How to Cancel Ownership of a Vehicle in New Zealand

Selling or scrapping a vehicle in New Zealand is not just handing over a key and getting money. One of the most important steps you must have to take is “cancelling ownership” of your vehicle.  

Suppose car owners delay the process after selling their vehicle. In that case, they are responsible for any future tickets or if the vehicle is involved in an accident, the liability falls back on them. 

In this guide, we will explore the importance of vehicle cancellation, outline the steps involved, and provide tips to make the deregistration process easy.

The Importance of Cancelling Ownership

• Avoid fines and penalties: By doing that, you can avoid future fines and penalties.

• Peace of mind: After cancellation, your car is no longer in your official records, which will give you peace of mind.

• No ongoing costs: Once registration has been cancelled, you will not be charged for anything outstanding in the future.

It looks like closing a chapter on your vehicle. Without these steps, your vehicle remains yours, even if it’s in a wrecker yard or someone else’s driveway.

Step-by-Step Guide to Cancelling Vehicle Ownership in New Zealand

Step 1: Gather Required Documents

You’ll need:

• Both the number plates and the registration label
• Your valid photo ID, such as a driver’s license or passport.

Step 2: Visit a local VTNZ or AA centre

• Provide your ID and vehicle details
• Complete the MR15 application form to cancel registration

You can download the MR15 form for the vehicle cancellation process from this link.

Step 3: Pay the Cancellation Fee

To cancel a vehicle’s ownership or registration, a small administration fee of around $10.02 is charged to the NZ Transport Agency Waka Kotahi. 

Step 4: Get Confirmation

Once the transaction is processed, you will get a confirmation that your vehicle is not in your name. Keep this record safe. 

What Happens After Ownership is Cancelled?

When vehicle ownership is cancelled, it means your vehicle has been deregistered with the NZTA. Your car has been officially removed from your name, and you are no longer permitted to use it on the road. You no longer need to worry about rego renewals. The vehicle can legally be scrapped, dismantled, or recycled.

Cancelling Ownership When Selling to Car Wreckers

If you’re looking to sell your car to car wreckers, the process is straightforward:

• In most cases, the driver who will be picking up the vehicle will guide you through the ownership cancellation process. 
• You not only get cash for your car removal, but you also get peace of mind that your vehicle paperwork has been completed correctly and that it’s no longer under your name.

That’s why many people opt for wreckers over private buyers.

Tips for a Smooth Cancellation Process

• Cross-check details: Make sure your name, vehicle details and licence number are accurate before submitting.
• Remove your plate: You must submit your vehicle’s number plate when deregistering.
• Don’t delay: Cancel ownership as soon as possible to avoid future tickets or fees.
• Keep Records: Always keep a copy of your cancellation confirmation.

By following these steps, you can ensure a hassle-free cancellation process.

FAQs About Cancelling Vehicle Ownership

Do I need to cancel ownership before scrapping my car?

Yes, it’s required to cancel ownership before or at the time of scrapping to avoid being liable for the car later.

Do I need to cancel ownership if I privately sold my car?

Yes, you must act quickly. Provide the buyer’s details on the disposal form to finalise the transfer.

Are there any fees to cancel ownership?

Yes, there is a small fee to cancel vehicle ownership, which is $10.02. 

What if my car has no number plates or rego?

Yes, you can still cancel ownership by filling out a registration cancellation form at an NZTA plate agent. You’ll need to provide a valid reason why you can not return the plates. Additionally, you should include supporting evidence, such as a police report or fire report, if the plates were lost due to an accident or fire.