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Guidelines for starting a new business in New Zealand

Guidelines for starting a new business in New Zealand

Auckland based Auto Shine Car Care Products Ltd, New Zealand’s premiere car grooming products manufacturer not only excels in making and marketing best car detailing items in the land of the Kiwis but also advises clients about how to run businesses that are closely related to automobiles. This blog post concerns guidelines about how to start up and run a Vehicle Rental Business in New Zealand.

Starting up a new vehicle rental business in New Zealand where established companies such as Avis, Budget, Hertz and many more are already operating in full swing could be daunting. Besides, you also need to consider whether you will concentrate only on family friendly sedans or 4WDs and practical vans. Nevertheless, once you have made up your mind, Auto Shine Car Care Product Ltd PR personnel will help you proceed further in the line. Meanwhile, follow the guidelines given below.


Transport Service License

To begin with, you will need a Transport Service License to own and operate a Vehicle Rental Service business which is issued by NZ Transport Agency.


Operator Licensing Rule

You will also need to abide by Section 4 of the Land Transport Rule: Operator Licensing 2017 which specifies the minimum legal standards and requirements such as:

 Keeping a register of your vehicles as well as the people who hire these

  • Signing a written agreement with each vehicle hirer while providing them with copies
  • Explaining the hirer agreement whenever the hirer asks for the same
  • Ensuring that the hirer and/or anyone who intends driving the vehicle has a current and valid driver license for driving the vehicle
  • Offering driver insurance for the term of their hire


Meeting vehicle requirements -

The vehicles you hire to customers must meet higher safety standards before you can provide them for hire. These include registration and annual licensing requirements and routine certificate of fitness inspections. Your vehicles must continue to meet these safety standards while operated in a transport service.

When acquiring vehicles for your business, you should also be aware of the safety features common in most modern vehicles as well as features that could affect the environment.

Auto Shine Car Care Products Public Relations Managers also advise clients who intend to start car rental business in New Zealand to become members of RVA (Rental Vehicles Association, whose principles are enumerated below. 

The Association seeks to maintain the standards of ethical trading of members by imposing the following Code of Conduct on its members in respect of safety, service and other related issues.


(1.1) In the best interest of the public, members shall conduct their business in a fair and ethical manner and shall not act in such a way as to prejudice the standing or reputation of the Association.

(1.2) Members shall be fully conversant with the Third Schedule of the Transport Services Licensing Act 1989 together with subsequent amendments, and all other Regulations which apply to the conduct of a vehicle rental business and the operation of vehicles under that Transport Act.

(1.3) Members shall render service with absolute fidelity, honor and courtesy and protect the public against unethical practices in connection with the renting or leasing of motor vehicles.


Vehicle Standards:

(2.1) Vehicles shall comply with all statutory requirements in regard to fitness and safety and be maintained in such a fashion that they meet the minimum safety requirements for a Certificate of Fitness at all times.  No vehicle will be hired with a known defect or in a condition where a defect is likely to occur during the term of the hire.

(2.2) All vehicles shall be clean and fully serviced and prepared for normal use in the type of hire to be undertaken.

(2.3) Where a client has reserved a specific vehicle type, any subsequent variation due to vehicle unavailability must be discussed with and approved by the client. The client shall have the right to cancel the reservation and receive a full refund of any deposit paid.



(3.1) Members shall operate from a registered place of business and comply in full with all local and other regulations.

(3.2) The normal place of business shall be notified to the Association on the Membership Application Form and any subsequent change of premises shall be notified to the Association.

(3.3) The premises shall, at all times, be maintained and presented in such a manner and appearance as to reflect the high levels of professionalism and quality performance expected of Association members.


Customer Service:

(4.1) Members will point out to hirers all relevant laws relating to loading and use of the vehicle. They will supply information on road safety and laws as appropriate to ensure that the hirer has adequate knowledge of local customs to ensure safe use of the vehicle.

(4.2) Hirers shall be advised clearly and unambiguously of all charges to be levied for a hire. A hirer will not be held liable for any charge which has not been so notified to them prior to incurring the charge.

(4.3) Hirers shall be advised clearly and unambiguously of their rights and liabilities under the insurance clauses of the Rental Agreement. It is not regarded as adequate that the hirer sign or initial insurance clauses. They must either have actually read them (or read a fair and accurate summary of them) or had the details clearly explained to them.

(4.4) Hirers shall be clearly and unambiguously advised as to the full implications of any money or charge form left as a deposit on the vehicle. No charges shall be made against that deposit money or charge form unless the hirer has been advised of the nature and reason for such charge. No such charges shall be made unless they clearly comply with Clause 4.2.

(4.5) Hirers will be advised of the service to be rendered by the member in the event of a breakdown. The extent and nature of that service shall be made known to the hirer before the hire agreement is entered into.

(4.6) The obligations of the hirer in regard to care and maintenance of the vehicle shall be clearly and unambiguously explained to them before the commencement of the hire.

Even though the basic principles that deal with starting up and running a car rental business in New Zealand has been provided in this blog post, clients are welcome to ask questions on anything they may find difficult to understand or comply with.

Category: Auto Shine Blog

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