Before buying a used car

Tips for buying a used car, what to check for and how to protect yourself from common problems.

What to check before buying a used car

Buying a second hand car is another option consumers can consider when purchasing a car. Use these tips and resources when you view, test drive and inspect a car before you buy it.

Use this checklist with steps to follow when buying a used car.

Download guide: Pre-purchase checklist before buying a used car [PDF, 394 KB]

Pre-purchase checklist

1. Work out your priorities

What do you really need?

Compare makes and models
- Check online car reviews and forums
Check safety and environmental ratings
- rightcar.govt.nz(external link)
Understand the difference between buying a car privately and buying from a dealer (buying privately gives you very few rights)

2. Check your finances

How much do you want to spend?

Look at how much money you have coming in and going out
- sorted.org.nz(external link)
Estimate the total cost of a car including running costs
If you get a loan, shop for the best interest rates and get pre-approval from a lender

3. View and test cars

Does it look and feel right?

Check important documents
- Consumer Information Notice (CIN)
- service receipts
- current warrant of fitness (WoF)
- current licence (rego)
Do basic checks
Ask about previous water damage
For used EVs, get a battery state of health (SOH) test, and check the charging cable meets safety and compatibility standards
Take it for a test drive

4. Call in the experts

Does everything stack up?

Identify hidden problems
- major damage – check written off or damaged vehicles https://www.nzta.govt.nz/vehicles/choosing-the-right-vehicle/recalls-and-damaged-vehicles/written-off-and-damaged-vehicles/(external link)
- signs of water damage – check what you need to know Water damaged vehicles – what you need to know | Waka Kotahi NZ Transport Agency (nzta.govt.nz)(external link)
- money still owing — check the Personal Property Securities Register(external link)
- registered as stolen
- inconsistent odometer readings
- find vehicle history report provider
Get the car inspected
- find pre-purchase vehicle inspection provider

5. Before you sign on the dotted line

Are you getting the best deal?

Be wary of any offers too good to be true
Calculate car’s true cost if you borrow
- sorted.org.nz(external link)
Make sure any add-ons, eg extended warranties and accessories, are worth it
Read any contracts or agreements carefully

6. Let’s go

How can you get on the road?

Let Waka Kotahi NZ Transport Agency know you bought a car
- nzta.govt.nz(external link)
Safeguard yourself with insurance
Stay road worthy with regular servicing and current WoF and licence (rego)
Save sales documents and service receipts, CIN notices and all other related paperwork to avoid problems

Protect yourself from common problems

Here are some additional elements to check – and risks to be aware of when buying a used car:

The Consumer Information Notice (CIN)

A Consumer Information Notice (CIN) provides information about a used motor vehicle’s history. It includes:

details about the seller
Information on previous owners including if there is any money owing on the car
details about whether or not the car was imported as damaged vehicle
the total price to get the vehicle on the road

Motor vehicle traders must attach an accurate and reliable Consumer Information Notice (CIN) to any second-hand vehicle, where the transaction takes place. They also have to provide you with a copy of the CIN, and ask you to sign it when you buy a used vehicle.

If you have problems with the vehicle later on, the CIN provides evidence of the details you received when you bought the vehicle.

Private car sales don’t need a CIN.

Visual guide: What’s most important to check on a CIN

Money owing on the car

If there is money owing on a vehicle you purchase then you risk losing it – whether or not the security interest is disclosed. A security interest is the right a finance company has to repossess a borrower’s belongings, eg their car, if the borrower does not pay back their loan.

So, before you buy a car, make sure you check if there is any money owing on it.

You can find out if there is a valid security interest registered on the vehicle by using the PPSR mobile-friendly search.

PPSR mobile-friendly search(external link) – Personal Property Securities Register

Buying 'As is where is'

If the used vehicle you want to buy is being sold ‘as is, where is’, the seller might not have checked the car’s quality.

Ask if there are any defects and be thorough with pre-purchase inspections. Buying a car ‘as is, where is’ from a private seller can leave you with fewer legal protections, because people selling privately don’t have to comply with the Consumer Guarantees Act (CGA) or Fair Trading Act (FTA).

Motor vehicle traders, e.g. car dealers are required to comply with these. A dealer can’t use ‘as is, where is’ to opt out of their obligations to you.

Buying a car 'Sight unseen'

On this page

What to check before buying a used car

Pre-purchase checklist

1. Work out your priorities

2. Check your finances

3. View and test cars

4. Call in the experts

5. Before you sign on the dotted line

6. Let’s go

Protect yourself from common problems

Related pages you might find useful

Pre-purchase inspections and checks

Paying for, registering and insuring your car

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