Ask an expert

Hi Jack,

I am buying a demo vehicle which was only registered a week ago and has less than 200km on the clock. After all the paperwork was completed the dealer now tells me that he will only file the LTSA papers in 2 months time as they are obliged by the manufacturer to keep demos for a few months before they can sell.

My question is if the LTSA papers are not filed, who is actually the legal owner of the vehicle or who holds the ownership right to the vehicle. I now have a loan agreement that says I own a vehicle which is not registered under my name, which I thought was odd. Will this cause any complications for me in any way in the future?

The dealer assures me that it is all legit but wanted an opinion from someone who knows these things.

Thanks.

The NZTA papers are a trail of ownership more than a legal document of ownership. If both parties have signed the sales agreement then you are the legal owner of the vehicle.

I suspect the Dealer is stretching the rules set down by the NZ distributor they represent. They no doubt have an agreement to retain these vehicles for an agreed time before selling as ex-demonstrators.

This actually works in your favour to be honest. If the car remained in the Dealers hands for a longer period then the mileage increases as does the number of potential buyers who have taken it for a test drive.

Its more desirable to purchase an almost brand new ex demo at a reduced price and with no added on-road-costs with the lowest odometer possible.

Just make sure you follow up with the Dealer to ensure they do inform NZTA of the change as promised.