Car sales disputes
We assist both buyers and sellers in car sales disputes with extensive experience
Disputes related to car sales often concern defects discovered in the car after the sale. The seller and buyer of the car often disagree on who is responsible for defects discovered in the car after the sale.
If a defect is discovered in the car after the sale, it is a defect in the object of the sale, i.e., the car. Upon discovering the defect, the buyer should file a complaint with the seller about the defect discovered. It is advisable to file a written complaint with the seller as soon as possible after discovering the defect.
Cancellation of the car sale, price reduction, or repair of the vehicle?
When filing a complaint, the buyer has the option of demanding that the defect be corrected, a reduction in price, or cancellation of the sale. Correction of the defect, i.e., repair, is often the first course of action. The buyer may demand a reduction in price and cancellation of the sale, for example, if the seller has not corrected the defect, the seller has stated or it is obvious from the circumstances that the seller will not correct the defect within a reasonable time, or the defect is so serious that it cannot be corrected.
The price reduction must be proportional to the decrease in the value of the car due to the defect. It should be noted, however, that there is no right to cancel the sale if the defect is minor. However, the seller has the burden of proving that the defect is minor.
In terms of the division of liability, it is important whether the seller of the car is a business, i.e. a dealership, or a private seller. The Consumer Protection Act applies when the seller is a business. In the case of a private seller, the Sale of Goods Act applies. However, the rules governing liability for defects in car sales are relatively similar regardless of the applicable law.
Our lawyers have decades of experience in dispute resolution
We assist in car sales disputes throughout Finland with professionalism and extensive experience. With decades of experience, we help our clients achieve a solution that is in their best interest. Please contact us if you have a problem related to car sales. We will help you find the best possible solution.
Most car and home insurance policies include legal expenses insurance. Often, for example, the legal expenses insurance included in car insurance covers the costs of hiring a lawyer in full, except for the deductible.
Liability for defects in car sales
The buyer's liability in car sales
It is always a good idea for the buyer to inspect the car before making a purchase decision. The seller has a duty to disclose information, i.e. an obligation to disclose all facts that affect or may affect the value of the car or the buyer’s purchase decision. However, if the defect in the car could reasonably have been detected before the sale, it is not usually possible to invoke the defect retrospectively.
The buyer must always notify the seller of the defect within a reasonable time after discovering it or when it should have been discovered. This complaint should be made as soon as possible after the defect is discovered in order to avoid possible loss of rights in the future.
Seller's liability in car sales
Car sales are subject to the Consumer Protection Act when the seller of the car is a business, i.e., a dealership, and the buyer is a private individual, i.e., a consumer. According to the Consumer Protection Act, the defectiveness of a car must be assessed on the basis of the condition of the car at the time of sale. The seller is liable for any defect that existed in the car at that time, even if the defect only becomes apparent later.
The Consumer Protection Act stipulates that if a defect becomes apparent within one year of the sale, it is assumed that the defect was present in the car at the time of sale.
Cancelling a car sale with a car dealership
When the seller of a car is a business, the consumer is protected by the Consumer Protection Act. If a defect becomes apparent within one year of the sale, it is assumed that the defect was present in the car at the time of sale, unless proven otherwise. The car dealership is liable for any defects present in the car at the time of delivery, regardless of when the defect becomes apparent and regardless of whether the seller was aware of the defect.
The Consumer Protection Act stipulates that the buyer may demand a price reduction or immediate cancellation of the sale if the defect is so serious that it cannot be corrected. However, there is no right to cancel the sale if the defect is minor. The seller has the burden of proving that the defect is minor. The Consumer Protection Act is therefore based on the idea that cancellation is possible if the defect is more than minor. If the seller does not repair such a defect within a reasonable time and free of charge, the buyer often has the right to cancel the sale. The consumer is not obliged to contribute to the repair costs of the car, even if the seller so demands.
Costs of cancelling a car sale
When a car sale is cancelled, the parties to the sale return the performances made to each other. This means that the situation is returned to what it was before the sale, the purchase price is refunded in full, and the object of the sale is returned to the seller. In principle, the buyer does not incur any costs from the cancellation of the sale, but in some cases, the benefit gained from the use of the car may be deducted from the purchase price.
Used car sales
A car being sold is considered defective if it does not correspond to the information provided by the seller. The seller has failed to comply with their duty to disclose information if, for example, incorrect or incomplete information has been provided about the condition of the vehicle, including repairs.
In consumer sales of used cars, the car can be considered to have a defect if it is in worse condition than the consumer had reason to expect, taking into account the age of the car, mileage (kilometres driven), purchase price, and other information provided by the seller. The seller is also liable for defects of which the seller was unaware.
The sale may be cancelled, particularly if the defect cannot be repaired within a reasonable time and at no cost, and the effects of the defect are so significant that a price reduction alone is not sufficient compensation. Common, non-minor defects that often justify cancellation include engine faults that occur shortly after the sale and other faults that prevent normal use of the car.
Many car dealers offer additional coverage or a warranty for used cars they sell for an additional fee. However, the warranty and liability for defects under the Consumer Protection Act are not mutually exclusive. Additional coverage or a warranty cannot limit or weaken the buyer’s rights under the Consumer Protection Act. When purchasing additional security or a warranty, it is often useful to familiarize yourself with the terms and conditions to ensure that they do not merely replicate the rights already afforded to consumers under the Consumer Protection Act.
Complaints
A complaint should be filed immediately after the defect is discovered. The buyer may not invoke a defect in the car unless they notify the seller of the defect within a reasonable time after discovering it or should have discovered it. The Consumer Protection Act stipulates that a complaint must be made within two months of the buyer discovering the defect.
If you wish, we can prepare a complaint on your behalf. Please contact us as soon as possible if you suspect a defect in a car purchase.