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Thread: What do I need to buy a car?

  1. #1
    Join Date
    Jun 2009
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    Dunedin
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    Default What do I need to buy a car?

    One of the first things we plan to do after we arrive is buy a car. We'd prefer to buy from a dealer rather than an individual (via trademe), and plan to finance the car rather than paying it all immediately.

    What do I need in order to buy a car (from a dealer, with financing)?

    1) NZ driver's license?
    2) NZ bank account?
    3) NZ mailing address?
    4) residential address?
    5) phone?
    6) IRD number?

    Thanks!

  2. #2
    Join Date
    Oct 2007
    Location
    Christchurch
    Posts
    384

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    1) NZ driver's license? - no
    2) NZ bank account? - no
    3) NZ mailing address? - yes, the dealership will register the car in your name
    4) residential address? - no
    5) phone? - no
    6) IRD number? - no

  3. #3
    Join Date
    Jun 2009
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    Dunedin
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    Wow, so the only thing I need is a NZ-based mailing address?

    Do you think Post Restante will count? Or should I try to get a formal Post Office box first? If I can't get a PO box immediately, do you think a hotel's address would suffice? Or maybe ask a friend to accept mail for me until I can get my own box? How formal does a mailing address have to be over there?

  4. #4
    Join Date
    May 2007
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    4,455

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    Quote Originally Posted by denalipop View Post
    Wow, so the only thing I need is a NZ-based mailing address?

    Do you think Post Restante will count? Or should I try to get a formal Post Office box first? If I can't get a PO box immediately, do you think a hotel's address would suffice? Or maybe ask a friend to accept mail for me until I can get my own box? How formal does a mailing address have to be over there?
    We bought a car when we first arrived and used the hotels address which was clearly sufficient. You will of course need to have this updated as soon as you move.

    We didn't need finance for the purchase though, and it is this that is most likely to give you some problems. They may want a proper residential address, will need some additional forms of identification and normally will require someone else who lives in NZ to act as a reference (do you know anyone in NZ?). They will also want proof of income which may be complicated by working for a US company.

    Ian

  5. #5

    Default

    To buy a car and change the ownership into your name you just need ID and a physical address. A hotel would be fine.

    To Finance a car you will need.

    A Job in NZ or proof of income i.e. overseas pension etc..
    A NZ Bank Account, as most banks and finance companies here insist on direct debiting payments from your bank account.
    A residential address, proof of ownership or lease and a utility bill in your name.
    At least 2 references in NZ.
    Several months of bank statements.
    A down payment of between 20 and 40%.

    NZ has a "relationship banking" philosophy, they won't look at or consider your credit report from another country. Your income/bank account history, length of time at your job and residence will be key factors. In NZ the Credit Report only shows negatives i.e. defaults and inquiries. Your timely payments are not reported.

    The Bank or Finance company will likely charge a "booking fee" upwards of $500 just to get the loan, and the interest will likely be high i.e. upwards of 18%, probably in the area of 25% being new to NZ. It's actually cheaper to buy a car with your credit card than to get auto financing. Low interest credit cards are carrying a rate of about 12% at the moment.

    Here's some advice from someone who's been there and done that.

    Buy a cheap car off trademe or from Turners Auction and pay cash. There's plenty of roadworthy cars in NZ for between $1000 - $3000 NZD.

    Once your settled in, have a permanent job, long term residence, bank account etc.. then look into selling the cheap car and buying a newer car with financing.
    Last edited by constablechuck; 10th September 2009 at 02:05 PM.

  6. #6
    Join Date
    Jul 2008
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    North Canterbury, New Zealand
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    Quote Originally Posted by constablechuck View Post
    Buy a cheap car off trademe or from Turners Auction and pay cash. There's plenty of roadworthy cars in NZ for between $1000 - $3000 NZD.

    Once your settled in, have a permanent job, long term residence, bank account etc.. then look into selling the cheap car and buying a newer car with financing.
    Wise words! Better still, keep the cheap car as long as possible and save up the money to buy the next one. The best type of finance is 100% deposit and NO monthly payments.

  7. #7
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    Buy a cheap car off trademe or from Turners Auction and pay cash. There's plenty of roadworthy cars in NZ for between $1000 - $3000 NZD.
    This sounds like a great idea to me. I recently sold my old car (1985 Honda Civic) for $550 USD and would love to have something like that in NZ.

    We'll be looking for cars in Nelson. Do you think dealers there are selling cars in that price range? If so, would they let us buy one with a credit card?

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