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Buying a car > Things to think about > Flashcards

Things to think about Flashcards

1
Q

What are the two options for buying a car?

A
  • Private Sale

- From a Business

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2
Q

What are the pros and cons of each?

A

Private sale

  • Cheaper than from a business
  • Questions about authenticity: Is the information accurate

Business

  • Cost more (running an operation)
  • More consumer protections
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3
Q

What is a CIN?

A

Consumer Information Notice

- Sums up information about the vehicle, any mechanical issues

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4
Q

What would you need to check with any vehicle before you buy it?

A
  • Get an inspection.
  • Is there money owing on the vehicle? If there is, it could be repossessed and you are not compensated.
  • Is it stolen? If so, it could be claimed back and you’re not compensated. Check police listings
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5
Q

What do you need to think about if looking at an extended warranty?

A

What benefits does it add?The Consumer Laws in New Zealand provide a lot of coverage.
What are the requirements to of the warranty (e.g. is there an excess for claims, only certain mechanics can be used)

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6
Q

What are examples of onroad costs?

A

Warrant of Fitness
Vehicle Registration
Road User Charges

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7
Q

What are other terms used for an extended warranty?

A

Mechanical insurance
Breakdown insurance
Mechanical warranty
Mechanical breakdown isnuarance

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8
Q

If a business tells you an extended warranty is free, what might that be sign of?

A

That the warranty is included in the price. If so, check what other businesses are selling the model for

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9
Q

What acts come into play with buying a car?

A

Consumer Garutees Act
Fair Trading Act
Motor Vehicle Sales Act
Sale of Goods Act

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10
Q

What options do you have if you’re looking at buying a vehicle with known problems?

A
  • Negotiate price

- Ask business to fix these. Be sure to get this in writing.

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11
Q

What do you want to consider if you’re considering an extended warranty?

A 
What parts and problems does it cover.
What does it exclude?
Do I pay an excess, and if so, how much?
What are rules about servicing?
Do I need to use a certain mechanic?
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12
Q

What area does the Consumer Guarantees Act cover?

A

It covers the quality of the vehicle needs to meet certain standards.

It’s covers vehicles brought for personal use.

It enforces the following:

  • Vehicle must be acceptable quality given factors
  • Must suit purpose you tell the business you need it for
  • Must match any description given about it
  • Must be legally sold
  • Must match a sample or demonstration model if provided
  • If no agreement on price, it must be a reasonable price
  • Spare parts and repair facilities must be available
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13
Q

What is meant by acceptable quality in consumer guarantees act?

A
  • It’s fit for purpose
  • Not have any minor faults
  • Acceptable in appearance and finish
  • Safe to use
  • Durable
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14
Q

What over factors come into play with the consumer guarantees act?

A
  • Type of vehicle, distance travelled, age, engine size
  • Price paid
  • Information provided about the vehicle
  • What business told them about the vehicle
  • How much it had been used since purchase
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15
Q

What does the Fair Trading Act cover?

A

What a business tells you about a vehicle.

  • Unlawful for a business to mislead or decive you
  • All statements must be true
  • Business must attach a CIN to vehicle
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16
Q

What is the Sale of Goods Act about?

A

This Act comes into play when the Consumer Guarantees Act does not apply.

It will apply if a vehicle is brought for business purposes.

Goods must be merchantable quality and fit for purpose
Seller must have title (The right to sell the product and no money owing on the product)
Sellers can escape liability under the Sale of Goods Act by contracting out at time of sale

17
Q

What does the Motor Vehicle Sales Act cover?

A

It covers trader registration and complaints.

It means:

  • a motor vehicle trading business must be registered
  • They must attach a CIN to a vehicle

It also established a disputes tribunal to decide on complaints

18
Q

What’s the situation with Warrant of Fitness when I buy a vehicle?

A

All sellers must ensure a vehicle has a warrant of fitness issued no more than 1 month before the date the vehicle is delivered to a buyer.

If there’s no current warrant the vehicle is purchased As is, where is. The buyer must give the seller a written undertaken it won’t be driven except for the purpose of getting a new WOF.

19
Q

What do you need

A

Check odometer (however always the risk it’s been round back)
Vehicle condition
Signs of rust / damage

20
Q

How many days after your purchase a vehicle do you have to change the registration?

A

7 days

Buying a car (1 decks)

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