Home | Browse Topics | Consumer rights & money | Consumer protection | Issues with the goods in a private sale

Consumer rights & money

Chapters in this topic

Buying and selling privately

Issues with the goods in a private sale

What if the private seller made false or misleading statements about the goods?

Contract and Commercial Law Act 2017, ss 35, 37

You might be able to get compensation (“damages”) from the seller if they made a false or misleading statement to you about the goods or services that you bought, and you relied on that statement when deciding to buy the goods or services.

You might be able to cancel the contract if the statement was significantly false or misleading.

How am I protected if a private seller still owes money on what I bought?

Contract and Commercial Law Act 2017, s 195

You have the right to a refund or damages (“compensation”) if you’re sold goods in a private sale and, unknown to you, the seller didn’t have the right to sell the goods, or owed money on them, or had used them as security for a loan.

What if my goods get repossessed because the previous owner owed money on them?

Personal Property Securities Act 1999, ss 52–54 Contract and Commercial Law Act 2017, s 149

A creditor might be able to repossess goods from you, if:

  • you bought the goods privately
  • and either:
    • the person who sold you the good still owes someone else money on the goods, or
    • someone else has a security interest over the goods
  • and either:
    • the item was worth more than $2,000 when the seller originally bought it or used it as security to take out a loan, or
    • you knew about the security interest when you bought the goods, regardless of the value of the goods.

If a creditor does repossess something that was sold to you, you may be able to make a claim against the seller for a breach of the Contract and Commercial Law Act 2017.

Note: When buying privately, you should check the Personal Properties Securities Register (PPSR) to see if there is any money owing on the item that could affect the seller’s ownership of it. You need to register to do this, but registration is free. It costs $2.30 to search the register. You can only search the registrar if you have a valid and lawful purpose for doing so (in other words, you can’t use it to snoop on someone). You can also text to check if there is money owing on a motor vehicle (see: “Steps you can take to protect yourself when buying privately”).

What happens if goods I bought in a private sale are faulty?

Contract and Commercial Law Act 2017, ss 195, 196

If the goods are faulty, you might have a right to compensation or to a full refund, depending on how serious the problem is. If you’re entitled to a refund, you can get the money back in cash – you don’t have to accept a credit note. If you prefer, you can choose to accept a replacement or repair instead of a refund or compensation.

If you’re not happy with the seller’s response, you can take them to the Disputes Tribunal (see: “The Disputes Tribunal”).

Did this answer your question?

Consumer protection

Where to go for more support

Legal information and support groups

Community Law

Your local Community Law Centre can provide you with free initial legal advice.

Find your local Community Law Centre online: www.communitylaw.org.nz/our-law-centres

Consumer Protection

The Consumer Protection website has useful information on a range of consumer topics. Consumer Protection is part of the Ministry of Business, Innovation, and Employment (MBIE).

Website: www.consumerprotection.govt.nz
Email: cpinfo@mbie.govt.nz
Phone: 0508 426 678 (0508 4 CONSUMER)

Consumer NZ

The Consumer NZ website provides a wide range of information on consumer issues and template letters you can use to write to traders to enforce your rights.

Website: www.consumer.org.nz
Email: info@consumer.org.nz
Phone: 0800 226 786 (0800 CONSUMER)

Commerce Commission

The Commerce Commission enforces the laws against misleading and deceptive conduct by traders (the Fair Trading Act) and the consumer credit legislation (the Credit Contracts and Consumer Finance Act). The Commission provides information on these areas on its website.

Website: www.comcom.govt.nz
Email: contact@comcom.govt.nz
Phone: 0800 688 5463

To make a complaint online: comcom.govt.nz/make-a-complaint
To read consumer rights in different languages: comcom.govt.nz/consumers/read-about-your-consumer-rights-and-business-responsibilities-in-another-language

Citizens Advice Bureau (CAB)

CAB provides free, confidential and independent information and advice.  See CAB’s website for valuable information on a range of topics.

Website: www.cab.org.nz
Phone: 0800 367 222
Facebook: www.facebook.com/groups/citizensadvicenz

Find your local CAB office: www.cab.org.nz/find-a-cab

Product safety

This agency oversees the safety of consumer products that are not food, medicines or road vehicles. Their website has information for consumers about safety standards, product recalls and using products safely.

Website: www.productsafety.govt.nz
Email: cpinfo@mbie.govt.nz
Phone: 0508 627 774

Products recalled: www.productsafety.govt.nz/recalls

FinCap and Money Talks

FinCap is a non-government organisation providing free financial mentoring services.

Website: www.fincap.org.nz
Email: kiaora@fincap.org.nz
Phone: 04 471 1420

MoneyTalks is a financial capability helpline operated by FinCap. The Financial Mentors offer free, confidential advice by phone, text, email and live chat.

Email: help@moneytalks.co.nz
Phone: 0800 345 123
Text: 4029
Live chat: www.moneytalks.co.nz

Motor Vehicle Traders Register

Before purchasing off a motor vehicle trader, check if they are registered.

Website: www.motortraders.med.govt.nz
Phone: 0508 MOTOR TRADERS (0508 668 678)

Buying a car privately

Search the PPSR register to see if there is any security interest registered against a vehicle. This can be done for a small fee by registering to check online

Website: www.ppsr.companiesoffice.govt.nz

Check to make sure a car that you’re considering buying hasn’t been listed with the police as stolen.

Website: www.police.govt.nz/stolenwanted/stolen-vehicles

Other tips for buying a car privately from YouthLaw: www.youtube.com/watch?v=aK8irFAn1as

Complaints

Disputes Tribunal

The Disputes Tribunal can deal with claims up to the value of $30,000.  It is less formal than a court and cheaper.

Website: www.disputestribunal.govt.nz/about-2
Phone: 0800 COURTS

Motor Vehicle Disputes Tribunal

The Motor Vehicle Disputes Tribunal can deal with claims up to the value of $100,000.  It can only deal with disputes relating to registered traders (or those that should be registered).

Website: www.justice.govt.nz/tribunals/motor-vehicle-dealer-disputes
Phone: 0800 268 787

Dispute Resolution Schemes

There are four dispute resolution schemes for consumers dealing with lenders and other credit providers. Contact the scheme your service provider has registered with.

  1. Financial Services Complaints

Website: fscl.org.nz
Phone: 0800 347 257
Participants list: fscl.org.nz/search-financial-service-providers 

  1. Insurance & Financial Services Ombudsman

Website: www.ifso.nz
Phone: 0800 888 202
Participants list: www.ifso.nz/complaints#find-a-participant

  1. Banking Ombudsman

Website: www.bankomb.org.nz
Phone: 0800 805 950
Participants list: bankomb.org.nz/the-complaint-process/bank-participant

  1. Financial Dispute Resolution Service

Website: www.fdrs.org.nz
Phone: 0508 337 337
Participants list: fdrs.org.nz/become-a-scheme-member/scheme-member-search

Utilities Disputes Commissioner

The Commissions helps with complaints about electricity, gas, water and some fibre services.

Website: www.udl.co.nz
Phone: 0800 22 33 40

Participants list: www.udl.co.nz/making-a-complaint/complaint-form

Also available as a book

The Community Law Manual

The Manual contains over 1000 pages of easy-to-read legal info and comprehensive answers to common legal questions. From ACC to family law, health & disability, jobs, benefits & flats, Tāonga Māori, immigration and refugee law and much more, the Manual covers just about every area of community and personal life.

Buy The Community Law Manual

Help the manual

We’re a small team that relies on the generosity of all our supporters. You can make a one-off donation or become a supporter by sponsoring the Manual for a community organisation near you. Every contribution helps us to continue updating and improving our legal information, year after year.

Donate Become a Supporter

Find the Answer to your Legal Question

back to top