NZ Working Holiday Visa: Buying a Car in New Zealand

I knew I wanted to buy a car the moment I decided to go through with my New Zealand working holiday visa adventure. I like to get off the beaten path and I dislike having to rely on buses, trains, shuttles, and tours.

Thankfully, everything I read said that cars in New Zealand are very affordable.

However, that doesn’t mean that I wasn’t nervous about buying a car, nervous about driving on the opposite side of the road, and nervous about eventually selling the car.

I read blog posts and guides about buying a New Zealand car and they definitely helped ease some of my fears. However, my experience was different from most of what I’d read, so I wanted to add it to the knowledge base for anyone else who may be in my same position and is searching for as much information as he/she can find.

How much does a car cost in New Zealand?

All the blog posts and guides I read said that it is fairly easy to find cheap cars in New Zealand. Like, for $1000 or $2000 NZD. However, they said it depends on the time of year. If you are buying in the New Zealand spring or summer, car prices are much higher as demand is higher (from tourists and work holiday visa-holders). However, in fall or spring, supposedly the prices are quite low.

Coming from the US, I thought the prices were very low for a decent car. However, they weren’t that low!

Searching in July of 2023, I mostly saw cars (coupes and small hatchbacks) for sale between $3000 and $4000 NZD.

What should I know to buy a car in New Zealand?

New Zealand cars must have a valid WOF (Warrant of Fitness) which is basically an annual safety review on the car. New Zealand cars must also have registration called REG or REGO.

When buying a car, the most important thing is the WOF. It can be very expensive if a car fails it’s WOF and you have to pay for the repairs.

I found a car at the Auckland City Car Fair that had a WOF that was seven months old. I told the sellers I would be willing to buy it if they renewed the WOF. The sellers figured the car would pass no problem, as they’d had no problems driving it. Instead, the WOF inspection found several issues and they ended up having to pay over $1000 NZD to get it fixed. As they also had to see a specialist, which would have taken several days, I passed on buying that car.

I read guides that listed other general things to look for when buying a car: brakes, rust, leaks, etc. I considered getting a pre-purchase mechanical inspection, as many guides suggested. However, when I went to schedule one, the mechanic didn’t have an opening for three days. I would have lost the car if I waited that long. So, I just made sure the car I bought had a brand new WOF and then looked it over myself.

The first place I took my new car was north to see Waipu Caves, Piroa Falls, and hike Whangārei Heads!

Where can I buy a car in New Zealand?

I arrived in Auckland, so I was searching for a car there. I didn’t bother looking elsewhere, so I can’t be sure how the process is elsewhere. However, I did speak to a girl at my hostel who said she left Auckland to find a car, hoping it would be cheaper elsewhere. And she didn’t find anything good, so she came back to Auckland.

Based on the guides I’d read, I looked for a car on TradeMe.com (New Zealand’s eBay equivalent), AutoTrader, Backpacker Cars, and at the Auckland City Car Fair.

TradeMe.com

I was a first time car buyer and I’ve also never used eBay, so maybe this is not intimidating to other people, but I did not want to have to bid on a car. So I checked out TradeMe, got a feel for prices in the area, but did not end up using this to search at all.

AutoTrader

I messaged three people on AutoTrader about cars. One got back to me and I set up a meeting. It was a Trade In car service and the vendor wouldn’t even consider getting a new WOF for a car I was interested in. He also tried to talk me out of the car I wanted into another one that was more expensive. I just felt like he was trying to take advantage of me, so I left.

The other two never messaged me back.

Backpacker Cars

This site is probably great for people who are just coming to New Zealand for a few months on holiday. They help you arrange everything, even willing to do so before you arrive, and then buy the car back at the end. However, I found it difficult to use as a person in New Zealand. I just wanted to see all the car options, but they don’t list them all on the website. I didn’t end up using this website at all.

Auckland City Car Fair

After not having much luck online, I decided to go to the Auckland City Car Fair. This is located at 70 The Strand, Parnell, Auckland CBD, 1010, New Zealand every Sunday from 8am to 1pm.

In my imagination, this was going to be a grand event in a warehouse with a thousand cars present and mechanics and a booth with official ownership transfer paperwork.

Instead, it was a gravel lot on a street corner and there were about twenty cars there. People just milled about, looking at the cars and then wandering off to get coffee and then coming back to take another look, hoping more cars had shown up in the meantime.

To my surprise, half the vehicles present were camper vans. The price on those varied from $8000 NZD for older, more run down ones to $20,000 NZD for nicer ones (still backpacker camper vans, but they looked like they had a bit more life and many more amenities). About five cars were newer (last five years) and selling for over $30,000 NZD. Finally there were four cars under $6,000. Of these, one had a new WOF.

This was very disappointing to me. I did hear from others that the car fair is slightly bigger in the summer months.

How I actually bought a car in New Zealand

I messaged seven people on Facebook Marketplace. If the car didn’t have a new WOF, I asked the seller if they would consider getting one. If they said no, I said thanks, but no thanks.

Finally, a seller with a car with a brand new WOF messaged me back. I set up a time to test drive the car that evening and then…I reviewed all the rules of the road in New Zealand!

How to Prep for Driving on the Left Side of the Road

I spent two weeks in New Zealand before I began looking for cars. During those two weeks, I spent my time in buses, Ubers, and a host’s car, and I observed their driving. I paid attention to road signs and intersections. But it didn’t feel like enough.

What do I need after I buy a car in New Zealand?

Transfer of Ownership

I met the seller at the post office and filled out a form that the post office provided. Then, I paid $9 NZD for the post office to process it, and walked away with the car instantly in my name.

Simple.

Easy.

A million times better than how it works in the US.

Car Insurance

Car insurance is not required in New Zealand, which I find very strange. However, it is recommended.

Because I bought a cheap car, I only purchased third party insurance. In other words, if I hit another car, my insurance will pay for the repairs of that car, but not my own.

I got quotes from several sites, but in the end AA Insurance was the cheapest at about $200 annually.

I did get a discount because I purchased roadside assistance from AA prior to purchasing insurance.

AA Membership: Roadside Assistance

On the plane, a Kiwi told me that she always buys an annual AA membership for their roadside assistance perk. AA will help if you lock your key in the car, if you get a flat tire, if your battery is dead, and more. For $80 NZD a year.

Since I didn’t know a single person in the country, I figured this was a good thing to have. Additionally, if you purchase your AA membership BEFORE you buy insurance, you will get a discount on your insurance.

Car Phone Holder

New Zealand has strict Hands Free driving laws. And, the roads are often so windy and narrow that you need two hands to drive anyway. Since I knew I was always going to have my GPS going, I bought a mount for my phone right away.

Wrap Up

My experience was one in a million, but hopefully it helps at least one person feel more prepared!