Ensure vehicles for sale meet acceptable quality standards

A significant number of disputes brought before the Motor Vehicle Disputes Tribunal involve claims that a vehicle was not of acceptable quality at the time of sale. Understanding these obligations can help reduce complaints, avoid costly disputes, and build trust with customers.

What does ‘acceptable quality’ mean?

Under the CGA, vehicles sold to consumers must be of acceptable quality. This means a vehicle should be:

• fit for the purposes for which vehicles are commonly supplied
• acceptable in appearance and finish
• free from minor defects
• safe
• durable for a reasonable period of time.

Whether a vehicle meets this standard is assessed from the perspective of a reasonable consumer who is fully aware of the vehicle's condition, age, mileage, price, and any disclosed defects.

Disclosure matters

Not every defect will result in a breach of the CGA. If a defect is clearly disclosed to a buyer before the sale, and the buyer proceeds with full knowledge of that issue, the vehicle may still meet the acceptable quality standard in relation to that disclosed defect. Accurate and transparent disclosure is therefore essential. This includes ensuring Consumer Information Notices (CINs) are complete and accurate, and that any known issues are communicated clearly to prospective purchasers.

Lessons from recent Tribunal decisions

Recent Motor Vehicle Disputes Tribunal decisions highlight the importance of assessing vehicle condition before sale.

In one case, a purchaser successfully rejected a vehicle after significant pre-existing structural damage was discovered shortly after purchase. The Tribunal found that the vehicle was not of acceptable quality because the defects affected safety and roadworthiness.

Decision: Buyer v Kiwicheapcars Limited [2026] NZMVDT 91(external link) — New Zealand Motor Vehicles Disputes Tribunal

Making sure you are aware of your responsibilities

Before offering a vehicle for sale:

• conduct appropriate inspections and repairs
• disclose any known defects
• provide accurate information about the vehicle's condition and history
• only make claims about a vehicle's quality or condition that can be substantiated
• address customer concerns promptly and professionally if issues arise after sale.

Compliance protects your business

Meeting acceptable quality standards is an important part of building trust with customers and supporting good trading practices. When vehicles are properly checked, accurately described, and any known issues are clearly explained before sale, customers can make informed decisions with confidence.

Taking these steps early can help prevent misunderstandings, reduce complaints or disputes, and support a fairer experience for both traders and consumers.