This page explains common issues with cars bought from registered dealers and what rights you have to a repair, replacement or refund.
This page applies to new and used cars bought from registered motor vehicle traders.
Check if your dealer is registered(external link) – Motor Vehicle Traders Register
Common issues with cars bought from dealers
If the car broke down shortly after purchase
Under the Consumer Guarantees Act (CGA), cars from a dealer must be of acceptable quality.
What’s considered acceptable depends on factors such as:
- the car’s age
- the price you paid
- its condition
- how it was described
- how soon the problem appeared.
What you can do
- Return the car to the dealer and ask them to repair the problem.
- If the fault is serious, or keeps happening, you may be able to reject the car and choose a refund or replacement.
If you discover a fault in a car bought on finance
Important: Do not stop making finance payments — the car could be repossessed.
What you can do
- Contact both the dealer and the finance company.
- Return the car to the dealer for a repair.
If the problem is serious, or can’t be fixed within a reasonable time, you may be able to reject the car.
Under the Credit Contracts and Consumer Finance Act, the finance company may also be liable if the dealer arranged finance.
My dealer has stopped trading
If the dealer has stopped trading, you may need to take different steps to resolve the problem.
The dealer needs to fix the problem. If they tried to repair the car but it is still faulty, you may still have rights to a remedy under the CGA.
If the dealer arranged finance and is unhelpful or no longer trading the finance company may be able to help. Particularly if the dealer arranged the finance.
If the finance company is unable to help, consider making a claim with the Motor Vehicle Disputes Tribunal (MVDT).
Make a claim to the Motor Vehicle Disputes Tribunal(external link) – Ministry of Justice
If the car is not of acceptable quality
A car is not of acceptable quality if a reasonable person would not find it acceptable, considering:
- age and condition
- price paid
- what the dealer said or advertised
- how soon the fault appeared.
If the car is not of acceptable quality, you have the right to a remedy under the CGA.
Undisclosed damage discovered after purchase
If the fault or damage wasn’t caused by you, you may claim under the CGA or a warranty. There is no fixed time limit.
What to do if the problem is serious
- You may reject the car for a refund or replacement.
- You may also claim compensation for related costs, such as inspections or towing.
If the dealer says “as is” or “no warranty”
You still have the same rights under the CGA when the dealer says:
- “As is”
- “As is where is”
- “No warranty”.
"No warranty” claims do not remove your rights. Even if the dealer says the car has no warranty, they still must meet their obligations under the CGA.
Dealers cannot use vague terms to avoid responsibility.
However, you generally can’t claim a remedy under the CGA for defects that were:
- clearly explained to you, and
- agreed to before buying.
Misleading use of these terms may breach the Fair Trading Act (FTA).
If the car was advertised or described in a misleading way
A dealer may have breached the CGA or FTA if they gave false or misleading information — for example about:
- mileage
- age
- condition
- ownership
- accident or flood history.
You may be entitled to:
- a refund or replacement, or
- compensation for the difference between what you paid and what the car was worth.
If the previous owner’s debt is attached to the car
Dealers must:
- legally own the car, and
- disclose any security interests on the Consumer Information Notice (CIN).
If a security interest was not disclosed or was incorrect, the dealer — not you — may be responsible.
Find out more about the Consumer Information Notice (CIN) [PDF, 404 KB]
If spare parts are not available
Manufacturers and importers must usually ensure spare parts and repair facilities are available. This should be for a reasonable period after a car is first sold in New Zealand. If this is not the case dealers should make that clear before you buy the car.
If parts are unavailable and you were not told, you may have rights to a remedy under the CGA.
Extended warranties and insurance
Extended warranties or breakdown insurance may cover certain repairs. They do not replace your rights under the Consumer Guarantees Act (CGA).
What to do
Even if you have an extended warranty or insurance, you can still ask the dealer to fix a problem under the CGA.
Extended warranties or breakdown insurance may cover certain defects.
New cars usually also have a manufacturer’s warranty. These are in addition to — not instead of — your CGA rights
What to do if your car has a problem
If any of these common issues apply to you, you may have rights under the CGA.
What to do if there’s a problem with a car bought from a dealer
The laws that protect you
When you buy a car from a dealer in New Zealand, these laws may apply:
- Consumer Guarantees Act (CGA) — acceptable quality, fitness for purpose, and accurate description.
- Fair Trading Act (FTA) — bans misleading or deceptive behaviour
- Motor Vehicle Sales Act (MVSA) — dealer registration, CIN requirements, disclosure of security interests
- Credit Contracts and Consumer Finance Act (CCCFA) — may make the finance company responsible in some situations where a car is bought on finance, particularly if the dealer arranged the finance.
How long you’re covered by the Consumer Guarantees Act (CGA)
There’s no fixed time limit for how long a car is covered by the CGA.
Instead, your rights last for a reasonable time, which depends on things like:
- the age of the car
- how much you paid
- how many kilometres it had travelled
- its condition when sold
- how the dealer described it
- how soon the problem showed up.
In some cases, problems that appear months or even years later may still be covered.