Buying a used car: checks, change of ownership and your rights

Consumer Protection (MBIE) / Motor Vehicle Disputes Tribunal (Ministry of Justice) / NZ Transport Agency Waka KotahiVerified 14 Oct 2026Official pages checked daily

When you buy a used car in New Zealand, the most important question is who you buy from. If you buy from a dealer, you are protected by the Consumer Guarantees Act (CGA) and other laws. If something goes wrong, the dealer must fix, replace or refund. If you cannot agree, you can go to the Motor Vehicle Disputes Tribunal. If you buy from a private seller, you have almost none of these protections. Before you buy, always check for money owing and whether the car is stolen, and have it inspected. After the sale, both the buyer and the seller must tell NZ Transport Agency Waka Kotahi (NZTA) about the change of ownership as soon as possible. Do this within 7 days if you can.

Key facts

Buying from a private seller: A private seller does not need to be registered, does not need to display a CIN, and does not have to follow the Consumer Guarantees Act (CGA) or the Fair Trading Act (FTA)¹
Rights you may still have after a private sale: The seller gave you false information to get you to buy; the car had money owing and was repossessed by a finance company; the seller had no right to sell the car; the seller should really have been registered as a trader¹
Who must register as a motor vehicle trader: Anyone in the business of selling cars, or anyone who sells more than 6 cars, or imports more than 3 cars, in 12 months¹
What dealers must do: Follow the CGA and FTA; register and follow the Motor Vehicle Sales Act; display an accurate CIN (Consumer Information Notice) on used cars²
CGA guarantees for cars sold by dealers: Acceptable quality (reasonable appearance and finish, durable, safe), fit for purpose, and as described²
Does 'as is, where is' mean anything?: A dealer cannot use the words 'as is, where is' to avoid its duties under the CGA. But if the dealer clearly pointed out a specific fault before you bought the car, you cannot complain about that fault later²
Is there a fixed time limit to return a car?: There is no fixed time limit (for example, 'within one month'). It depends on the car's age, model, price, condition at the time, and whether the problem is normal wear and tear. If you want to reject the car, you must tell the dealer within a reasonable time²
Minor fault vs serious fault: Minor fault: the dealer must fix it within a reasonable time. If they do not, you can get it fixed elsewhere and claim the cost from the dealer, or return or replace the car. Serious fault (it cannot be fixed, or the repair cost is out of proportion to the car's value): you can return the car for a refund or get a similar replacement, or keep the car and claim for the drop in value²
Money owing information on the CIN: Check whether the 'security interest' box on the CIN is ticked. If the information about money owing is wrong (for example, the box is not ticked), the security interest is not valid and the finance company cannot take the car from you²
Notice of change of ownership: After a used car is bought or sold, both the buyer and the seller must tell NZTA about the change of owner. Do this within 7 days to avoid a fine³
After the transfer: When the transfer or registration is complete, you will receive a Certificate of Registration in your name. Keep it safe³
What the Motor Vehicle Disputes Tribunal covers: Only disputes about cars bought from a registered trader (or a trader who should have been registered but was not), under the CGA or FTA. Disputes about private sales go to the Disputes Tribunal⁴
Motor Vehicle Disputes Tribunal money and weight limits: It can deal with disputes up to NZ$100,000 (higher if both sides agree in writing). It only covers vehicles with a gross weight mass under 3,500 kg⁴
Motor Vehicle Disputes Tribunal application fee: NZ$89. It is not refundable and cannot be waived⁵
If you want to return the car before applying: First tell the dealer in writing that you reject the car and why. Attach this rejection letter to your application⁵

Who is this for, and what are the requirements?

Individual consumers buying a used car in New Zealand
If you buy from a dealer (including online sales, car yards and auctions), the CGA protects you whether you pay cash, use a loan or lease the car. The CGA does not protect you if you buy the car for business and the dealer excluded the CGA in the contract, or if you buy the car to resell it
If you buy from a private seller, the CGA does not apply. You only have limited rights, for example if you were misled or the seller had no right to sell the car

How do I do it? Steps and process

Decide: dealer or private seller
A car from a private seller may be cheaper, but if something goes wrong you will mostly have to deal with it yourself. A car from a dealer is covered by the CGA. If there is a problem, you can go back to the dealer, and you can apply to the Motor Vehicle Disputes Tribunal.
Look at the car, test drive it and check the papers
Always see the car yourself and take it for a test drive. For a dealer car, read the CIN (the information card on the car window). Ask for the service history. Check that the WoF and rego are current. Note: a current WoF does not mean the car is in good mechanical condition.
Check for money owing and whether it is stolen
Use the Personal Property Securities Register (PPSR) to check if there is money owing on the car (there is also a text service, TXTB4UBUY). Use the plate number or VIN on the NZ Police website to check if the car is listed as stolen.
Get the car inspected by a professional
Before you buy, ask a mechanic or a professional pre-purchase inspection service to check the car, especially for a private sale. You can also buy a vehicle history report to check whether the odometer readings are inconsistent (a sign it has been wound back).
Pay and keep evidence
For a private sale, you can write your own sale and purchase agreement. Keep the agreement, a screenshot of the original advert, your messages and all documents. If you buy a private car on a site like Trade Me, it is best to complete the deal through the site, so you can leave feedback or report problems.
Buyer and seller both tell NZTA about the change of ownership
After the sale, both the buyer and the seller must tell NZTA about the change of registered person. You can do this on the spot using NZTA online services. Please do it within 7 days. You will then receive a new Certificate of Registration.
If something goes wrong (dealer)
Contact the dealer (and the warranty company) first. Do not fix the car yourself first. Bring your proof of purchase, the advert, the contract, inspection reports and photos. If the dealer will not help, you can ask MTA to mediate (if the dealer is a member), or apply to the Motor Vehicle Disputes Tribunal (online or at a court counter, fee NZ$89). You can also report the dealer to the Motor Vehicle Traders Register or the Commerce Commission.
If something goes wrong (private seller)
If the seller misled you, the car was repossessed because of money owing, or the seller was really an unregistered trader, you can try to negotiate or apply to the Disputes Tribunal.

What documents do I need?

Proof of identity (driver licence or passport, for the change of ownership)
Sale and purchase agreement or invoice
Copy of the dealer's CIN (the dealer will ask you to sign it)
Screenshot of the original advert, and message or email records
Pre-purchase inspection report, repair invoices and photos (evidence if there is a problem)

What should I watch out for?

Watch out for 'fake private sellers'. If someone says they are selling for a family member, or has several cars listed online at once, they may be a trader pretending to be a private seller to avoid the CGA. You can search the seller's name on the Motor Vehicle Traders Register.
If you pay the money to a dealer, it usually counts as a dealer sale and the CGA protects you, even if the dealer says they are selling it for a private person.
If you bought the car with a loan and something goes wrong, do not stop your repayments, or the car may be repossessed. If the dealer arranged the loan, the finance company is also responsible under the CGA.
Be careful if the seller insists on meeting in a car park or on the street. It is better to see the car at the seller's home or workplace. Take a friend, and tell someone where you are going.
This page only summarises public information and is not legal advice. For a specific dispute, check the Consumer Protection and Ministry of Justice websites.

Common questions

What is the difference between buying a used car from a dealer and from a private seller in NZ?

A dealer must follow the Consumer Guarantees Act (CGA) and the Fair Trading Act (FTA), but a private seller does not. Dealers must also register, follow the Motor Vehicle Sales Act and display an accurate CIN on used cars. If a dealer car has a problem, the dealer must fix, replace or refund, and you can apply to the Motor Vehicle Disputes Tribunal. With a private seller, you have only limited rights.

How do I check if a used car has money owing on it or is stolen?

Use the Personal Property Securities Register (PPSR) to check for money owing. There is also a text service, TXTB4UBUY. To check if the car is listed as stolen, enter the plate number or VIN on the NZ Police website. For a dealer car, also check whether the 'security interest' box on the CIN is ticked.

How do I transfer ownership of a used car? Do both the buyer and seller need to do it?

Yes, both the buyer and the seller must tell NZTA about the change of ownership. You can do this on the spot using NZTA online services. Do it within 7 days to avoid a fine. You need proof of identity, such as a driver licence or passport. When the transfer is complete, you will receive a Certificate of Registration in your name. Keep it safe.

The dealer says the car is sold 'as is, where is'. Is that legal?

A dealer cannot use the words 'as is, where is' to avoid its duties under the Consumer Guarantees Act (CGA). The car must still be of acceptable quality, fit for purpose and as described. However, if the dealer clearly pointed out a specific fault before you bought the car, you cannot complain about that fault later.

My car from a dealer broke down after a few weeks. Can I return it?

You may be able to, but there is no fixed time limit. It depends on the car's age, model, price, condition and whether the problem is normal wear and tear. For a minor fault, the dealer must fix it within a reasonable time. For a serious fault, you can return the car for a refund or get a similar replacement. Contact the dealer first, and do not fix the car yourself first.

How do I apply to the Motor Vehicle Disputes Tribunal and how much does it cost?

You can apply online or at a court counter, and the fee is NZ$89. The fee is not refundable and cannot be waived. The Tribunal only covers cars bought from a registered trader, up to NZ$100,000, for vehicles under 3,500 kg. If you want to return the car, first tell the dealer in writing that you reject it and why. Attach this rejection letter to your application.

I bought a car from a private seller and it has problems. What can I do?

You have only limited rights, because the Consumer Guarantees Act does not apply to private sales. You may have rights if the seller misled you, the car was repossessed because of money owing, the seller had no right to sell it, or the seller was really an unregistered trader. In these cases, you can try to negotiate or apply to the Disputes Tribunal.

What is the CIN on a car window and what should I check on it?

The CIN is the Consumer Information Notice, an information card that dealers must display on used cars. Read it carefully before you buy. Check whether the 'security interest' box is ticked, as this shows money owing. If the money owing information is wrong, the security interest is not valid and the finance company cannot take the car from you. The dealer will ask you to sign the CIN, so keep a copy.

Answers are based on the verified content of this page — the official source always prevails.

Where can I check the official information?

Buying a car privatelyConsumer Protection (Ministry of Business, Innovation and Employment) · consumerprotection.govt.nz
Solving issues with your car dealerConsumer Protection (Ministry of Business, Innovation and Employment) · consumerprotection.govt.nz
Vehicle registration and licensingConsumer Protection (Ministry of Business, Innovation and Employment) · consumerprotection.govt.nz
Motor Vehicle Disputes Tribunal - What claims you can makeMinistry of Justice · justice.govt.nz
Motor Vehicle Disputes Tribunal - Make a claimMinistry of Justice · justice.govt.nz

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