How to sell a car in New Zealand?

Kia ora, kiwi car owners! Are you planning to sell your old car and purchase a new one this summer? Selling your car doesn’t have to be stressful. In fact, it can be a simple and hassle-free process. This blog will teach you how to sell a car in New Zealand. From preparing your car, and where to list the vehicle, to after successfully selling your car, we’ve got you covered.

Get your car ready for sale!

1. Deep cleaning your car

Before you start selling your car, cleaning your car inside and outside is necessary. Cleaning the car not only makes it look better but also shows potential buyers that it has been well-maintained and received genuine care.

2. Have a mechanical check-up

Considering having a car inspection before selling your car is a wise decision. A thorough inspection can help you identify any potential issues and allow you to solve the problems before you sell the car. By doing this, you can increase your car’s value and appeal to more potential buyers. In addition, having an inspection report in hand can help ease their concerns and build trust during the selling process.

3. Prepare your car documents

Collect all related documents to your car, including registration, service history, and maintenance records. Having a clear car history can make your car stand out from the market.

4. Create the best photos of your car

Having a nice car photo can help your car stand out in a crowded market. Make sure you take the photo from the best angles with good lighting, inside, and outside. Then, you could edit your photos to make it perfect.

5. Gathering important information about your car

Before you list and sell your car, preparing the car information is quite necessary. The information includes:

• Proof of ownership
• Vehicle make, model, and year
• Mileage
• Body style (Hatchback, sedan, sedan, or etc.)
• Transmission
• Fuel type (Petrol, diesel, hybrid, or electric)
• Location
• Color
• Selling price
• Import history (NZ new or not)
• Number of owners
• Registration expires date
• WOF expires date
• Service records: These documents provide peace of mind to buyers that your car has been properly cared for.
• Parts that have just been replaced, like tires, wipers, car brakes, etc.
• Sales agreement: For private sales, it’s helpful to write up a simple agreement with the sale price and terms.

Car value and worth analysis

Correctly pricing your car will help lure in buyers. Price it too high and you could scare people off; too low and you’ll leave money on the table. Do a little research to get started. Look on websites like OnlyCars, or Trademe to see how much similar vehicles are currently selling for. 

Consider the car’s make, model, age, mileage and condition when setting a price. Generally, a well-kept car with low mileage brings a higher price. Additional features, such as heated seats, or a sunroof, can also add value. If in doubt, you could seek a professional assessment from a mechanic or dealer—they’ll provide you with an unbiased assessment of your car’s value. Or you can check out our other blog to find out how much your car is worth in NZ. 

Keep in mind that buyers love to bargain, so it may be wise to price your sale slightly higher than what you’re willing to accept. That leaves room for negotiation, which is almost always part of the process. 

Sell your car privately or through dealers?

After you prepare your car and wish to sell your car, the first decision you must make is whether to sell it privately or through dealers. Both choices have advantages and disadvantages, you should decide based on your individual situation and decide what is the best for you.  The following is a list of pros and cons of selling your car privately vs through dealers.

1. Selling your car privately

Pros:

• Higher selling price: Selling your car privately can potentially help you get a higher selling price, as you will deal with buyers directly and negotiate the price.
• Complete control over the transaction: You can set or adjust the selling price, bargain with the potential buyers, and schedule the meeting time and place. Everything is under your control.
• Various methods of paying: You can choose different options to get paid, like by cash, bank transfer, or any other method.
• No additional fees: Not like selling through dealers, you won’t have to pay extra fees.

Cons:

• Take more time: Selling your car privately might take a while and need you to put more effort into it.
• Handling paperwork: You must prepare all paperwork, like transfer of ownership, sales agreement, or any other necessary documents.
• Safety concerns: Meeting with strangers to show your car increases the safety concerns. Remember to meet them in public areas during the daylight hours. Also, keep an eye out for scammers you may come across while selling. Criminals always try to trick you into giving them your car or your money.

2. Selling your car through dealers

Pros:

• Quick and convenient: Selling your car through dealers will save you time and energy. Dealers have their own standard selling process, which allows you to focus on other important aspects of your life.
• Trade-in options: Many dealers provide trade-in options, which can streamline the buying process if you are looking for a replacement car.

Cons:

• Lower sale price: To ensure they make enough profit, dealers always offer lower prices.
• Potentially higher frees: Dealers might ask you to pay extra fees for maintenance or repairs, raising the overall cost of selling a car.

Where to list your car?

Only Cars

Only Cars is New Zealand’s latest online car listing platform, combining an extensive network of dealers, buyers and private sellers with low, one-time-only listing fees and in-house finance and insurance, Only Cars offers a straightforward, one-stop solution to buying or selling your vehicle online

Trade Me Motors

Trade Me Motors is one of the most popular platforms for buying and selling cars in New Zealand, with over 3 million users and listings. But please notice, that you have to pay the list fee, if you choose to be listed on Trade Me Motors.

Auto Trader

Auto Trader is another large online marketplace that can help you sell cars, which will only cost $20.

Facebook Marketplace

You can also sell the car through Facebook and it’s for free.

Transfer of ownership

It’s a simple but crucial process in New Zealand — transferring car ownership. So to prevent any further hurdles, you and the buyer must fulfil the requirements of the Transfer Process to avoid any legal issues down the line.

1. Inform Waka Kotahi NZTA: As the seller, it’s your duty to notify the NZ Transport Agency (NZTA) about the sale. You can do so online or in person. You’ll require the buyer’s information and the license plate number for the vehicle.
2. Buyer’s Responsibility: The buyer is responsible for registering the car in their name. Hopefully you won’t have any late fines to worry about, so make sure they do this step sooner rather than later.
3. Transfer Fee: Typically paid by the buyer, but good to ask and confirm upfront to avoid confusion.

Keep a copy of the transfer confirmation for your records—it’s your safety net in case of disputes. You can explore another blog of ours here to get detailed information on transferring ownership in NZ.

Cancel or transfer insurance

After you sell the car, make sure to update your insurance. If you’re replacing your car, notify your insurer to cancel the policy or transfer it to your new vehicle. If you’re canceling, request a refund for any unused premium.

To transfer the policy to the buyer, check with your insurer — it’s not always permitted. Ultimately, the buyer is responsible for getting their own insurance before they leave the lot.

Handle car finance

If your car is financed, you will have to pay off your loan before selling. Here’s how to go about it:

1. Call Your Lender: Tell them you plan to sell, and ask for a payout amount.
2. End the Loan: Pay off the balance with the proceeds from the sale. Once you’ve paid it off, the lender will relinquish their interest in the car.
3. Hold Title Free and Clear: All paper should reflect you as sole owner, without outstanding debts or liens.

If you don’t have enough cash to pay off the loan, check out our other blog, which explains two options for selling a car that’s under finance. 

Wish to buy a New Car and Need Finance Help? Consider Kiwi Car Loans!

Kiwi Car Loans offer competitive vehicle finance with a wide range of lenders. Sitting in between lenders and customers, out team provides professional and efficient service to find affordable finance options for your next car, motorbike, caravan, boat or jet-ski. We have a strong relationship with dealerships and lenders nationwide and offer a 100% online process with excellent customer service. Apply for finance now or use our calculator to secure the best car finance deals in NZ. Or call us today on 0800 448 734.

Final Words

Selling a car in New Zealand can seem like an awful lot of work, but if you break it down into smaller steps, it becomes a piece of cake. Whether you’re chiefly concerned with getting the best price or closing the sale quickly, preparation is vital. If you follow these steps, you’ll be handing over the keys very fast.