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0800 387 607
Faultless Cars NZ
Rental Terms & Conditions
Before renting a vehicle from us, you’ll need to review and sign our rental agreement, which includes these terms and conditions (“Rental Agreement)’. Please take the time to read and understand them, as they outline your rights and responsibilities. By signing, you confirm your acceptance of these terms.
You agree to the following terms:
General Policy Information
1. Only the people listed on page 1 of this agreement are allowed to drive the vehicle unless Faultless Cars Limited gives written permission.
2. All drivers must have a valid current driver’s license appropriate for the vehicle at the time of driving. If the license is not in English, it must be officially translated. The license endorsements must match the type of vehicle being rented.
Disputes
3. If you believe there is a mistake in your charges or have concerns about your experience, please notify us in writing by no later than 20 working days of the end of your hire.
4. We aim to resolve complaints within 7 days. If more time is needed, we’ll inform you and provide weekly updates until it's resolved.
5. If you are dissatisfied with the resolution provided, you may escalate the matter to an independent dispute resolution service, such as the Disputes Tribunal (or applicable authority in your region).
Your Obligations
6. You must provide true and accurate information before, during, and after your rental, including a valid driver's license.
7. You must not register or claim any security or other interest in the vehicle.
Payment
8. You agree to pay the amount listed on page 1 of this agreement to Faultless Cars Limited (“Hire Charges”) prior to
(and as a condition of) commencement of the hire unless we have agreed to hire the vehicle to you on credit. Where we have agreed to hire the vehicle to you on credit, you must pay the Hire Charges within 14 days of us providing our invoice to you or such other date as we may agree in writing with you.
9. In addition to the Hire Charges payable under clause 8 above, you also agree to pay any other charges set out in our
“Understanding your rental charges” document should such charges apply (“Additional Charges”) or as otherwise expressly set out in this Rental Agreement. We will promptly notify you of any such Additional Charges or other amounts that you may be liable for and which you agree to pay us upon demand by us. The Additional Charges may include but are not limited to:
a) Road user charges (RUCS)
b) Fuel costs
c) Late return fees if the vehicle is returned later than the agreed time
d) Damage repair costs and enforcement charges related to the damage
e) Traffic fines and infringement fees
f) Toll charges
g) Administration fees for any of the above
You may dispute these charges by contacting our customer service team. If you do not dispute the charges within 10 working days of notification to you, you authorize Faultless Cars Limited to debit all unpaid amounts for such charges from the credit or debit card you provided.
10. When you rent a vehicle, you must provide your credit card details. 24 hours before your rental begins, we will place a hold of ($200) on your card as a security bond. This hold will be released when you return the vehicle, and you can pay any remaining costs by card or cash at that time. Please note that your bank may take 7-10 working days to process the release of the security hold. We do not accept digital cards or cash for the security bond.
11. We reserve the right to charge your card for amounts owed under the Agreement for up to 90 days after the vehicle's return.
Vehicle Use
12. You must never:
a) Use or allow the vehicle to be used for transporting passengers for hire or reward unless explicitly hired for this purpose with the rental service license holder’s knowledge and in compliance with a small or large passenger service license under Part 4A of the Land Transport Act 2017.
b) Sublet or hire the vehicle to any other person.
c) Allow the vehicle to be operated by someone who is not an authorized driver.
d) Allow the vehicle to be operated outside your authority.
e) Operate or permit the operation of the vehicle in violation of sections 56, 57, 57AA, 57A, or 58 of the Land Transport Act 2017 or any other legal obligation.
f) Operate or allow the vehicle to be used in any race, speed test, rally, or contest.
g) Operate or allow the vehicle to be used in violation of the Act, the Land Transport (Road User) Rule 2004, or any other relevant laws, regulations, or bylaws related to road traffic.
h) Operate or allow the vehicle to be used with more passengers or a higher gross vehicle mass than specified in the vehicle’s certificate of loading.
i) Drive or allow the vehicle to be driven on roads listed in clause 37 (g) of these terms, or on any unformed road or on any beach, driveway, or surface likely to cause damage.
j) Use the vehicle to carry dangerous, hazardous, flammable, polluting, or contaminating substances in amounts exceeding domestic use.
k) Transport animals in the vehicle, except for assistance animals. The vehicle must be returned in the same condition it was provided, or cleaning charges may apply.
l) Modify the vehicle or attach objects to its interior or exterior
m) Smoke, vape, or use electronic cigarettes inside the vehicle.
n) Drive, or allow the vehicle to be driven by any person, if at the time of driving, the driver is not the holder of a current drivers license appropriate for the vehicle and approved as a driver by Faultless Cars Limited.
o) Operate the vehicle outside its intended purposes or rated capacity or in a manner likely to cause undue wear and tear.
Your Responsibilities
13. Your responsibilities include all of the following:
a) You must take care of the vehicle and its contents for the entire rental period, including when driving, parking, or when it is not in use. You release and indemnify us from any claims for loss or damage to personal property stolen from the vehicle, lost or damaged during the rental, or left in the vehicle upon return.
b) You must keep the vehicle locked at all times when not in use and take appropriate steps to ensure that the keys to the vehicle are not accessed or available to anyone other than yourself or any other driver authorised under this Rental Agreement.
c) You must check and maintain proper coolant and water levels in the radiator and battery.
d) You must check and maintain the correct oil level in the vehicle.
e) You must maintain proper tire pressure and arrange and pay for the repair or replacement of any flat or damaged tires during your rental.
f) You must not tamper with the distance recorder or speedometer.
g) You must not interfere with any part of the engine, transmission, braking, or suspension systems.
h) If a warning light appears on the dashboard or you suspect a mechanical issue, stop driving immediately and contact us.
i) You must keep a copy of the Rental Agreement in the vehicle and present it for inspection upon request.
k) You are responsible for ensuring appropriate child seats are fitted for any children traveling in the vehicle. Faultless Cars Limited is not responsible for fines, injuries, death, or other losses due to the absence of child seats or improper restraint
l) You must maintain the vehicle in the same order, condition and repair as it was at the commencement of the hire (but shall not arrange or understand any repairs to the vehicle without the consent of Faultless Cars Limited);
m) You must pay for all fuel used in the operation of the vehicle.
n) You must operate the Vehicle carefully and competently at all times.
Accidents and Breakdowns
14. If the vehicle is involved in an accident, is damaged, breaks down, or needs repair or salvage, you must notify us immediately, regardless of fault. You must not carry out any repairs or salvage without our approval, unless necessary to prevent further damage to the vehicle or other property.
15. In the event of an accident, incident, theft, or any other damage to the vehicle, you agree to cooperate with us and/or our insurer in any investigation or subsequent legal proceedings, including complying with any reasonable requests by us or our insurer. You consent to and authorize Faultless Cars Limited and/or our insurer to obtain copies of police witness statements or reports related to the accident or any police charges against you. Failure to report within 24 hours may void insurance coverage only if it prejudices our ability to assess the claim. The may result in additional costs, losses, or damages charged to you.
Returning the Vehicle
16. You must return the vehicle to the address, and by the date and time, specified in your Rental Agreement.
17. You are responsible for returning the vehicle in the same condition it was provided—clean, tidy, and with a full tank of fuel, fair wear and tear excepted. Our Fair Wear & Tear Guide sets out what we consider is fair wear and tear and what is not.
18. If you do not return the vehicle with a full tank of fuel, we may charge you a refuelling fee as an Additional Charge, as outlined in our “Understanding your Rental Charges” document.
Our Obligations
19. We will ensure the vehicle is safe, roadworthy, and in good condition at the start of your rental. It will also have a valid and current Certificate of Fitness.
20. If the vehicle requires repair or replacement, we will discuss available options with you to minimize any inconvenience.
21. We must comply with the law, including the Consumer Guarantees Act 1993.
Cancelling this Agreement
22. You may cancel this agreement:
a) At any time before your booked date and time with no cancellation fees. However, if you fail to inform us of your cancellation, a 50% ‘No Show’ fee will apply.
b) During the rental period at any time. At our discretion, we may refund you for the remaining days.
c) If you believe we have breached these terms and we fail to remedy the breach within twenty (20) working days of receiving written notice from you.
Dangerous Driving
23. If we reasonably believe that your driving is likely to cause harm to yourself or others we may:
a) Cancel this agreement at once by giving you either verbal or written notice, and
b) Elect to discuss or notify the circumstances of your cancellation with other rental companies to promote safe driving in New Zealand.
If we cancel the agreement for this reason, or if we are requested to do so by the police or another regulatory authority, you must immediately return the vehicle— when safe and reasonable—to the agreed location shown in the Rental Agreement.
24. We may cancel this agreement if you breach any of your obligations under this agreement by notifying you verbally or in writing. In this case, no refund will be given.
25. Faultless Cars Limited is not liable for failure to fulfil obligations due to force majeure events, including but not limited to: natural disasters, government actions, pandemics, or severe weather. If such an event occurs, either party may terminate this agreement without penalty. You must return the vehicle as soon as safely practicable. No refunds will be given for unused rental days, but we may offer a credit for future rentals at our discretion.
Privacy
26. By signing this agreement, you confirm that you have the authority to provide Faultless Cars Limited with any additional drivers’ personal information. You also consent to us collecting, holding, using, and disclosing this information in accordance with our Privacy Policy which can be found on our website. All data is securely stored within our secure Rental Management System. You retain the right to access and correct your personal information.
Liability
27. You are liable for any:
a) Loss or damage to the vehicle and its accessories (excluding fair wear and tear)
b) Consequential loss, damage, or costs we incur, including salvage costs as a result of your negligence or breach of the Rental Agreement.
c) Loss or damage to third-party vehicles and property arising during the rental period, if caused by you or anyone driving the vehicle.
d) Interest on all outstanding balances at the applicable interest rate, as well as collection costs, debt collection fees, and legal fees (on a solicitor and own client basis) incurred if you fail to pay any amount owed to us. If the debt is referred to a collection agency, you will be responsible for all charges of the collection agency.
28. Nothing in this agreement is intended to exclude, restrict, or modify any implied terms, guarantees, or rights under applicable consumer protection laws including but not limited to the Consumer Guarantees Act 1993 and the Fair Trading Act 1986.
29. Subject to clauses 19 and 28, to the maximum extent permitted by law:
a) All guarantees, assurances, terms, conditions, warranties, undertakings or representations whether expressed or implied by law, custom, practice or otherwise are excluded; and
b) Our maximum liability to you, whether arising in contract, tort (including negligence), equity, warranty, indemnity, statute or otherwise in connection with, the Hire Agreement or the hire of the vehicle to you (including, without limitation, where caused by our negligence, and defect or breakdown in the vehicle, late provision or delivery of the vehicle, failure to provide or deliver the vehicle, breach of the Hire Agreement or other contract, or otherwise):
i. Is limited to an amount equal to the lesser of:
a) the total Hire Charges actually paid by you; or
b) three months of Hire Charges that you have actually paid; and
ii. In no circumstances shall we be liable for any consequential loss (except where permitted by the Consumer Guarantees Act 1993 but subject to clause 30, however so caused or for any loss suffered by third parties under or in connection with your hire of the vehicle.
30. Where you are in trade and hire a vehicle for trade purposes, you agree that the Consumers Guarantees Act 1993 does not apply and that we contract out of sections 9,12A and 13 of the Fair Trading Act 1986 in accordance with section 5D of the Fair Trading Act 1986.
Insurance
31. Our vehicle fleet is insured under a motor vehicle insurance policy (“Policy”) issued by a company licensed to conduct insurance business in New Zealand under the Insurance (Prudential Supervision) Act 2010.
32. We are not providing insurance services to you. We are only managing the insurance provided under our policy. We reserve the right to decided whether to claim under the policy. If the vehicle is damaged, you must contact us immediately and deal only with us.
Who is covered
33. Everyone named on page 1 of the agreement is covered against accidental loss to the vehicle as outlined in clause 36, unless otherwise agreed in writing with Faultless Cars Limited subject to the limits stated in the Policy.
What the Insurer will pay
34. We will provide you with information about the limits under the Policy if requested by you.
35. You can make your own insurance arrangements if we confirm that the alternative insurance is comparable to the cover under our Policy. If you choose to arrange your own insurance, you will not be covered under our Policy.
Your Excess
36. If you choose not to arrange your own insurance, in the event of accidental damage, loss or theft to the vehicle, but subject to the other provisions of this Rental Agreement, you will only be liable to pay an excess contribution, which is the amount you must contribute toward the cost of repairing or replacing the vehicle.
a) The excess contribution for drivers over 25 years old who have held a full license for more than 12 months is $500.00.
b) The excess contribution for drivers under 21 years old is $1,000.00.
You must pay the excess to us upon receiving demand from us.
Insurance Exclusions
37. You will not be (or may not be) covered for any loss referred to in clause 36 if:
a) You or anyone driving the vehicle is under the influence of any intoxicating substance, drugs, or alcohol.
b) The vehicle is operated while damaged or unsafe, and the driver was or should have been aware of this.
c) The vehicle is used in a race, speed test, rally, hill climb, or contest.
d) Anyone who is not named on page 1 of the agreement, or who does not hold a valid driver’s license appropriate for the vehicle, drives it.
e) The vehicle is operated for any illegal purpose.
f) You or anyone responsible for the vehicle causes loss or damage by committing an intentional or reckless act, including a serious traffic offense.
g) The vehicle is driven on any of the following restricted roads or locations: 90 Mile Beach (Northland), Skippers Canyon Road (Queenstown), Tasman Valley Road, or beyond the picnic area/parking lot near Mount Cook (South Island).
h) The damage is to the rims, wheels or tyres (including punctures) underbody, roof, windscreen, other glass or windscreen wipers.
i) You have arranged your own insurance for the vehicle.
j) Where you breach your obligations under this rental agreement.
38. The insurance cover will only be invalidated if the loss was caused or contributed to by any of the circumstances listed in clause 37.
39. You are responsible at your own expense for effecting insurance in respect of damage to your property and third parties (including their property) against all risks arising from your operation of the vehicle and otherwise from the vehicle being in your care, custody or control to the extent that he Policy does not provide any cover in respect of the same (the Policy provides up to $1,000,000 cover in respect of any liability you or another authorized driver may have for damage to any property belonging to third parties and arising out of the use of the vehicle subject to the exclusions in clause 37).
40. Where the Policy does not apply to cover any damage, loss or theft of the vehicle, you are fully liable to us in respect of the damage, loss or theft to the vehicle and indemnify us against any loss, damage liabilities, costs or expenses incurred or suffered by us in respect of damage, loss or theft of the vehicle.
Infringement Offences
41. You will be liable for and must pay any of the following infringement offences committed during the rental period:
a) Speeding offences
b) Toll offences
c) Offences for failing to comply with traffic signals, as detected by vehicle surveillance equipment
d) Parking offences that violate bylaws or road authority regulations.
e) Offences under Part 6 of the Land Transport (Road User) Rule 2004.
f) Offences under section 20(1) of the Freedom Camping Act 2011.
g) A private parking breach.
42. We may elect to transfer liability for any infringement offence (as defined in the Land Transport Act 1998) from us as the registered owner of the vehicle to you as the operator of the vehicle. If so, we will provide your name, address, date of birth, and driver’s license number to the relevant enforcement authority.
43. If we receive an infringement notice or reminder notice for an infringement offence committed during the hire, we will send you a copy of the notice and the agreement within five working days.
44. After receiving an infringement notice or reminder notice, we will inform you that your credit card may be charged for the infringement fee, along with an administration fee of $57.50 if you fail to pay the infringement yourself.
Your Rights
45. You have the right to challenge or contest the alleged offense by either contacting the enforcement authority that issued the infringement notice or requesting a court hearing within 56 days from the date the infringement notice was issued, or within 28 days from the date of the reminder notice.
SUPPLEMENTARY TERMS FOR ACCIDENT REPLACEMENT VEHICLES (CREDIT HIRE)
The following terms and conditions (“Credit Hire Terms”) apply specifically to clients hiring a vehicle as an accident replacement rental (credit hire) (“Accident Replacement Vehicle” where we have agreed that the client is a not at fault driver and we have otherwise agreed to hire a vehicle to the client on credit hire terms (which we may agree or decline to do so at our discretion). These terms and conditions are in addition to the terms and conditions outlined set out in our Rental Agreement which remain applicable to all vehicle hires. Where these Credit Hire Terms apply, we will hire an Accident Replacement Vehicle to you on credit and we will release you from any obligation to pay us associated with such hire provided that you cooperate fully with our recover process and otherwise comply with the requirements of the Rental Agreement and these Credit Hire Terms. We recommend that you seek independent legal advice before signing our Rental Agreement and Authority to Act.
Payment for Credit Hire
1. On occasion, and for the purpose of providing an Accident Replacement Vehicle only, Faultless Cars Limited may (but it is under no obligation to) agree to provide you with credit for the Hire Charges (as that term is defined in the Rental Agreement)
2.By signing our Authority to Act as well as our Rental Agreement, you agree that this constitutes an application for credit for the Hire Charges and that you must pay the Hire Charges by no later than the date specified in clause 8 of the Rental Agreement. You must also pay any, Additional Charges and other amounts payable by you under the Rental Agreement upon demand by us.
3. Any amounts payable arising from your use of the vehicle, including fuel costs, toll charges, traffic or parking fines, cleaning fees, excess charges, or damage costs are payable by you and where we incur any such amount arising from your use of the vehicle throughout the hire period, we may require immediate payment from you for such amounts, For the avoidance of doubt, we do not provide you with credit for these items, only for the Hire Charges that apply under the Rental Agreement.
4. Failure to make full payment by the due date will incur interest at a rate of 10% per annum, compounded daily.
5. Where you have complied with your obligations under the Credit Hire Terms and the Rental Agreement, we will release you from any liability to pay the Hire Charges where we recover them from the “At Fault Party” or where we decided to no longer pursue the At Fault Party for the Hire Charges. For the purposes of these Credit Hire Terms, the “At Fault Party” means the driver who caused the accident in which your vehicle was damaged (and their insurer where applicable) and resulted in you hiring a Accident Replacement Vehicle from us.
6. References to Hire Charges in these Credit Hire Terms, includes the daily rental rate set out in the Rental Agreement, vehicle delivery and collection fee, and costs and liabilities incurred by Faultless Cars Limited in seeking to recover the Hire Charges from the At Fault Party.
7. You agree that any Hire Charges specified in the Rental Agreement are estimated only as the period of your hire of the Accident Replacement Vehicle can be dependent on certain circumstances. The actual Hire Charges shall be calculated by reference to the actual number of days that you hire the Accident Replacement Vehicle for.
You Acknowledge:
8. You acknowledge that we, Faultless Cars Limited, operates as an independent entity and does not represent any insurer or repairer.
9. You acknowledge that Faultless Cars Limited does not arrange, coordinate, or bear responsibility for the repair, storage, movement, or disposal of your damaged vehicle. This remains the sole responsibility of the damaged vehicle’s owner.
10. You acknowledge that Faultless Cars Limited is required to provide a copy of the full Rental Agreement and Credit Hire Terms to At Fault Party. This is to facilitate a claim on your behalf.
11. You represent and warrant to us that:
a) You are not legally responsible for the accident to your damaged vehicle and that the At Fault Party was legally responsible for such accident (including because of their negligence);
b) All information that you provide to us is accurate, true and correct and does not omit any details that could be relevant to our ability to recover the Hire Charges from the At Fault Party;
c) You or, if different, the person driving your damaged vehicle at the time of the relevant accident had a valid drivers license for that vehicle and was driving in compliance with any conditions attaching to that license; and
d) You have made genuine attempts to mitigate further losses when hiring an accident replacement vehicle and that hiring the Accident Replacement Vehicle from Faultless Cars Limited was the most practical option available to you under the circumstances as they appeared at the time.
Your Obligations when hiring an Accident Replacement Vehicle
12. You appoint Faultless Cars Limited as your agent and duly authorised attorney to act on your behalf to recover all Hire Charges from the At Fault Party and, for that purpose, to undertake all acts that Faultless Cars Limited consider are necessary or desirable to assist with achieving that purpose. Without limitation to the foregoing, you authorise Faultless Cars Limited to:
a) Request and obtain on your behalf all information and documents from any person whatsoever that Faultless Cars Limited consider necessary, including, without limitation, from the repairer of your vehicle, from the At Fault Party and from any other person;
b) To exclusively receive (to the exclusion of you) all money that may be payable to you by the At Fault Party in relation to the Hire Charges;
c) Initiate, manage, settle and pursue legal action in your name and on your behalf against the At Fault Party or any other person that Faultless Cars Limited considers necessary or desirable in connection with the stated purpose.
13. You, and if different the driver of your damaged vehicle, agree to provide all reasonable assistance to us in recovering the Hire Charges, including, if necessary, attending an adjudication or court hearing and/or providing any statement or affidavit we or any lawyer acting on our behalf requests.
14. You agree to not act in any way that delays, hinders or prevents us from taking actions in your name to recover Hire Charges. Without limitation to the foregoing, you must not enter into any settlement with the At Fault Party (including their Insurer) or deed of release or similar arrangement without first providing us with a copy thereof and, in any case, where doing so prejudices your or our ability to recover the Hire Charges from the At Fault Party.
15. You agree to provide Faultless Cars Limited with all documentation necessary for Faultless Cars Limited to claim the Hire Charges on your behalf. This includes, but is not limited to, the registration and insurance documents related to your damaged vehicle, your driver’s license, and the driver’s license of the individual operating your vehicle at the time of the collision.
16. You agree to inform Faultless Cars Limited of any changes in the location of your damaged vehicle, including transfers between repairers.
17. If, at any point during the hire, you do not require a rental car for a short period (e.g., traveling away for work for one week), you agree to inform Faultless Cars Limited as a genuine attempt to mitigate further losses for the other party. Faultless Cars Limited will provide a vehicle upon your return if your vehicle is not yet repaired.
Our Obligations when hiring an Accident Replacement Vehicle
18. We agree to provide you with a like-for-like or similar vehicle to replace the damaged vehicle. In cases where we do not have a like-for-like or similar vehicle available, we will discuss alternative options with you to ensure that you are not further inconvenienced by the loss of use of your vehicle.
19. We will deliver the rental vehicle to a convenient location at the start of the hire and collect it from you at the end of the hire. This ensures that you are not further inconvenienced by the loss of use you have suffered as a result of another party’s negligence.
Vehicle Use
20. The vehicle must only be used for purposes that are the same as, or similar to, the intended use of the damaged vehicle, without limiting any other obligations outlined in the Rental Agreement or these Credit Hire Terms.
Duration of Hire
21. A minimum three-day rental period is required for eligibility for a vehicle rental or collection. If the rental period ends after 3pm on a Friday or on a weekend or public holiday, the Rental Agreement will be extended to the next working day.
22. As soon as you are notified that repairs to your damaged vehicle are complete or you receive a total loss settlement, you must contact Faultless Cars Limited without delay to arrange a suitable location, date, and time for the vehicle’s return. Failure to provide immediate notification gives us the right to charge you for the Hire Charges incurred from the day the repairs were f inalized or the total loss settlement was communicated, which you must pay us on demand.
Termination of an Accident Replacement Vehicle Agreement and Hire
23. You will be considered to be in breach of, and we may immediately terminate your hire of an Accident Replacement Vehicle under these Credit Hire Terms (and associated Rental Agreement) if we reasonably believe that:
a) You have provided false information that could impact the recovery of the Hire Charges.
b) You have admitted liability in connection with, or are otherwise found to be liable, for the relevant accident.
c) You have breached the Hire Agreement or these Credit Hire Terms (including failing to cooperate and provide all reasonable assistance, as well as ensuring that the driver and/or owner of the damaged vehicle at the time of the accident provides such assistance, to Faultless Cars Limited regarding the recovery process), unless the breach is minor or caused by circumstances beyond your reasonable control.
d) You are in breach of any warranty or representation that you have made to us, including (without limitation) those in clause 11. 24. We may also immediately terminate your hire of an Accident Replacement Vehicle under these Credit Hire Terms where we consider (at our total discretion) that the Hire Charges cannot be, or may not be able to be, fully recovered from the At Fault Party for any reason.
25. If we terminate the Rental Agreement for any of the above reasons, we will collect the vehicle from you, when it is safe and reasonable to do so, at the agreed location shown in the Rental Agreement and you must co-operate with us and make the vehicle available for collection.
26. Without limitation to any other provision of these Credit Hire Terms and for the avoidance of doubt, where we terminate these Credit Hire Terms under clause 23, our agreement to grant you credit is revoked and you must immediately pay the Hire Charges and all other amounts payable to us under the Rental Agreement and these Credit Hire Terms.