Whether it’s your first set of wheels or a much-needed upgrade, buying a used NZ car can be just as stressful as it is exciting. There are so many little things you need to consider, which means there are plenty of opportunities to trip up along the way. Almost everyone old enough to have gone through the experience a few times has a horror story of thinking they were getting a deal but ending up with a lemon that ruined their commute and bank account all at once.
With our ultimate guide to buying a used car in 2024, you can avoid becoming the next victim in this generational horror story. This guide will cover what to know before buying a used car in NZ. From budgeting and research to test driving and final negotiations, we’ll give you tips on the process of finding a car from start to finish.
New Trends Shaping NZ’s Used Car Market in 2024
You’ll want to start your search for a new car with a solid understanding of the current market. The New Zealand used car market worth is estimated at USD 289.06 million in 2024 and is expected to reach USD 386.83 million by 2029. It has been a bit of a rollercoaster ride over recent years, but 2024 is shaping up to be a real barnstormer!
After a couple of rocky pandemic seasons, the market bounced back strongly in 2021, and 2022 saw steady growth across the board. That upward trajectory has levelled off a tad lately; the latest stats show sales dipping 4.6% in February versus the same period last year.
But peek under the bonnet, and you’ll find some fascinating trends powering the market in 2024. Toyota and Mitsubishi are still the biggest movers and shakers, closely followed by the Kia. However, some underdog brands like Ford and Nissan are clawing back serious market share, too.
The real game-changer in 2024? The electric revolution is finally hitting full charge! More and more Kiwis are embracing plug-in hybrid and full EV models. This significant shift towards sustainable transportation means EVs are now becoming a real player in the NZ used car market.
Purchasing Privately or Through a Dealer?
The first question to ask yourself when beginning your search for a new car is, where will you look—with private sellers or dealers? Traditionally, most used cars have been sold and purchased privately rather than through a dealer. However, Trade Me’s State of the Nation Report 2023 shows that public-to-public sales were down last year, and dealership sales were on the rise. A trend we believe will continue into 2024.
So, what’s the best option for you? Sure, a private sale can seem like the ultimate bargain, with no dealer overheads or markups. But tread carefully, as there are plenty of pitfalls to dodge, too. With private sales, you’re essentially going in blind. No warranty safety net, questionable service histories, and potential legal potholes can turn that “steal” into a lemon.
Your best bet is going through an accredited dealership like Portage Cars. While it might cost a few more dollars upfront, the benefits are huge. We take all the guesswork out by conducting comprehensive pre-purchase inspections, providing detailed vehicle histories, and offering bulletproof warranties. That priceless peace of mind makes the small extra investment a total no-brainer.
Setting Your Budget
Before you get carried away dreaming of your next set of wheels, getting a firm handle on your realistic budget is crucial. Your budget will be the road map you use to find the right car for you. And we’re not just talking about the sticker price here; there is a stack of additional upfront and ongoing costs to factor in, too.
Upfront, you’ll need to budget for getting the car registered, insured, and warranted. That’s on top of the purchase price itself. Then there are the running costs: fuel, regular maintenance, WOFs, and any repairs that will inevitably pop up over time. Those can really add up, especially for gas guzzlers!
Is Financing a Car the Solution for You?
After totalling the entire price of a used car, you may start suffering from sticker shock. If that upfront lump sum seems too steep, financing a car could be a smart solution. More and more Kiwis are opting to break down the total cost of buying a used car into manageable monthly instalments. Dealerships like Portage Cars often offer competitive finance options tailored to your circumstances. Remember, it’s about balancing your dream car with a realistic financial plan, ensuring you don’t bite off more than you can chew.
Choosing the Right Car for You
While guides like the most popular cars of the last year can help you understand what makes and models are leading the market, popularity doesn’t always align with preference. What’s more important is knowing exactly what you need from your perfect car. Whether prioritising space for family, fuel efficiency for economic commuting, or advanced technology for a sustainable future, the key is finding a vehicle that resonates with your requirements and preferences.
Key Considerations When Looking for a New Car
Fuel Efficiency
Fuel efficiency should be high on the priority list when choosing your next set of wheels. With gas prices yo-yoing unpredictably, a thirsty guzzler could seriously put a dent in your wallet over time. According to a Carwow report, the Mazda 2, Suzuki Swift, and Kia Picanto round out the top three most economical petrol cars of 2024.
When looking for a fuel-efficient used car, calculate the running costs for different models based on your typical driving distances. Going for a fuel-efficient car means extra savings that could be better spent elsewhere.
Reliability
For many used car buyers, reliability should be the top priority. After all, you’re investing hard-earned money into a vehicle you’ll be depending on daily. Do your research to identify models with a proven reputation for longevity and low maintenance needs. A reliable used car means fewer surprise repair bills and less stress overall. According to a Consumer Reports study, Lexus, Toyota, and Mini are your best bet when searching for a reliable used car. While flashy features are nice, choosing a dependable set of wheels you can trust is invaluable.
Safety Rating
When shopping for a used car, safety should never be compromised. Take the time to review the safety ratings for any models you’re considering. New Zealand’s ANCAP system rigorously tests vehicles for occupant protection as well as vulnerable road user safety features, rating vehicles on a one to five-star scale. Only go for top-rated vehicles that prioritise your family’s well-being on the road. A high safety score gives invaluable peace of mind that your used purchase will keep you secure if the unexpected occurs.
Electric vs Petrol Cars
The choice between electric or petrol power has become a big one when buying a used car in 2024, and there’s plenty to weigh up. EVs are the sustainable frontrunners, offering a high-tech driving experience. However, range anxiety and patchy charging infrastructure could still be deal breakers for some. Trusty old petrol cars may be dinosaurs, but they afford convenience and a familiarity that many Kiwis aren’t ready to give up just yet.
According to an EVDB report in 2023, EVs and plug-in hybrids occupied over 27% of the vehicle market share, showing Kiwi’s interest in going greener with their car choices. While there has been a huge dip in this percentage since the start of 2024, we see this number bouncing back sooner rather than later. Whichever way you swing, both options have pros and cons in 2024.
How Will You Use Your Car?
Before pulling the trigger on a used car, it’s crucial to honestly assess how you’ll be using the vehicle. Will it just be a daily commuter, or do you need cargo capacity for activities and adventures? Are you regularly carrying kids and pets, or is it just you? Knowing the demands you’ll place on the car upfront ensures you buy one that can genuinely meet your needs and lifestyle without compromises. Don’t get dazzled by excess features you’ll never utilise.
The Pre-purchase Inspection Checklist
So you’ve studied the field, and a certain make/model has caught your eye. Don’t get ahead of yourself! A proper inspection is essential before locking anything in.
First up, give the exterior a thorough once-over from top to bottom. Uneven paint could indicate a dodgy respray job. Check those panel gaps, too; any major dents or rust patches are a big red flag. Under the hood, the engine should look clean and free of grime, leaks, or corrosion. While you’re there, check all fluids are topped up too.
Last but not least, examine all the paperwork. You’ll want to see a current WOF, along with a complete and up-to-date service history. Any gaps or missing logs are grounds for suspicion. Pay for an ownership history report to reveal any owed finances or other issues.
Test Driving is More Than Just a Spin
Test driving any used car you are considering buying is crucial. It’s more than just a spin around the block; it’s the final test to see if the car is right for you. Extend your route beyond the basics; it’s crucial to spend enough time behind the wheel to understand the car’s dynamics in various conditions. Pay attention to how the car handles twists and turns, its acceleration smoothness, and braking efficiency.
Tune your senses to the vehicle’s sounds and reactions over different road surfaces. Be alert to any peculiar noises, odd vibrations, or hesitancy during gear shifts. These could be tell-tale signs of underlying issues. Trust your instincts; if something about the car’s performance doesn’t sit right with you, it might be wise to consider other options. Remember, the test drive is your best chance to gauge if this car is the right fit for you.
Test Driving Checklist:
- Pre-Drive Checks: Before starting, check for any visible damages, fluid leaks, or tyre issues.
- Engine Start: Listen for unusual sounds when starting the engine.
- Brake Test: Ensure the brakes respond promptly and don’t cause the car to pull to one side.
- Steering: Check for smooth steering response without excess play or vibrations.
- Acceleration and Gear Shifts: Assess if the car accelerates smoothly and gear shifts are effortless.
- Handling: Pay attention to how the car handles turns and curves.
- Road Surface Response: Observe how the car behaves in different road conditions.
- Noise Check: Be aware of any unusual noises or vibrations.
- Instrument Panel Check: Ensure all gauges and warning lights function correctly.
- Comfort Assessment: Evaluate seat comfort, visibility, and ergonomics.
Finalising the Deal
When it’s time to seal the deal, enter negotiations armed with knowledge and confidence. Dive into the conversation about pricing, but don’t shy away from discussing warranties and any additional features or services that might be included. Enquire about current deals and if the price is the absolute best they can do. Dealing with dealers is a dance of assertiveness and adaptability; it’s about knowing when to push and when to compromise.
Paperwork Required to Complete Vehicle Purchase
Crossing the T’s and dotting the I’s in paperwork is an important step in the finalising process. Ensure all the necessary documents are in order, including transferring the vehicle’s ownership, checking that the Warrant of Fitness (WOF) is current, and confirming registration details. These documents are the final pieces in the puzzle of car ownership.
Drive off in Your New Car with Portage Today
With this guide to buying a used car in New Zealand steering you in the right direction, it won’t be hard to find your way to the perfect set of wheels.
The used car gurus at Portage Cars have been helping Kiwis like you get it right for decades. Whether you need insider advice or just a second set of eyes, we’re here to put you in the driver’s seat that fits just right. We have plenty of NZ cars for sale, ready to be driven off the lot. Dream it, find it, drive it with Portage Cars!
