What to check when buying a used car in New Zealand?

Considering a used car? Buying a used car is often the most cost-effective option compared to buying a new one. In New Zealand, approximately 40-46% of people opt for used or imported vehicles. However, before making a purchase, there are some key factors to consider, such as hidden faults and finding a trustworthy seller. These will ensure a hassle-free, long-term investment and help you avoid costly repairs and common pitfalls. Today, we will discuss these important considerations to help you make smart decisions.

Set a budget

The first step is to set your budget. Assess your financial status, determine the type of vehicle you need, whether you’re buying for daily work or weekend travelling, and make sure to check the parking space. By including potential repair costs in your budget, you’ll be better prepared to address any minor issues with the vehicle.

Inspect the condition

When analyzing the overall condition of a car, be sure to check the tyres, look for any rust, dents, or scratches, and check for signs of repainting. Rust is quite common in New Zealand, so avoid purchasing a car if it shows serious rust damage. Additionally, note any uneven panel gaps, as they may indicate previous accidents. A poor exterior condition can reflect a lack of maintenance, so it’s best to avoid vehicles that appear to be in such condition.

Examine the engine and mechanical parts

Carefully inspect the engine under the bonnet for condition. Look for oil leaks, listen for engine noise, and check fluid levels for cleanliness and adequacy. Verify the timing belt history and assess battery condition to prevent mechanical faults and expensive fixes in the future.

Check the interior and electronics

Check the air conditioning and heating systems to ensure they are functioning properly, as well as the window locks, infotainment system, interior wear, and odometer reading.

Take a test drive

Test drives are essential for identifying any potential problems with a vehicle. If possible, take the car on hilly and rough roads to assess the suspension. Check the brakes and steering for smoothness; for example, if the car stops in a straight line without screeching, it means the brakes are working perfectly, and no brake pads or linings are needed. Pay close attention to any unusual noises, especially when starting or stopping the car.

Watch for red flags

If you notice that the seller is rushing to make a sale, it can be a red flag and should not be taken lightly, as there may be hidden issues with the vehicle. Don’t ignore warning signs, such as indicators on the dashboard, mismatched paint, and check for flood and fire signs, and ensure you check the service history of the car.

If the price seems too good to be true, there is likely some hidden problem with the vehicle. It’s important to take these red flags seriously.

Check papers

Verify the vehicle’s legal ownership and documents. Don’t forget to check these documents:

• Registration documents and VIN: You must confirm that the vehicle identification number (VIN) or chassis number on the chassis matches the documentation and online report. And verify that the car is legally registered in New Zealand records.
• Warrant of fitness (WOF):Verify that the car has a current warrant of fitness that is less than one month old. If the WOF is more than one month old, you can still buy the car, but you must provide the owner with a written agreement stating that you’ll only drive the car to get a WOF.

Check the vehicle history

Checking a vehicle’s history is most important for ensuring peace of mind and making a worthwhile purchase. Once you’ve passed the vehicle through inspection and test drives and you’re happy to buy, it’s essential to verify its history. There are several online resources available, including CarJam, MoneyWeb, AA, NZTA, and more. These websites allow you to check important details,m such as outstanding money owed, the vehicle’s history, odometer readings, and NZTA data, including registration status, WOF expiry, and license information. For instance, when using Carjam, you need to enter the plate number, VIN, or chassis number to receive a vehicle report. This report includes checks of stolen vehicles, basic reports, and details about any sales agreement, and it’s offered free of charge.

If you require a full report, it generally costs around $13.95 for complete NZ vehicle information. A PPSR search costs around $1.95, and prices vary for valuation or information on vehicles from the US or Japan, as well as other imported vehicles. Spending a few dollars on these checks is a wise decision rather than facing serious issues later or dealing with a vehicle that may have a hidden issue.

Negotiation and purchase

Once everything is complete and you’re satisfied with the car’s history and everything is up to date, then the final step is negotiation. Show your negotiation skills to buy a vehicle. If the vehicle owner doesn’t have maintenance records or if the vehicle needs minor repairs, you can bring these points up during the negotiation. This can help you make a purchase that fits within your budget.

Note: After buying a vehicle, make sure to transfer its ownership under your name.