For many Kiwis, a car is less a want-to-have than a need-to-have. After your home, a vehicle might be the second-most expensive thing you ever buy, so if you're thinking of buying a car, you need to do it the right way.
Here's how. 

Determine Your Needs and Budget

Don't ask yourself what car you want. Ask yourself what car you need. How much storage space? How many seats? What is the safety rating? Is it a work car? How big is your garage? Do you enjoy four-wheel driving?

Once you have an idea of what your perfect vehicle looks like, set a budget. Work within your means. If you don't have money set aside, consider taking out a car loan. At Instant Finance we can help you set your budget by outlining your borrowing capacity.

Remember that a car costs more than the purchase price: between fuel, registration & WOF, insurance, maintenance and more, ongoing vehicle costs can be significant, so you need to factor these into your budget.

Researching and Finding a Car

It's time to find your new set of wheels. Research your options based on your needs, and try to narrow your choice down to a few models.

Buying new is safer than buying used, but used cars can be far cheaper - you just have to be more careful with private purchases. There are two main ways to buy a used vehicle:

Buy a vehicle from a car dealer

The Consumer Guarantee Act (CGA) ensures dealer cars must be of acceptable quality. Car dealers may also offer a limited warranty on used car purchases for extra peace of mind.

At Instant Finance we actually have our very own car yard, Easy Driver, where we keep a rolling stock of 100 or so of high-quality used vehicles. We’ve got something for everybody and every budget!

Buy a vehicle from a private seller

A lack of warranty means it can be cheaper to buy privately (if you're careful). Browse a car sales site like Trade Me to find private options.

Checking the Car's Condition

It's wise to get a pre-purchase inspection conducted on any potential used car purchase, particularly from private sellers. These checks can reveal any issues, mechanical or otherwise before you commit to the purchase.

Check the car's history in the log book. Ask about past owners and where the car was driven. Always take the car for a test drive to check that it runs as expected.

It's also wise to check for issues with the car on the New Zealand Police database and the Personal Property Securities Register (PPSR) website which tells you if there is money owed on the motor vehicle.

Completing the Purchase

If the car passes muster on all the vehicle checks above, and you agree on a good deal with the seller, you're ready to complete the purchase.

Once the money is transferred you need to complete a free ‘change of ownership’ form, which you can do online or at your local New Zealand Transport Agency (NZTA) Agent.
No matter whether you buy from a dealer or private seller, it's wise to get a purchase receipt that logs the transaction and that is signed by both parties, to cover you if something were to go wrong. Ensure the following information is included:

  • Details on the car
  • The agreed purchase price
  • The purchase date
  • The name and address of both you and the seller

Car buying tips

Read the paperwork closely

Carefully comb over the results of the pre-purchase inspection and speak to the inspector about it. Work out exactly what a warranty covers. Double-check the change of ownership forms and receipt before finalising the transaction.

Ask the seller key questions

Why are you selling? How have you used the car? Has it been in any accidents? Have there been any major mechanical faults? How new are the tyres?

Pay fair value

Use a tool like Car Price to find out the market value of the car, to ensure you're not overpaying. Compare it to the price of similar cars in your area. Factor in the age, odometer reading, and any additions or recent work that has been done to the vehicle.

Stay within budget

Avoid being tempted by a dream car with an asking price outside your range, even if it's only a little above your budget. You should always prioritise your needs over your wants, and staying within budget is perhaps the biggest need of all.

Secure your dream car today

In need of a car loan? At Instant Finance we've spent over 50 years providing Kiwis with the funds they need to buy their perfect set of wheels.

Apply online today to secure a car loan that works for you.

FAQs

Is it expensive to own a car in New Zealand?

The purchase price of your car only ever tells part of the story. The ongoing costs - fuel, licensing and rego, Warrant of Fitness (WoF), maintenance, car insurance, cleaning and parking - generally add up to a few thousand dollars a year. Whether that's expensive will depend on your definition!

Is it worth buying a new car in NZ?

The higher upfront cost of a new car can certainly be worthwhile, as (often extended) warranties give you ultimate peace of mind. That said, you can get far better value in a used car. Ultimately the answer to this question is up to you.

How to finance a car in NZ?

There are a few different ways to finance a car in NZ, including purpose-built car loans.

Get all the details in our car financing guide, which covers everything from interest rates to credit scores to monthly payment plans.

 

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