Car Buying Scams in New Zealand

New Zealand's used car market is generally safe, but its size and the volume of private sales create opportunities for dishonest sellers. Scams range from subtle misrepresentation to outright fraud, and they affect buyers at every price point. Here are the most common scams and how to protect yourself.

Curbsiders (Unlicensed Dealers)

A "curbsider" is someone who buys and sells cars as a business but poses as a private seller to avoid the legal obligations that come with being a registered motor vehicle trader. This is illegal in New Zealand under the Motor Vehicle Sales Act 2003.

Curbsiders are dangerous because they strip away your Consumer Guarantees Act protections. When you think you're buying privately, you have limited legal recourse. But if the seller is actually operating as a trader, they should be registered and bound by the CGA.

How to Spot a Curbsider

• They have multiple vehicles listed for sale at the same time across Trade Me, Facebook Marketplace, or other platforms.
• The car is not registered in their name — they may claim to be selling "for a friend" or "for a family member."
• They want to meet in a public car park rather than at their home address.
• They can't provide a detailed history of the car because they haven't owned it long.
• They have a very polished sales pitch for someone supposedly selling their own car.

If you suspect someone is a curbsider, you can report them to the Motor Vehicle Traders Register (MVTR) operated by the Ministry of Business, Innovation and Employment.

Odometer Rollback

Odometer tampering — winding back the mileage to make a car appear less used than it is — remains one of the most common and costly scams in the NZ market. It's particularly prevalent with Japanese imports, where the odometer may be wound back before export or after arrival in New Zealand.

A car with 180,000 km on the clock that's been wound back to show 90,000 km could be worth thousands more than its true value. More importantly, it means the engine, transmission, and other components have significantly more wear than you'd expect, leading to higher maintenance costs and earlier failures.

How to Detect Odometer Fraud

• Check the WoF odometer history on CarJam. The readings should increase consistently over time. Any sudden drops are a clear red flag.
• For Japanese imports, compare the current reading to the odometer reading on the Japanese export inspection or auction sheet.
• Look at the physical wear on the car — heavily worn pedals, a shiny steering wheel, and a saggy driver's seat don't match a car with low kilometres.
• Have a mechanic assess the overall wear of the engine and drivetrain components.

Deposit Scams

Deposit scams typically happen online. A seller lists an attractive car at a great price, often claiming they're relocating, moving overseas, or in the military — any story that explains why they can't meet in person. They ask for a deposit to "hold" the car, often requesting bank transfer or a non-reversible payment method. Once the deposit is sent, the seller disappears.

Red Flags

• The seller won't meet in person or let you see the car before paying.
• They insist on bank transfer rather than cash on collection.
• The price is significantly below market value.
• They create urgency — "someone else is also interested" or "I need to sell by Friday."
• The listing uses photos that look too professional or are stolen from other ads (reverse image search can reveal this).

The golden rule: never pay a deposit for a car you haven't seen in person, and never transfer the full amount until you've inspected the vehicle and verified the seller's identity.

Online Listing Scams

Beyond deposit scams, online platforms are used for various other fraudulent schemes. Fake listings using stolen photos are common on Facebook Marketplace, where verification is minimal. Some scammers clone legitimate Trade Me listings and direct buyers to communicate off-platform, where there's no buyer protection.

• Always communicate through the platform's messaging system where possible — it creates a record.
• Verify the seller's Trade Me feedback and account age. New accounts with no history are higher risk.
• On Facebook Marketplace, check the seller's profile for signs of a real person — post history, friends, and activity.
• Be suspicious of listings that are re-posted frequently or that disappear and reappear with minor changes.

Too-Good-to-Be-True Pricing

If a car is priced well below market value, there's usually a reason. It could be stolen, have undisclosed damage, carry hidden finance, or the listing could be an outright scam. While genuine bargains do exist — motivated sellers, estate sales, trade-in situations — a price that's 20 to 30 percent or more below comparable listings should trigger extra scrutiny.

• Compare the asking price with similar vehicles on Trade Me and other platforms to establish a realistic market range.
• Ask the seller directly why the price is low. Legitimate reasons (moving overseas, need a quick sale, minor cosmetic damage) should be verifiable.
• Run a full car history check including PPSR, stolen check, and odometer history.

How to Protect Yourself

The best defence against car buying scams is a combination of scepticism, due diligence, and patience. Here's a summary of protective measures:

• Always inspect the car in person before paying anything. Meet at the seller's home address, not a car park.
• Verify the seller's identity. Ask to see their driver's licence and confirm it matches the registered owner on the vehicle's records.
• Run a PPSR check to confirm there's no finance owing on the vehicle.
• Check the odometer history on CarJam and compare it to the physical wear on the car.
• Get a pre-purchase inspection from an independent mechanic or vehicle inspection service.
• Don't be rushed. Legitimate sellers will give you time to make a decision. Pressure is a scammer's tool.
• Pay securely. For private sales, cash on collection (with a receipt) or a bank cheque are the safest options. Avoid paying the full amount by bank transfer before you have the car.
• Trust your instincts. If something feels off — the seller is evasive, the story doesn't add up, or the deal seems too good — walk away. There will always be another car.

If you've been the victim of a car buying scam, report it to the NZ Police, the Commerce Commission, and (for issues with registered traders) the Motor Vehicle Disputes Tribunal. For more advice on making a safe purchase, explore our full car buying guide.