Perhaps you are thinking of buying a car privately.
You scan the newspapers and finally find the car of your dreams (or close to it). If so, before you part with your hard-earned cash, it pays to remember a few simple things to ensure the transaction proceeds smoothly. Otherwise, you could find yourself liable for charges incurred by someone else or, in the worst case, lose your car altogether.
The following are some of the considerations you need to address before buying your car:
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You do this by checking the Personal Property Securities Register ("the PPSR") ON THE DAY YOU ARE GOING TO PAY, to establish whether a 'security interest' is registered. Do not rely on what the seller tells you. It has happened before, that the same day a car is bought, a finance company registers their loan against that very car - don't get caught.
If there is a security interest registered, another person or company may seize your car to pay off the debt. This debt may have been incurred by the previous owner but you may still lose your car if the owner has not repaid the debt in full.
If there is a money owing on the car which is going to be repaid from the sale proceeds, you should be paying this money directly to the firm or bank who is owed the money, not to the seller. That way you can be sure the money gets paid to the right place (and not spent on other things, leaving the car still with a debt on it, that isn't yours).
You will need the Vehicle Identification Number (VIN), chassis and registration (plate) number together with the make, model and year of the car.
Searches of the PPSR cost $3.00 including GST. The PPSR can be found at www.ppsr.govt.nz.
An alternative to the PPSR is to ring Autocheck on 0900 909 777. This service costs $5.00 plus GST. |
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If you buy a car that has been stolen, you will lose your car even though you paid for it.
You can check whether the car you propose to buy has been stolen with either the Police or the Land Transport Safety Authority (LTSA).
Searches at the LTSA cost $2.25 including GST. Last year in New Zealand 136,000 cars were stolen [1].
You can check that the person who is selling you the car is the registered owner by visiting any New Zealand Post Shop and filling out a "Request for Vehicle Information" form.
You will need to provide the car registration number, make and model. You will also need some personal identification (eg drivers licence or passport). The current fee is $2.25 including GST. |
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Check that the car has a Warrant of Fitness that is NO MORE THAN one month old. If a new one is required, the seller will have to pay.
This is a legal requirement unless the car was sold "as is, where is" and you sign a declaration saying you will accept the car without a current Warrant of Fitness. |
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A current Warrant of Fitness does not necessarily mean that the vehicle is in good mechanical condition.
A vehicle inspection service can give the car a check and this is recommended BEFORE you buy it.
Charges for this service vary. A mechanical inspection by the Automobile Association of New Zealand ("the AA") costs $80 for members and $105 for non-members and usually takes approximately 75 minutes. The AA site can be found at www.aa.co.nz |
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Having bought your car, you will need to advise the Land Transport Safety Authority (LTSA) of the change of ownership. Information on the procedure and forms required can be obtained from the LTSA site at
http://www.ltsa.govt.nz/factsheets/41.html
Remember that buying a car privately can expose you to certain risks and your legal remedies are much more limited than if you buy a car from a Licensed Motor Vehicle Dealer (LMVD).
If you buy a car privately you will not be protected by the Consumer Guarantees Act, the Motor Vehicle Dealers Act or the Fair Trading Act.
If something goes wrong in a private sale, your legal remedies are likely to be limited to the Contractual Remedies Act and the Sale of Goods Act.
[1] New Zealand Crime Statistics 2003/2004, Office of the Police Commissioner, August 2004
December 2004
All information in this article is to the best of the author's knowledge true and accurate. No liability is assumed by the author for any losses suffered by any person relying directly or indirectly upon this material. It is recommended that you should consult a senior representative of Rotherhams before acting upon any information provided in this article.
