Ensure any representations you make about price are clear, accurate and unambiguous.
If you offer extended warranties (including mechanical cover) you must meet the disclosure requirements, including providing a summarised comparison between the Consumer Guarantees Act 1993 (CGA) guarantees and the protections provided by the extended warranty.
Do not make any claims about the vehicle you do not have reasonable grounds for.
Do not advertise a road-worthy vehicle for sale with statements like ‘as is where is’, ‘end of life vehicle’, ‘for spare parts only’ or ‘without any guarantee or warranty’. These types of statements can mislead possible buyers about their CGA rights. They imply the CGA does not apply and the buyer has no recourse against you for undisclosed problems with the vehicle.
Do not claim a vehicle has been checked, appraised or approved, for example by a mechanic or the Automobile Association, if it has not been, or it was not done recently.
Do not claim to be selling a vehicle privately when you are a person in trade. Many factors can be relevant to whether you are “in trade” but if you regularly sell vehicles or purchase vehicles with the intention of on-selling them, you are likely to be “in trade” under the Fair Trading Act 1986 (FT Act).
Selling vehicles online
If you sell vehicles via the Internet (including via online auctions on platforms such as Trade Me), you must make it clear to possible buyers that you are “in trade”. This lets buyers know they are protected under the FT Act and the CGA.