My Ultimate Guide on Buying a Used Car in New Zealand on Working Holiday Visa!

Originally published on February 12, 2025 | Last updated on February 16, 2025

So, you’ve moved to New Zealand on a working holiday visa, and you want to get around. And you figure out that public transport in New Zealand (especially outside major cities) is pretty insufficient to get you round! How then will you be able to see all the beautiful nature New Zealand has to offer? I was in the same boat. Buying a car turned out to be pretty straightforward – especially when you have a friend who works at NZTA (New Zealand Transport Agency)! Here’s how to buy a (used) car in New Zealand, along with some useful tips to help you get on the road.

Why Buy a Car in New Zealand?

Public transport in New Zealand is decent in the major cities such as Auckland, but if you want to explore the stunning landscapes, visit remote beaches, or find work in rural areas, having your own vehicle is a game-changer. Many working holidaymakers buy a car or van to travel and work while on the move and sell them again as they move.

When we moved to New Zealand, our friend advised us to buy a car as soon as possible. We live in Hamilton which is the 4th largest city in New Zealand, and only 90 minutes away by car to the airport. Yet, there is NO public transport other than infrequent coaches in between Hamilton and Auckland Airport!! Isn’t that crazy. It took us 6 hours between all the waiting and transferring to get to Hamilton by the time we arrive. Not something we prefer to do after 37 hours of flying, but there was really not much option. We also find that since we got a car, day trips became infinitely easier, like going to Taupo or Roturua on a Saturday, or to Auckland.

Choosing the Right Car

Before buying, I had to decide what kind of car suited my needs. Here are some common options:

• Small Car: Great for city driving and fuel efficiency. Perfect if you’ll be based in one place for a while. However – remember that there are a lot of Japanese imported cars, and they are smaller than the European/Australian counterpart!!! More on that below.
• Medium Cars: A popular choice for backpackers because you can sleep in the back if needed.
• SUVs are quite common by the New Zealanders, but of course they are not as economical to run. I find there’s a lot more SUVs than in the UK here, though it’s getting more common there as well.
• Campervan: Ideal for road trips and those planning to live out of their vehicle.

We ended up with a sedan, Mitsubishi Lancer 2012 that is NZ made instead of Japanese imported. When we first looked for a car, I looked for a small car as that’s what we are used to in the UK. I’ve always wanted to own a Honda Jazz, so I thought we’d look at a few Honda Fit (Honda Jazz equivalent in Japan). All looked good until …. my husband’s leg is too long for the car! Haha!

Where to Buy a Used Car in New Zealand

There are several places to look for a car:

• Facebook Marketplace & Backpacker Groups: Many travellers sell their cars when they leave the country. In fact, even the New Zealanders use Facebook Marketplace to sell their cars too.
• TradeMe: New Zealand’s version of eBay or I’d say also Gumtree, with lots of listings for second-hand cars. However, TradeMe can be a bit iffy to use outside New Zealand – so if it doesn’t work, you may have to get to New Zealand first before you can register for an account. I learned the hard way after getting blocked by administrators!
• Car Fairs: Cities like Auckland and Christchurch have car fairs where you can see multiple cars in one place – however I have never used them.
• Used Car Dealerships: These tend to be more expensive but sometimes offer warranties. A big one in New Zealand is called Turners which is where we got our car from.

Things to Check Before Buying

Once I found a car I liked, I made sure to check:

• WOF (Warrant of Fitness): This is New Zealand’s safety inspection (MOT equivalent in the UK). A valid WOF means the car is roadworthy.
• REGO (Registration): Make sure it’s up to date, or factor in the cost to renew it. You can check for the Rego cost of your car through the RightCar website.
• Mechanical Condition: If you’re unsure, get a pre-purchase inspection from a mechanic. We got our cars through Turners, so they’ve done the checks for us. A mechanical check sheet is supplied with each car.
• Kilometres Driven: High mileage isn’t always bad, but check the service history. We got our car for 160K km which is not too bad. I personally think avoid a car above 200K km.
• Ownership History: Ensure the seller legally owns the car and isn’t selling a dodgy vehicle. Anything through Turners or used car dealership should already been checked already. However if you are buying it through Facebook Marketplace or TradeMe, make sure you check the NZ police site (free). If you want a more comprehensive history including the history of the vehicle, CarJam was quite helpful, but you have to pay.
• Car Safety Rating: You can check a car safety rating at RightCar website. My friend (who works in NZTA) recommended to buy a car with safety rating 4 and 5, and avoid anything 2 or below.

I of course took the car for a quick test drive. Because I got it from used car dealership, I didn’t do any further pre-purchase agreement. I’m also covered by the CGT as the advertisement for the car says “the vendor is in trade” – for more details you can check the consumer law information from Turners website directly. Basically to me sounds like if the vendor is in trade, you’re covered, but by private seller, you’re not covered.

How to Register the Car in Your Name

Since I bought it from a dealership, they did all the registration right there for me. However, if you get it through TradeMe or Facebook Marketplace, it seems quite straightforward to register the car. Follow the steps from NZTA here. If you don’t have an NZ driver license, you can’t do it online and have to do it in person. However, fret not, it seems quite straightforward, you can do it in a few places including NZ Post.

Car Insurance: Is It Necessary?

Unlike some countries, car insurance isn’t legally required in New Zealand, but I highly recommend getting at least third-party insurance. There are plenty of options like AMI, AA, State, Cove, Tower. I went with third-party cover for peace of mind. AA I found to be the most expensive while AMI seems to be the most competitive for me, but it will vary depending on your situation. AA quoted me $21 per month while AMI quoted me $13 per month, as comparison. It definitely pays to shop around. As you can see, car insurance is so much cheaper compared to the premiums we pay in the UK, so it makes complete sense.

Especially for us foreign driver, foreign drivers have a higher chance of being involved in a crash compared to local driver. Makes sense as we are probably not used to driving in New Zealand. As the car insurance cost is so low, it makes complete sense to have at least a third party insurance. I decided against comprehensive car insurance as, the car I have is not valuable enough to warrant a comprehensive car insurance. For reference, I bought my 2012 Mitsubishi Lancer with 159K km on it, for around $5000 (excluding auction fees), or about $5500 total.

Fuel Costs

From looking around, supermarket petrol prices in Pak’n’Save seems to be cheapest, especially you can get discount of 6p/L if you shop there – currently $2.50/L. Outside big cities, Gulf seems to be the cheapest, actually near my house I think is about $2.6? You can also check for fuel prices with Gaspy, but I’m way too lazy for that haha.

Selling the Car Before You Leave

A lot of people sell their cars before heading home. Seeing how easy it is to get a car, I am hoping selling a car wont be too difficult later on. I haven’t sold a car yet – but I’ll update you when I do! I am hoping that we will be able to recoup most of the purchase price of the car, fingers crossed. It’ll be dependant on the demand at the time as well.

Final Thoughts

So far buying a car seems to be a great decision. It gives so much freedom to explore New Zealand and get about as public transport can’t be relied on. If you are considering it – definitely do your research online, check the car properly but hopefully this guide helps!