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New Zealand law explained for everyone

Land Transport Act 1998

Motor vehicle registration and licensing - Change of registered person on sale or other disposition

253: Disposal of motor vehicle

You could also call this:

“What happens to a car that's been taken away and not picked up”

If a motor vehicle is seized and impounded under section 249 and not released within 10 working days, the storage provider can dispose of it. If the storage provider isn’t a local authority, they need to ask an enforcement officer for permission to dispose of the vehicle. Once they get written approval, they can dispose of it as the officer sees fit. When this happens, the storage provider becomes the new owner of the vehicle.

If the storage provider is a local authority, they can dispose of the vehicle following certain rules in the Local Government Act 1974. Before getting rid of the vehicle, the storage provider must check a special register to find out if anyone has a security interest in the vehicle. They must then tell these people in writing about the disposal.

A security interest is defined in section 17 of the Personal Property Securities Act 1999. This means that someone might have a legal right to the vehicle, like if it’s being used as collateral for a loan.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3705387.

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Part 17 Motor vehicle registration and licensing
Change of registered person on sale or other disposition

253Disposal of motor vehicle

  1. This section applies to a motor vehicle seized and impounded under section 249 if the motor vehicle is not released within 10 working days of its impoundment.

  2. The storage provider with possession of the motor vehicle may dispose of the motor vehicle in accordance with subsection (3) or (5), as appropriate.

  3. A storage provider that is not a local authority may—

  4. apply to an enforcement officer authorised for the purpose by the Commissioner for approval to dispose of a motor vehicle under subsection (2); and
    1. with the enforcement officer’s written approval, dispose of the motor vehicle on such terms and conditions as the officer thinks fit.

      1. If approval is given under subsection (3) for the disposal of a motor vehicle, the storage provider becomes the owner of the motor vehicle for all purposes.

      2. A storage provider that is a local authority may dispose of a motor vehicle under subsection (2) in accordance with section 356A(7), (8), and (9) of the Local Government Act 1974.

      3. However, before disposing of a motor vehicle under subsection (3) or (5), a storage provider must—

      4. search the personal property securities register to identify every person with a security interest in the motor vehicle; and
        1. notify in writing every person with a security interest in the motor vehicle.

          1. For the purposes of subsection (6), security interest has the same meaning as in section 17 of the Personal Property Securities Act 1999.

          Notes
          • Section 253: inserted, on , by section 32(7) of the Land Transport Amendment Act 2009 (2009 No 17).