What to Do After Sold or Disposed of a Vehicle in New Zealand

Selling or disposing of your car is a big step, but it doesn’t have to be complicated if you know what steps to take. Here at Taha Auto Group, we want to provide a guide on what to do after you’ve sold or disposed of your car in New Zealand.

Notify Transport Agency of Sale or Disposal

The first thing you need to do is notify the NZ Transport Agency that you’ve sold or disposed of your car. This is an important legal step that transfers responsibility for the car from you to the new owner.

To notify NZTA:

• Complete the Notice of Disposal form online or print and complete the paper version
• The form requires your name, address, plate number, VIN number, odometer reading and date of disposal
• Submit the completed form to NZTA either online, by mail or in person at an NZTA agent

Notifying NZTA ensures:

• Your legal responsibility for the car ends
• Any outstanding fines or penalties don’t remain in your name
• The new owner can legally drive the car once it’s registered to them

Failure to notify NZTA of the sale or vehicle disposal can result in fines, so don’t skip this step!

Here’s the below Form:  Sold or disposed of a vehicle Form 

Step By Step Guide for Notifying NZTA

Cancel Your Insurance

The next important task is to contact your insurance company to cancel coverage for the sold vehicle.

To cancel your insurance policy:

• Call your insurer’s customer service number
• Specify you are cancelling coverage due to sale/disposal of the car
• Confirm the exact date coverage will end
• Request any refund of unused premium
• Obtain a confirmation number for the cancellation

Cancelling the insurance ensures you don’t pay for unnecessary coverage. Most insurers require notification within a certain time period after the sale, so act quickly.

Receive Payment from the Buyer

Obviously an important step is to collect payment from the buyer and provide a receipt, especially if the sale was conducted privately.

For your own protection:

• Do not sign over the title until payment is received
• Accept payment types you can verify, like bank transfer, cashier’s check or cash
• Count cash carefully before providing the title or vehicle
• Only accept payment directly from the buyer – not a third party

Having a solid paper trail helps avoid any disputes down the road.

Sign Over the Title

Once payment is secured, it’s time to officially sign over the title to transfer legal ownership of the car.

To handle the title transfer:

• Fill out the title transfer section on the back of the title certificate
• Include buyer’s name, address and date of sale
• Both seller and buyer must sign and date the title transfer
• Keep a copy of the signed title for your records
• Hand over the original title to the new owner

Remember the buyer cannot legally drive the car until the title is transferred to their name.

Provide Maintenance Records

To help the new owner continue ongoing maintenance, provide any service and repair records for the vehicle. This includes:

• Owners manual
• Service booklet or invoices
• Completed Warrant or Certificate of Fitness
• Receipts for major repairs

Providing maintenance history shows you have cared for the car and may help boost the sale price. The new owner will appreciate these valuable records.

Remove License Plates

In most cases, you will need to remove the license plates before handing over the car.

To remove plates:

• Use a screwdriver to detach the plates from the vehicle
• Keep the plates to put on your next car or return to NZTA
• The buyer must register the car in their name and get new plates

Selling the plates with the car is usually not allowed. Check with NZTA for exceptions.

Cancel Any Automatic Payments

Don’t forget about any automatic payments associated with the sold vehicle. Be sure to cancel any automatic debit payments for:

• Insurance
• Car loan payments
• Registration renewal
• Toll road account
• Maintenance subscriptions
• Satellite radio service (GPS)

Review bank statements to ensure no further payments are processed for the sold car. Failing to cancel direct debits could mean paying for someone else’s car!

Clean Out The Car

Before handing over the keys, do a thorough cleaning and removal of all personal items:

• Clean the interior – vacuum, wash floors, wipe down surfaces
• Clear out any belongings – sunglasses, phone chargers, coins
• Check the trunk, glovebox and under seats for any items left behind
• Remove child car seats and other accessories you want to keep

Giving the new owner a clean interior is a nice gesture they will appreciate. And you don’t want to leave any of your valuables or important documents behind!

Say Your Goodbyes

Selling a car can be emotional. Before driving off for the last time:

• Take a photo with your car for memories
• Go for one final test drive to reminisce
• Give the dashboard a farewell pat
• Shed a tear and wish your car well on its next adventure

While bittersweet, passing your car along to a new owner is often the best option when it’s time to move on. Following these steps when selling or disposing of your car makes the process smooth and headache-free. Just be sure to grab some tissues before you hand over the keys!

At Taha Auto Group, we want to help make selling or disposing of your used vehicle as easy as possible. Please contact us if you have any other questions about the process. We wish you and your car all the best on your next journeys!