Heading to the internet to find your next used car is a great idea.
Buying privately or through a registered dealer, online car buying is safe and easy when you follow some basic guidelines.
The Kick The Tyres Pre Purchase Vehicle Inspection team have seen a lot when it comes to buying and selling used vehicles! Here’s some of our tips of how you can best protect yourself and get the most out of your buying or selling a used car experience.
Make sure you get a Bill Of Sale
Thousands of private sales of used cars change hands every month and while most of these transactions occur with no problems, sometimes things don’t go as planned. To be able to legally rectify any problems you’ll need to ensure you have a Bill Of Sale. It’s the first thing either the Police or your lawyer will ask for.
What is a bill of sale?
A bill of sale is a legal document that confirms the transfer of ownership of property. By detailing the agreement made between seller and buyer, the bill of sale acts as evidence of a contract and is legally binding. Information on a bill of sale should include (at a minimum):
- Year, make and model of the vehicle, as well as other useful descriptive information
- The vehicle identification number (VIN) / vehicle registration number
- Odometer reading (mileage)
- Buyer contact and address information
- Seller contact and address information
- Date of the sale
- Agreed upon purchase price
- Signatures of both buyer and seller
If the transaction includes any conditions, for example the sale is dependent on a pre purchase vehicle inspection or finance approval, make sure these details are included on the bill of sale. You should also include how many days the buyer has to complete that pre purchase inspection, confirm finance or pay a deposit. Make sure that any assurances that either party give are also recorded. Basically, write down everything possible that may be something that is called into question if things go wrong at a later date.
You can write your own bill of sale or download a generic template from consumerprotection.govt.nz.
PROTECTION FOR BUYERS AND SELLERS
A bill of sale is one of the few legal means that will allow the Police to get involved if your long-distance transaction goes wrong (in the worst case scenario!). You can use the bill of sale as proof of the agreements you and the seller made to each other. With a bill of sale, the buyer has an agreement in writing that they will receive the vehicle for a specified price. No money should ever be transferred unless buyer and seller have a signed bill of sale.
A bill of sale protects the seller too. It may include lines that define the sale such as “as is,” or “where is,” which states the vehicle is being sold in its present condition and that it is the buyer’s responsibility to arrange for the car to be picked up.
Remember; car dealers use a bill of sale agreements (or vehicle offer and sale agreements) so each party knows what is expected from them. You should too.
Is there money owing on the Vehicle?
Every day in New Zealand finance companies repossess cars where money is owed by a previous owner. As a buyer purchasing privately it is YOUR responsibility to check for finance or security over the vehicle before you purchase it.
If a vehicle has finance outstanding from a previous owner a finance company is legally entitled to repossess that vehicle from the new owner. Generally the new owner will have no chance of getting their money back from the seller, unless they file a claim with the Disputes Tribunal and go through the lengthy process that follows. A new owner has no rights with the finance company that repossessed the vehicle. Kick The Tyres Pre Purchase Vehicle Inspections highly recommend that you take the time and effort to check either CarJam or the PPSR register to ensure the vehicle you are buying has clear title.
It’s really straight forward for a buyer to conduct a PPSR check on a vehicle they are intending to buy. You’ll need a RealMe log in through mbie.govt.nz and you’ll have to pay a small fee. You’ll also need either the vehicles registration number, chassis number or VIN number. Conduct a PPSR search at ppsr.companiesoffice.govt.nz.
Or you can use carjam.co.nz, where various options are available for reporting at a small cost.
Get a Pre Purchase Vehicle Inspection
A pre purchase vehicle inspection should be the most important thing you do when buying a used car. You can request a pre purchase vehicle inspection through any dealer and most private sellers will be open to allowing Kick the Tyres Pre Purchase Vehicle Inspections access to the vehicle. A helpful and cooperative seller is a good sign that the car is legitimate, and a good buy.
Kick the Tyres Pre Purchase Vehicle Inspections can even make it as simple as possible for the seller by picking up and returning the vehicle to them on your behalf.
Pre purchase vehicle inspections make sense. Kick The Tyres vehicle inspectors are trained and experienced in what to look for across almost all vehicles available on the market.
Pre purchase vehicle inspections are particularly vital if you are buying a vehicle “sight unseen” e.g. from another city or town.
Check the warrant of fitness
All vehicles sold in New Zealand, both privately or through a dealer, are required to have a warrant of fitness certificate that is no older than 28 days at the time of sale. This is protection for the buyer to ensure that the vehicle they are purchasing is road worthy and meets minimum safety standards.
Completing the transaction
This is the point at which the NZTA requires both parties to make notification of the vehicle changing hands.
The buyer must complete a Notice by the person acquiring the motor vehicle form (MR13B). This must be taken in with a suitable id and acquisition of motor vehicle fee to an NZTA agent e.g NZ Post.
The seller must complete a Notice of person selling/disposing of motor vehicle form (MR13A) and post this back to the NZTA (details are on the form).
A seller won’t part with the car until he has money in hand and a buyer shouldn’t part with any money unless a Bill of Sale has been received and agreed upon. This document is one of the few legal documents that can protect a buyer at this stage of a transaction. After a Bill of Sale is agreed upon, it’ll be time for money to change hands.
Kick The Tyres Pre Purchase Vehicle Inspections highly recommends that once you’ve paid for the vehicle, you arrange for your or your shipper to pick up the vehicle that same day, or very shortly after. You don’t want your property remaining in the care of the previous owner any longer than necessary. And it is your property now. Most sellers won’t risk additional liability once they’re paid for the vehicle. In most cases it will be the buyer’s responsibility to arrange for transport of their new car to their home.
Traditionally the best way to purchase a car has been to make the transaction in person. You hand the seller the money and he hands you the keys. No-fuss. This may require you to buy a one-way plane ticket and fly to the location where the sale will be made. You can make one final inspection of the vehicle, this time in person, and be sure of what you’re getting. The best part is that once money has changed hands and the keys are yours, you can drive your new purchase home!
Once of the biggest tips Kick The Tyres Pre Purchase Vehicle Inspections can give is, don’t let your emotions cloud your judgment. You’re about to put real money, and probably a lot of it, down on something you may not have seen in person. You’re taking risks in doing so, but if you follow the tips provided above, and do your research, the process can be quite enjoyable, and not nearly as dangerous as it may seem.