Liability for defects in a used car in consumer sales

Liability for defects in a used car in consumer sales

When buying a used car goes smoothly and the keys change hands, everything often looks excellent. It is only once you start driving that both minor and more serious defects may come to light. This article looks at who, under the law, ends up paying the repair costs.

This article concerns Finnish law.

Which law applies?

If the seller is a trader and the car is bought for private use, the situation is assessed under the Consumer Protection Act. When both parties to the sale are private individuals, the Sale of Goods Act applies. This article focuses specifically on the sale of a used car between a trader and a consumer.

Who is responsible for what?

A car sale creates a contractual relationship between the seller and the buyer. Under the Consumer Protection Act, the seller bears primary responsibility for defects that appear in the car, and defects are presumed to have existed in the car already at the time of sale if they appear within one year of the sale. If a defect appears later, the burden of proof is on the consumer to show that the defect was already latent in the car at the time of sale.

Generally, after the sale, the buyer must look after the car through proper use, regular servicing and by following instructions.

A used car is allowed to look used, but not everything is acceptable even so. A car sold "as is" can also be defective if:

• The car does not match the information the seller gave about its features or use before the sale, where that information can be assumed to have influenced the purchase.
• The car turns out to be in worse condition than the buyer has reasonable grounds to expect, given its age, mileage, purchase price and the other information provided by the seller.

The seller is not, however, liable for a defect when it is a matter of normal wear and tear or a fault caused by misuse, or if the consumer was told about the fault before the sale. Neglected servicing, accidents or other contribution by the consumer may also affect the seller's liability for defects.

To avoid misunderstandings, all operating, servicing and other essential instructions should be handed over to the buyer, and any known faults should be mentioned separately in the deed of sale.

How to make a complaint

A fault that is discovered must be reported to the seller within a reasonable time of noticing it. A complaint should always be made in writing (an email, for example, is enough), because in a dispute this makes it possible to show that the complaint was made within a reasonable time.

If the seller has acted with gross negligence or in bad faith, the buyer can rely on the defect even after the ordinary complaint period would otherwise have expired.

What are the consequences of a defect?

In the sale of a used car, the seller has the primary right to repair the defect. If repair is not possible or the seller does not exercise the right to repair, a price reduction often comes into play, but rescission of the sale is also possible if the defect is not minor or cannot be repaired within a reasonable time without significant inconvenience to the buyer.

Whether a defect is minor is assessed as a whole from the buyer's perspective. For example, various cosmetic defects or minor faults that can be repaired quickly and cheaply may remain minor.

How are disputes resolved?

The best outcome usually comes from negotiating with the seller. If no settlement is reached, the consumer can take the matter to the Consumer Disputes Board for a recommended resolution, or bring an action in the district court of their home locality, in which case the matter is decided in court.

Summary: In a used car sold by a trader, the seller has a statutory liability for defects, which is separate from any warranty. Report a fault in good time and preferably in writing. The seller has the primary right to repair, but if that cannot reasonably be achieved, a price reduction or rescission of the sale may come into play. In disputes, proceed first by negotiation and then, if necessary, to the Consumer Disputes Board or the district court.