Buying a used car privately?

You may want to consider these tips before you buy:

Buying a car from a private seller may be cheaper than buying from a licensed dealer, but it offers much less legal protection. The Team at Kiwi Car Loans have compiled a list of 10 Helpful tips that may keep you out of hot water when buying your next car.


1) Arrange your finance first

Arrange your finance before you start shopping. A pre-approved loan increases your negotiating power is like buying with cash – money talks! Once you find the car you want, it is more likely that you can secure the best price. For fast, affordable finance call KCL on 0800 008 888 or Apply now


2) Get a PPSR check

Before you hand over your hard earned cash, make sure you get a Personal Property Securities Register (PPSR). This will reveal if your vehicle is debt-free and safe from repossession.  While a Licensed Motor Dealer (LMT) must guarantee clear title of a vehicle in their car yard, a private seller does not. So the implications of not getting a full background check before you buy privately could leave you feeling ripped off and even sometimes car-less.

As a valued Kiwi Car Loans customer, we will conduct a complimentary PPSR and vehicle history check for you to help ensure your next purchase is the right one!


3) Bring someone along who knows about cars

If you don’t trust your own knowledge, bring along someone who knows what they’re doing. This could be a trusted friend or family member or even your trusted mechanic. You could also get an AA vehicle inspection that will provide a comprehensive report on the condition of the car, as well as any repairs that may be required in the near future. Kiwi Car Loans customer’s benefit from a complimentary finance inspection. This verification process captures critical details such as Make, Model, VIN & Serial Numbers as well as digital photographs to provide further detail.


4) Take the car for a test drive

Make sure you take the car for a decent test drive over a range of different speed and road conditions to ensure it drives and feels right. Before test-driving any car, know who is liable if any accident or incident were to occur during the test drive. If you have to take financial responsibility you will need to decide if you’re prepared to accept the risk. If a private seller refuses to let you test drive a car, walk away. There are plenty of cars on the market and it simply isn’t worth the risk.


5) Check the cars service history

If you can find a car that has a complete service history with it, then you’ll have a better idea what it’s been through and what work has been done. But regardless of the service history getting a full vehicle inspection before purchasing will help identify any underlying issues or big expenses that might be waiting just around the corner.


6) Are there any illegal modifications?

It can be extremely difficult to identify illegal modifications so the best bet is to ensure you have a Vehicle Inspection done on any vehicle you are keen to buy. You could be fined if your car has illegal modifications, the car could be impounded, and it could affect your ability to insure the car.


7) Consider insurance costs and arrange insurance.

Do some research and ensure you know how much your insurance is going to cost. Sometimes that sport scar you thought you always wanted comes with a costly insurance premium!

Before you drive away in your new set of wheels, make sure you’re insured. Kiwi Car Loans has partnered with some of New Zealand’s best insurers to offer an extensive selection of Insurance Products to give you peace of mind in the case of an unexpected event. Contact us for an obligation free finance quote.


8) Consider purchasing a warranty

If you buy a car privately, it is most likely you will not get a warranty. A warranty will protect you from losing money if the vehicle is faulty. Kiwi Car Loans is an approved Selling Agent for the leading providers of extended warranties throughout New Zealand. We can assist in providing you a quality extended vehicle warranty product to suit your coverage requirements and budget, allowing you to choose the level of protection that best protects you against costly repairs.


9) Negotiate.

It is most likely that you have chosen to buy privately to try and get more for your money. Once you have checked the vehicle out and taken it for a test drive, consider how much more you need to spend on it (e.g. window tints, minor repairs, servicing etc.). Take this off the purchase price and compare it to what else is out there on the market. We also recommend customers to check out Auto Trader or other online sales as a pricing guide. Even consider involving a third party like Kiwi Car Loans with your purchase. We are here to help every step of the way to make your car buying experience an enjoyable one.


10) Do your paperwork

If you have purchased a car privately, you’ll need to submit the following document to the necessary AA or Kiwi Post in your local area:

  • Change of ownership

At Kiwi Car Loans we would like you to feel like we are your partner in the car buying process.   Should you have any Questions along the way, simply pick up the phone to one of our friendly team or email us. We will make the process of arrange finance for your next purchase this easy!


 Call us today on 0800 008 888 or visit us online.


Back to Articles