Car buyers' rights

Here's our guide to your rights when buying a car.

This page reflects changes introduced by the Motor Vehicle Sales Act 2003.

Buying privately

If you buy privately, you have limited protection. The Consumer Guarantees Act and Fair Trading Act don't apply, although in some circumstances the Contractual Remedies Act does apply. If a private seller misleads you about the car, you can take them to a Disputes Tribunal.

You can take the following steps to protect yourself when buying privately:

• Check the car has a WOF less than one month old. (Provided the buyer agrees in writing, sellers have the option of selling without a warrant or with a current warrant more than one month old. If the car is sold without a warrant, the buyer must undertake not to take the vehicle on the road except for the purposes of getting a new WOF.)
• use a vehicle history checking service to see if there's money owing on the car.
• arrange for a thorough mechanical check of the car. Use a mechanic or a specialist service - see the Yellow pages under "Vehicle Inspection Services".

However, if the motor blows up while you're driving the car home, you'll be very lucky to see your money again.

Buying from a dealer

If you buy a second-hand car from a dealer, you have rights under the Consumer Guarantees Act and the Fair Trading Act.

The general effect of these laws is to help ensure that:

• you are not misled about the nature of the vehicle you buy
• and that it is of acceptable quality (taking into account its age and the price you pay for it).

Under the new Motor Vehicle Sales Act (MVSA) all car dealers must be registered.

Any person who holds themselves out as being in the business of motor vehicle trading, or who sells more than six vehicles or imports more than three vehicles within a twelve-month period, is considered under the law to be a motor vehicle trader and must be registered (unless they can show the sales or importations were not done for gain). This includes car fairs, car consultants, car auctioneers, and online car sales services.

Dealers who trade without being registered face a maximum fine of $50,000 for an individual or $200,000 for a company.

You can check if a dealer is registered or banned at the Motor Vehicle Traders Register website or by phoning 0508 668 678.

A registered motor vehicle trader will guarantee consumers "good title" to a car . This means they can legally sell the car and you will not be liable for any debts hanging over it, unless those debts were specifically pointed out to you in writing. This protection does not apply if you buy privately.

Every vehicle sold by a trader must have a warrant of fitness less than one month old.

Supplier Information Notice

A dealer is required to attach to every motor vehicle displayed for sale a "supplier information notice" (SIN).

The information that must be disclosed in the SIN includes:

• The name and business address of the dealer.
• Whether the dealer is a registered motor vehicle trader.
• The cash price of the vehicle.
• Whether the vehicle is subject to road user charges.
• Whether any security interest is registered over the vehicle.
• The year in which the vehicle was manufactured (or the manufacturer's designated "model year").
• The make, model, engine capacity and fuel type of the vehicle.
• The year in which the vehicle was first registered in New Zealand, or, if the vehicle was first registered overseas, the year of that first registration.
• The odometer (distance travelled) reading, or a statement that the the odometer reading is or may be inaccurate.
• Whether the vehicle has been re-registered.
• Whether the vehicle is recorded on the motor vehicle register as having been damaged when it was imported.

If you buy the car, you must be given a copy of the SIN.

If a vehicle is displayed without a SIN, or the information on the SIN is misleading, you can complain to the Commerce Commission. The commission can prosecute for breaches of the Fair Trading Act. If you buy the vehicle and then discover you were misled you may be able to take action yourself under the Fair Trading Act.

When things go wrong

Your first step is to discuss the problem with the dealer. If they won't help, you have two options: to take a case to the specialist Motor Vehicle Disputes Tribunal (MVDT), or use a regular Disputes Tribunal.

It is important at this point to get an independent report which will back up your claim. For example, if the problem relates to a fault with the vehicle, you should ask a mechanic to provide a report on the fault and what is required to remedy it.

You should also make sure you have available any material relating to the sale of the vehicle (for example, the SIN) and any subsequent work you've had done on it (inspection reports, and so on).

Motor Vehicle Disputes Tribunal

The MVDT is run by the Department of Courts. There is a $51.11 fee for taking a claim to the MVDT. The hearings are in private and you can't be represented by a lawyer - although you can consult a lawyer before the hearing.

The MVDT will ask the dealer to discuss the problem with you. If the problem isn't resolved to your satisfaction, the Tribunal will set a date for a hearing.

The MVDT can hear claims up to $100,000 (or more if both the parties agree).

The MVDT can order any of the remedies available under the Consumer Guarantees Act, Fair Trading Act, or the Sale of Goods Act.

For example, under the Consumer Guarantees Act you may be able to claim a refund, or require the dealer to meet the cost of repairs. Where there has been a breach of the Fair Trading Act, you may be able to claim for any resulting loss of value.

To contact the Motor Vehicle Disputes Tribunal:

• Ring them on 0800 367 6838
• or write to them at PO Box 6848, Wellesley Street, Auckland.

Disputes Tribunal
You also have the option of taking a claim to the standard Disputes Tribunal. However, the Tribunal can only hear claims up to $15,000 (or $20,000 if both the parties agree).

For more information, see our full guide to Disputes Tribunals.

More help

• Motor Vehicle Traders Register
  To find out if a car dealer is registered use the MVTR's website or ring them (toll-free) on 0508 668 678.