Buying From a Car Dealer vs. Private Seller in NZ: The Pros & Cons

Heading to a car dealer is a popular choice for many Kiwi. It's a bit like the retail experience of car buying - you get a wide selection, professional service, and a few extra perks.

• You're covered, legally: This is a biggie. When you buy from a registered dealer, you're protected by the Consumer Guarantees Act (CGA) and the Fair Trading Act (FTA). In simple terms, this means the car must be of acceptable quality, fit for purpose, and as described. If you buy a lemon, you have a legal comeback.
• All the info is there: Dealers are legally required to display a Consumer Information Notice (CIN) on every used car. This handy card gives you the lowdown on the vehicle's history, including whether there's money owing on it. No nasty surprises here!
• Peace of mind: Many dealers offer warranties or guarantees, these are essentially insurance policies on your vehicle’s components, and cover may differ but it means the dealer is on the hook if something goes wrong and is covered within the policy terms. Plus, they're experts who can answer all your curly questions.
• Extra services: Dealers often offer a one-stop-shop experience with services like car financing, insurance, and trade-ins, which can make the whole process a bit smoother.

• It can cost more: All that legal protection and convenience usually comes with a higher price tag compared to buying privately.
• The upsell: Dealers may offer add-ons like any extended warranties or paint protection at further cost. These may present good value when it comes to protecting your investment, just remember these are completely optional.

• Do your research: Check out the dealer's reputation online. A quick search for reviews from other customers can tell you a lot.
• Get an independent check: Even with all the legal protections, it's still a smart move to get a pre-purchase inspection from a mechanic, like My Auto Shop. It might cost a couple of hundred dollars, but it could save you thousands in the long run.
• Know your finance: While dealers offer finance, it pays to see what you can get pre-approved from your bank or another lender. This gives you a benchmark and strengthens your negotiating position.
• Negotiate: Don't be shy about negotiating the price. Keep discount expectations realistic, but there's often wiggle room to negotiate. This could be off the price of the vehicle or some of those added extras like extended warranties etc.

Ready to find a reputable dealer near you? Check out our Car Dealer Directory.

Buying privately is a more hands-on experience. You're generally dealing directly with the car's owner, which can be a great way to get a good deal and the inside scoop on the vehicle's history.

• You could save some cash: Generally, you'll find that prices are lower when buying from a private seller, as they don't have the same overheads as a dealership. Their motivations to sell are not always commercial outcomes.
• Straight from the source: You can chat directly with the owner and ask them all about the car's history, how they've used it, and any quirks it might have.
• No sales pressure: It's usually a more relaxed experience without a salesperson trying to meet targets or upsell you on extras.

• Less legal protection: This is the main thing to be aware of. Private sales aren't covered by the Consumer Guarantees Act (CGA) or Fair Trading Act (FTA), so it's a classic "buyer beware" situation. If something goes wrong after you've paid up, it's much harder to sort out.
• It's all on you: You're responsible for doing all the checks and making sure the car is mechanically sound, everything works, and that the vehicle is exactly what it's cracked up to be. This means you're accepting the risk that the vehicle is what the seller says it is, and will be fit for purpose for your needs. You need to be extra vigilant.
• Risk of hidden problems: There's a higher risk of undisclosed issues, like mechanical faults or money owing on the car. Not all sellers are going to be upfront and honest with you, so you need to do extra due diligence when purchasing privately. If you unknowingly buy a car with finance owing, it can even be repossessed from you.

• Do your research: We can't stress this enough. Before you even go see a car, do some online research to check for common problems with that make and model.
• Ask plenty of questions: When you view the car, ask the seller about its service history, any accidents it's been in, and why they're selling it.
• Always get an inspection: Just like with a dealer, a pre-purchase inspection is a must. Don't just rely on a new Warrant of Fitness (WoF) - this only covers safety, not the car's overall mechanical condition.
• Get a background check: A Vehicle Information Report (VIR) is essential when buying privately. It'll tell you if there's money owing, if the odometer reading is consistent, and if the car has been reported stolen.
• Keep records: Make sure you keep a copy of the original advertisement and any written communication with the seller. This could be vital if you find out you've been misled.

Keen to see what's out there? Have a browse through the thousands of cars for sale privately on Trade Me Motors.

No matter where you're buying from, there are a few golden rules that will help you make a smart and confident purchase.

• Know what you need: Think about your lifestyle. How many people will you be carrying? Do you do a lot of city driving or open-road cruising? Do you need a big boot for the dog, the groceries, or the sports gear? Being realistic about your needs will help you narrow down your search.
• Safety first: A car is a big investment, and your safety is priceless. Look up the safety rating of any car you're considering. The Used Car Safety Ratings (UCSR) and Vehicle Safety Risk Ratings (VSRR) are great resources that analyse real-world crash data. You can even filter your search on Trade Me Motors by safety rating.
• Set a budget: It's easy to get carried away when you see a shiny new car. Decide on a realistic budget and stick to it. Remember to factor in ongoing costs like insurance, registration, and potential maintenance.

Once you've found 'the one', you'll need to sort out some admin. It's not the most exciting part, but it's super important.

• Change of ownership: This is a must-do. You and the seller need to notify Waka Kotahi (NZTA) that the car has a new owner. You can complete a change of ownership online. If you're buying from a dealer, they'll usually handle this for you, but it's always good to double-check.

• Car insurance: Don't even think about driving away without it! Arrange car insurance before you pick up the vehicle. That way, you're covered from the get-go.

• Warrant of Fitness (WoF) and Registration (Rego): It's illegal to drive a car without a current WoF and rego. Check the expiry dates on the windscreen stickers. If the rego has been expired for more than 12 months, the car's registration will be cancelled, and it's a bit of a process to get it back on the road.

• Road User Charges (RUC): If you're buying a diesel vehicle, you'll need to pay RUC. Check that the RUC licence is up to date. If it's expired, the seller should sort this out before you buy.