If you buy a vehicle from a dealer, you have rights under the Consumer Guarantees Act and the Fair Trading Act (see: “Automatic guarantees when buying from a business”, and “Fair Trading Act: Protections against misleading or unfair trading”).

You also have extra protections under the Motor Vehicle Sales Act 2003.

Motor Vehicle Sales Act 2003, ss 7–9

Someone who buys and sells motor vehicles as part of a business is considered a “motor vehicle trader”. This includes anyone who represents themselves as doing this as part of a business.

If someone sells more than six vehicles or imports more than three vehicles within a 12-month period, they’ll be considered to be a motor vehicle trader, unless they prove they the vehicles were not sold or important for the primary purpose of making a profit.

Motor Vehicle Sales Act 2003, ss 22, 56, 95, 118

Every motor vehicle trader has to be registered on the Motor Vehicle Traders Register. You can check the Motor Vehicle Traders Register online for free: go to: www.motortraders.govt.nz and click: “Search the register”.

You can also ask to see the trader’s registration certificate. This will have the dealer’s trader number on it and the date their registration expires.

Acting as a motor vehicle trader without being appropriately registered can lead to heavy fines — up to $50,000 for an individual or $200,000 for a company.

Motor Vehicle Sales Act 2003, ss 14, 15 Personal Property Securities Act 1999, ss 58, 59 Land Transport Rule: Vehicle Standards Compliance 2002, rule 9.12

A motor vehicle trader is required to:

• tell you about any security interests – they have to attach a notice to the vehicle to state whether there is any security interest over the vehicle. For example, if the previous owner owes money on the car to a finance company, the finance company holds a “security interest” over the car. If there is a security interest that is not mentioned, then the trader (and not you) will be liable for any outstanding debts.
• attach a Consumer Information Notice (CIN) to any used motor vehicles for sale (see below).
• make sure:
  • in the case of most vehicles (e.g. passenger cars, motor cycles), that the warrant of fitness is current and less than one month old;
  • in the case of heavy vehicles (a vehicle that weighs more than 3,500 kilogrammes — for example, a truck), that the warrant of fitness is current; and
  • in the case of vehicles that also require a certificate of fitness (for example, heavy vehicles, shuttle buses), that they have a current certificate of fitness or in-service conditional permit.

If the vehicle does not meet the above requirements in relation to warrants and certificates, a motor vehicle trader cannot sell it to you, unless you give a written undertaking to confirm, as appropriate, that

• • you know and accept that the warrant is more than one month old, or
  • if the vehicles does not have a valid warrant of fitness (and/or a valid certificate of fitness, if required), you agree not to operate the vehicle until it has the necessary warrant and/or certificate.

Motor Vehicle Sales Act 2003, ss 14–17 Consumer Information Standards (Used Motor Vehicles) Regulations 2008

A motor vehicle trader must attach a Consumer Information Notice (CIN) to every used motor vehicle displayed for sale, including if it’s advertised online.

Anyone selling a used car through a car market operator must also display a CIN. A car market operator is a person who provides premises or facilities for others to sell vehicles (for example, a market, car fair, or website).

If you buy the car, the trader has to:

• give you a copy of the notice, and
• get written acknowledgement from you that they have given you a copy of the notice. This might be included in your contract for the sale.

Motor Vehicle Sales Act 2003, s 6 Consumer Information Standards (Used Motor Vehicles) Regulations 2008

The information in the notice must include:

• the name and business address of the supplier
• if the supplier is a registered motor vehicle trader, their registration number
• the cash price of the vehicle, including GST, registration and licensing costs (unless the vehicle is being displayed for sale by auction or by competitive tender, in which case this should be stated in place of the cash price)
• whether any security interest is registered over the vehicle
• the vehicle year of the motor vehicle (the year it was first registered anywhere in the world) as recorded on the motor vehicle register. Note that, if the motor vehicle was registered before 1 January 2007, “vehicle year” means the year of manufacture, or the model year, or the year of first registration.
• the make, model, engine capacity and fuel type of the vehicle and the vehicle identification number (VIN) or chassis number
• the year in which the vehicle was first registered in New Zealand
• the odometer (distance travelled) reading, or a statement that the odometer reading is or may be inaccurate
• whether the vehicle has a radio capable of receiving broadcasts within the frequency range used for FM broadcasting in New Zealand without the use of a band expander
• whether or not the vehicle has a current warrant of fitness and/or certificate of fitness, vehicle licence and registration and the relevant expiry dates
• whether road user charges apply to the vehicle and whether there are any outstanding (unpaid) road user charges
• if the vehicle was imported as used vehicle to New Zealand:
  • the year in which it was first registered overseas
  • the country in which was last registered, and
  • whether it is recorded on the motor vehicle register as being damaged at the time it was imported.

Motor Vehicle Sales Act 2003, s 101

If a vehicle is displayed without the required information, or the information is misleading, you can complain to the Commerce Commission. The Commission can prosecute dealers for breaches of the Fair Trading Act (see: “What can I do if a trader has engaged in misleading or unfair trading?”).

If you buy the vehicle and then discover you were misled, you will be able to take action under the Fair Trading Act (see: “Protections against misleading or unfair trading”).

If you are unable to sort out a problem with a motor vehicle trader personally, you can:

• make a claim to the Disputes Tribunal for amounts of up to $60,000 (see: “The Disputes Tribunal”)
• make a claim to the Motor Vehicle Disputes Tribunal for amounts of up to $100,000 (or more, if both sides agree), but only if the vehicle weighs less than 3,500 kilogrammes
• make a claim to the courts — you can make claims of up to $350,000 to the District Court, claims over $350,000 can only be made to the High Court.

Note: You can only use the Motor Vehicle Disputes Tribunal if you bought from a motor vehicle trader, not if you bought a vehicle from a private individual.

Motor Vehicle Sales Act 2003, ss 89, 90, 90(1)(a), Schedule 1, clauses 8, 9 Motor Vehicle Sales Regulations 2003, reg 13

The Motor Vehicle Disputes Tribunal (the “MVDT”) is similar to the general Disputes Tribunal, but specialises in problems with motor vehicles. There is an $89 fee for taking a claim to the MVDT. The hearings are open to the public, unless the MVDT directs otherwise, and usually neither side can be represented by a lawyer. The MVDT can deal with claims up to $100,000 (or more, if both sides agree).

The MVDT can decide on any application or claim against a motor vehicle trader in respect of the sale of any motor vehicle bought under the:

• Contract and Commercial Law Act 2017 (see: “Buying and selling privately”)
• Fair Trading Act 1986 (see: “Fair Trading Act: Protections against misleading or unfair trading”)
• Consumer Guarantees Act 1993 (see: “Automatic guarantees when buying from a business”)

The New Zealand Legal Information Institute has published a guide to taking a claim to the Motor Vehicle Disputes Tribunal.