Understanding the Importance of Changing Car Ownership in NZ

If you're buying or selling a car, it is crucial to know how to change car ownership NZ. If you fail to do so, you could face significant challenges by not re-registering the vehicle under the new owner’s name, which can lead to unexpected fines and potential legal issues. In this article, we'll give you everything you need to know to change vehicle ownership in Aotearoa.

Methods to Transfer Car Ownership in NZ

Transferring car ownership can be accomplished easily and inexpensively, often costing less than $10. Here are the main ways you can transfer ownership.

Online Transfer

The most convenient method is via the NZ Transport Agency (NZTA) website. This can be done at any time, provided both the seller and buyer have a New Zealand driver's licence. The process is fast, allowing the transfer to occur within minutes. Both parties must complete the necessary forms together before the vehicle is taken by the buyer.

Over the Counter

For those who do not possess a New Zealand driver's licence or prefer a more personal interaction, changing car ownership can be conducted over the counter at any NZ Post office or licensing centre. The seller must complete an MR13A form, and the buyer needs to fill out an MR13B form. This method offers more payment options and allows the use of other forms of ID for those without a New Zealand driver licence, such as a passport.

Considerations When Buying a Vehicle

Before finalising the purchase of a vehicle, it is imperative to:

  • Check for a Valid Warrant of Fitness (WoF): A WoF should be no older than one month at the time of sale, though this can be waived if a written agreement is obtained from the buyer.
  • Look for Road User Charges (RUC): This is especially important for diesel vehicles. Ensure that the vehicle's road user charges are up to date to avoid incurring hefty fees. If the vehicle has none, you will need to pay road user charges to legally be on the road.
  • Verify the Registration: Always check the registration ticket to ensure it reflects the current status and that there are no outstanding fees.

Who is Responsible for Transferring Car Ownership?

The responsibility of transferring the ownership lies with both the buyer and the seller. It is the buyer's responsibility to pay for the change, while the seller must ensure that the buyer has completed the necessary paperwork, as evidenced by an email confirmation or a stamped MR13B form.

If you're a seller, don't just trust your buyer to change ownership when they feel like it. Until NZTA have been notified of the sale, you remain the legal owner of the vehicle, and as such, are responsible for any fines or tickets that are incurred by the buyer.

The best approach to avoid this is to have both yourself and the buyer complete the required forms at the time of the sale and then submit the Notice of Acquisition through the NZTA website. The Notice of Acquisition will require the buyer to provide their name, date of birth, driver licence number, and the vehicle's plate number.

Debunking Misconceptions About Car Ownership Transfer

It is a common misconception that a change of ownership document alone confirms legal possession of a vehicle. In reality, a well-documented receipt should be obtained as it serves as better legal proof. This receipt should include details like the names of both parties, the date of the sale, the vehicle’s registration number, make, model, and the odometer reading.

Procedure for Buying and Selling Vehicles

  • If you have bought a vehicle: Notify the NZTA immediately by filling out a Notice of Acquisition and registering the vehicle online, or by visiting an agent and completing the MR13B form. You will receive a Certificate of Registration shortly after.
  • If you have sold a vehicle: It is legally mandatory to inform the NZTA right away. The simplest way to do this is online, but if you are a company or do not have an NZ driver licence, you will need to contact the NZTA directly.

By adhering to these guidelines, both buyers and sellers can ensure a smooth transition and avoid any legal or financial complications associated with the change of car ownership in NZ.

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