Buying and Selling

Protect yourself against buying a car with finance owing on it

If you managed to catch Fair Go on TV1 last night, you may have seen their report about the increasing number of second hand cars being sold to new owners who are unaware that there is outstanding finance on the vehicle.

If there is outstanding debt on a vehicle purchased through a private sale, car buyers are not only going to be dealt a nasty shock. They’re also at risk of their new car being repossessed, with no easy way of getting their money back.

Our AA Motoring Adviser Cade Wilson also featured on the report, providing some affordable tips on how New Zealanders can avoid ending up in this nasty situation. The most simple solution is to carry out a history check on the car before you hand over your cash.

“Basically, it’s a security register and it lets you know if there’s security interest or finance owing on the vehicle,” he explains.

If you have your eye on a new motor and want to avoid any unpleasant surprises or being out of pocket later, you can buy an AA Vehicle History report online.

The report costs just $20 for AA Members ($25 for non-members), and also checks the vehicle against police records as well as providing information about the vehicle's odometer reading, Warrant of Fitness, previous ownership and registration.

AA Motoring wants you to feel confident that you're getting a good car for the right price, and so we also offer other tools that will help guide buyers through their journey and put their mind at rest, such as a comprehensive pre-purchase vehicle check or an AA car valuation report.

Watch the full report from last night’s Fair Go over on their official website.

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