# Buying/selling car or lease



## langroberte (Feb 3, 2015)

We will be in NZ for 18 months. Is it better to buy a car and then sell it when we leave? Or should we consider leasing instead? My initial research shows that auto loans have high interest rates in NZ. I'm also wondering where I could easily sell the car when we leave? I don't want to be stuck with a car that I can't sell prior to moving back home after the 18 months is up.

Thanks


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## Kimbella (Jul 4, 2013)

I think you'd be better off purchasing a small car or station wagon, late model, through TradeMe, rather than leasing something that is likely to be expensive, and have limits to the mileage you can drive without penalty.

Generally speaking, you should be able to pick up a late model car -- late 1980's to mid/late 1990's for under $2k, easily. Just a few months back we sold a 1998 Toyota station wagon in perfect working order for $1k. Nothing pretty to look at--body was pristine but boring and basic (as are most of the daily commute cars here in NZ), nothing flash inside, but was clean, in good repair, and again, very basic -- no leather seats or heat warmers, etc. However, this car accumulated many thousands of kms with us as owners and never failed a warrant of fitness, and never required any time in the shop. You'll find that the cult of car ownership is profoundly different than in the US, where cars are often a symbol of your financial status. Totally NOT the case down here, people just care that the price is right, that it's reliable, and won't become a money pit. When you are ready to sell it, put it back on TradeMe for a fair price and it should sell the first time you list it. 
BTW, if you have a region blocking extension on your web browser, it should allow you to view the TradeMe website here in NZ, where you can brows the "motors" section to get an idea on prices, etc.
Cheers
Kim


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## escapedtonz (Apr 6, 2012)

It'll definitely be cheaper to buy a used car and run it for 18 months than leasing a car or paying for a long term hire car. Which way you decide to go is entirely up to how comfortable you are with an older car than a new or near new car.
Insurance is cheap, maintenance and the mandatory warrant of fitness isn't expensive and road costs for vehicles isn't that expensive - currently $278 per annum and going to drop from July 1st 2015 as ACC have reduced their element of the charges by an average of 41%.
People's attitudes to vehicles here is completely different to what I had been used to for many years. In the UK, a car is a status symbol for an individual or family and most people want to keep up with the Jones's and maintain as new a car as possible with a decent badge on the bonnet like BMW or Mercedes/Audi/VW etc. They also want to change it regularly to keep up with the trend and having new technology.
In NZ, no one seems to care what car they drive. It's a means to get from a-b so many people drive, maintain and retain older cars till they are run into the ground.
Only a few days ago a colleague picked me up as we were car sharing and he'd been running his Toyota Caldina station wagon for over 10 years and it had 460 000KM's on the clock and still going strong and he had no desires to get rid in the near future unless it started costing him money.
Interest rates here for finance is high so you will pay through the nose if you want to borrow to finance a car purchase. The financial institutions may also add a premium due to your visa status and the fact you are only here temporarily - it's all about risk!
If you did buy a car you shouldn't have any issues selling it on at the end of your time here. You can always take it to a second hand car dealer for a cash sale and you can always take it to the auction house who will either auction the car off on your behalf or buy it off you cash. It's generally easy to sell a car just buy leaving it at the side of the road with a FOR SALE! sign in the window. So long as the price is right it'll go quick.


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## Homesickkiwi (Feb 5, 2015)

*AA check*

Buying a used car from trademe is a great idea and a common one amoung tourists to NZ, I would reccommend getting an AA check done before purchasinf so you don't end up with 'lemon' that will cost you big $$$ to fix


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