Next to a house, a car is easily the biggest purchase you could ever make in New Zealand. So it’s only natural to explore different avenues to lower your expenses to have a reliable ride. But even if you can apply for financing to reputable used car dealers, there’s a good chance you’d rather work with a private seller to save thousands in the process.
In everything goes well, a private trade is certainly more economical. Especially if you’re savvy enough to spot a good vehicle when you see one, then you’re more or less in the clear. In reality, however, not all private transactions end on a positive note, used car supplier, Auckland Motors, says.
Certain Laws Don’t Apply
The law can’t fully protect you that well if you buy privately. The Fair Trading Act and Consumer Guarantees Act both won’t come into play; only the Contractual Remedies Act could cover you legally but only under some circumstances.
In case of problems, you can file a claim with the Disputes Tribunal. However, the Tribunal can only resolve disputes that involve up to $20,000. If you’re talking about a bigger amount, you can take your case to the District or High Court, but the process, of course, would cost more.
‘As Is, Where Is’ Is Favours the Seller
If you agree on this term, it only means that you accept that the private seller doesn’t guarantee that the vehicle might not start or have hidden faults. Essentially, it makes the other party unaccountable should the vehicle acts up right after the deal.
Anywhere you look at it, this kind of settlement doesn’t benefit you.
You Risk Repossession
Worst, the vehicle you privately buy might be repossessed if it’s a collateral for a loan by its previous owner. The Sale of Goods Act may cover you when it comes to this matter, especially if the private seller was actually not the legal owner of the vehicle when it was sold to you.
Regardless, you’re the real loser in this situation. You lose your money, and then the vehicle.
It’s true that might significantly save thousands of money by choosing to buy from a private seller than licensed motor vehicle dealer. But you’d discover the real cost of the used vehicle once it turns out to be a sham.