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What you need to know when buying a car in NZ

August 22, 2016

WOF, rego, insurance, RUC, pre-purchase inspection? Wait, what? I'm confused!

Surely buying a good and funky car is one of the most important things us backpackers look for when

landing on a WHV in New Zealand. Here is a little guide to help you understand how things work and

finding the right car. Please note that all details have been checked and confirmed as best as we could

at the time of writing and we do not hold any responsibilities of incorrect information.

Registration - Also known as Rego between locals. This is just a road tax which you have to pay monthly.

Driving a car with no rego is illegal. It's best to buy a car with some months of registration left in order to

save you from some hassles. If you buy a car with an expired registration (PS NOT a deregistered one) you

may have to pay all accumulated months till the to-date.

Cost of rego varies depending on the car. Cost can be checked online! You just need to enter the number plate:
http://rightcar.govt.nz/rego

WOF - Warrant of fitness - The warrent of fitness is an inspection which is done by a certified garage to prove that your car is safe for road use. Like the registration, driving a car with an expired WOF is illegal. The WOF has to be done every 6months for cars which are older than the year 2000, and yearly for cars after the year 2000. Please note that this is not a full mechanical inspection and is not to be confused with a pre purchase inspection. A WOF will cover the basic safety features of a car like seatbelts, wipers, lights, shock absorbers, steering etc.

Finding a car with a few months of WOF left is ideal and allegedly it is against the law for sellers to sell cars with less than 3months of warrant left unless they state the following words:
"as is, where is" on the advert.

Cost of the WOF inspection depends on the garage but usually vary between $40-$60. Obviously if something is wrong with the car, then you need to pay for the repairs.

RUC - Road User Charges are for diesel vehicles. Although diesel in NZ is way cheaper than petrol, you have to pay for KMS when you own a diesel vehicle. Cost of RUC varies on cars and can be calculated here:
http://transport.govt.nz/land/roadusercharges/online-ruc-calculator/

This means that for EXAMPLE for every 1000kms you have to pay $62. An average diesel car can do around 600-700kms on a full tank. So you can do your maths and see if it's more worth going for a petrol or diesel car.

Pre-Purchase Inspection - As per it's name this is just a mechanical inspection before you purchase a car.

Is it worth doing a pre-purchase inspection? Yes, if you don't have a clue what to look for when buying a car, I strongly recommend doing an inspection before buying it. Costs of repairs may be very expensive so it's very important that you have a good car for your travels. Does this mean that the car is not going to break down? No, a pre-purchase inspection is not a guarantee that it's going to be flawless, but it will give you a rough idea of the good and bad of a car and what might need fixing to run smoother!

How much will this cost? Well this depends on the garage you go to, if you shop around you most probably can get one done for around $70-$100, but it can cost more or less!

Insurance - Insurance is not mandatory in New Zealand and it's legal to drive a car without proper insurance coverage. However please remember that in case of an accident, you have to personally pay all damages done to you and 3rd parties. This can be quite expensive so it is strongly recommended to buy an insurance policy with at least 3rd party coverage. There are some companies which cater for backpackers so shop around and find the best deal!

So, I have found the car I want and bought it after having it checked. What should I do?
Head to the nearest post office or VTNZ garage in order to do the Owner Transfer. To do this you have to fill out a form, show your passport, pay a fee of $9 and the car is now in your name! Very quick and easy!

 


Some tips if you are looking to buy a car:
- It is best to buy a car which is common. Uncommon cars may cost more to repair or can be very difficult to find parts for them. Spending just a few days observing cars passing by, you'll soon notice that Japanese cars, especially Toyota's and Nissan's are very common.
- Timing Belt (Cambelt) / Timing Chains (Camchain) - A cambelt has to be changed every 100,000kms, failing to do so can have huge consequences on the car engine. If it breaks or stretches out, you can say goodbye to your car, as most of the times, it's not worth fixing. Timing Chains are a bit more hassle free, but this doesn't mean that it cannot break either! As the name implies, it is a chain (not a belt), and therefore SHOULD last longer.
- Automatic or Manual? Although some people prefer manual (like myself), just stop for a second and think! A manual vehicle has a lot of wear and tear on the clutch especially if the car was being ping-ed pong-ed from an owner to another. Cost of a clutch replacement is not cheap and I am pretty sure you would rather spend that money on travelling rather than a car.
- KMs - This goes without saying but it's better to find a car with low mileage. Petrol vehicles don't last as long as diesel motors so finding one close to 500,000kms is a huge no no.

One more thing to mention when buying a car is that it may be worth paying for a report to give you the history of the car and confirm that it was never written off or that car is not reported as stolen. This can be done from: http://www.carjam.co.nz/

 


Now good luck, and enjoy your ride around New Zealand!

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