Used Car Buying Guide

1. Car Finance

If you're not a cash buyer then you'll need to borrow to purchase the car. You can do this by arranging a Car Loan or Personal Loan. The AA offers personal loans over 12-60 months. Use the Auto Finance Calculator or Car Loans Calculator to work out the monthly repayments that suit you then you can apply online - just click on the buttons below.

• Finance Calculator
• Apply for finance

Tip: If you've got an existing mortgage you may be able to extend it to cover the cost of the car. However, whilst the lower mortgage interest rate may look appealing, unless you can re-pay the loan amount for the car over a couple of years, you’ll end up paying interest over the term of the mortgage which will end up being much more expensive.

2. Car inspections & history checks

You'll need to check out a) the car's history, b) the value of the car and c) the general condition of the car before you decide to buy it. The AA can help you at each stage.

For the vehicle's history the key facts you'll want to check out are:

• Is there finance owing on the vehicle?
• Is it stolen?
• Was the car imported in a damaged state?
• Who is the car registered to?

This information can be found via an AA Vehicle History report.

To get an idea of a fair market price use an AA Vehicle Valuation.

To check out the general condition ask for an AA Pre-Purchase Inspection.

• Vehicle History
• Vehicle Valuation
• Pre-Purchase Inspections

3. Car Insurance

Once the purchase is complete, we recommend you insure your car. AA Insurance offers three options:

Comprehensive

With Comprehensive Car Insurance, in the event of an accident, AA Insurance will cover the damage caused to your own car, as well as the damage caused to other people's cars or property.

Third Party

Third Party Car Insurance is a basic level of cover where AA Insurance will pay for the costs of repairing the others' cars or property where you're at fault in an accident.

Third Party Fire and Theft

With Third Party Fire and Theft Insurance you can choose to extend your Third Party cover to protect your vehicle if it's lost or damaged through fire or theft.

For more information or a no obligation quotation click on a button below.

• Comprehensive
• Third Party
• Third Party Fire and Theft

Warranty Insurance

AA Extended Warranty Insurance covers you against mechanical and electrical breakdown with one, two or three year warranty options.

• Warranty Insurance

4. Documents

There are some documents that you need to deal with.

Warrant of Fitness

Any car sold by a dealer must have a current (less than one month old) warrant of fitness. The same applies for private sellers, unless you the buyer agree in writing. More information can be found on the NZ Transport Agency website.
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Consumer Information Notice (CIN)

A dealer must complete and attach a CIN card to every motor vehicle displayed for sale. This provides information about the vehicle. The dealer must provide you with a copy of the CIN. More information can be found on the Ministry of Consumer Affairs website.
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Certificate of Registration

Lists the current registered owner of the vehicle. Check this against the identity of the person selling the vehicle. More information can be found on the NZ Transport Agency website.
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Sale Agreement

A dealer must provide you with a vehicle sale agreement. Make sure you read it thoroughly and understand it before signing. More information can be found on the Ministry of Consumer Affairs website.
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Change of Ownership

Registration of ownership simply defines who is responsible for the vehicle, in particular for paying licensing fees and fines. As part of the process of purchasing a vehicle both buyer and seller must complete change of ownership documentation. This can be done online via the NZTA website. Alternatively, the seller completes the Certificate of Registration form (or an MR13A); the buyer completes form MR13B. These forms are available from an NZTA agent like AA centres or AA WOF testing stations. More information can be found on the NZ Transport Agency website.
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Loan Agreement

If you apply for a loan the lender must provide you the terms of the loan agreement in writing in the form of a disclosure statement. More information can be found on the Ministry of Consumer Affairs website.
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Insurance Policy

When you purchase insurance your insurer will provide you with details of the cover provided, written in plain English, in an insurance policy document. More information can be found on the Insurance Council of NZ website.
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