If you buy from a registered dealer, you will have more protection under the law than if you are buying from a private individual, including:
Fair Trading Act (FTA)
When you buy a vehicle from a registered dealer, they must give correct information about:
price;
condition of the vehicle;
number of owners; and
odometer reading.
If you think that a dealer has misled you, you can report it to the Commerce Commission.
Consumer Guarantees Act (CGA)
The Consumer Guarantees Act applies to cars bought after 1 April 1994, and says that vehicles sold by dealers must be:
of acceptable quality;
fit for any particular purpose made known to the seller;
fit for their usual purpose;
free of small faults (unless they are pointed out to you before the sale);
safe;
match their description;
a reasonable price considering their age and condition; and
able to take reasonable wear and tear, given their age, condition and price.
It also requires that the trader has the right to sell the vehicle – if the vehicle you bought is repossessed due to money owed on it by someone else, you can claim your money back from the trader.
The CGA does not apply to vehicles bought from private sellers, or vehicles normally used for business purposes.
Personal Property Securities Act (PPSA)
If a vehicle has a security interest on it (basically this means if it has been used as security for a loan) then this must be disclosed to you in writing before you buy it. If there is security interest in the vehicle, and the trader disclosed that to you, then the finance company that registered the security interest can repossess the vehicle from you. If the security interest was not disclosed to you, then the finance company would have to recover the money from the trader (not you).
Motor Vehicle Sales Act (MVSA)
If you have a dispute with a registered trader over a vehicle purchase you can take it to the Motor Vehicle Disputes Tribunal. The Motor Vehicle Disputes Tribunal can deal with disputes relating to a breach of one or more of the following Acts:
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Many registered motor vehicle dealers are members of the Motor Trade Association (MTA). If you have a complaint about a vehicle sold by a dealer who is a member, you can contact the MTA about their mediation service.
