Don’t wait months after noticing the problem or you may lose your rights. Get an independent mechanic to confirm the fault.
Contact the dealer. Present your case and tell them what solution you expect.
Go to a tribunal. The Motor Vehicle Disputes Tribunal (MVDT) provides independent dispute resolution. It’s a last resort, but costs just $50. Mentioning the MVDT can be enough to convince a dealer to act.
Consumer members can contact our Advice Line for help at any stage.
