“I bought a used car, but after a few months it stopped working and is useless to me. What to do?” A question we get quite often. Don’t be intimidated by the sovereignty of car dealerships and find out what you’ re entitled to. In this article, we won’t forget about those who bought a car new and we’ll take a look at what’s involved in cancelling the purchase contract in their case as well.
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When we buy a used car, we’re kind of buying a rabbit in the bag every time. But that rabbit may be inedible or even stolen.
Tip: We have covered the issue of buying stolen cars in a previous article.
In the area of defects and warranties, Czech law has undergone a real upheaval. There is no room here to examine the debate on whether or not the mandatory two-year warranty for consumer goods has been abolished. What is certain, however, is that now the warranty (even for second-hand goods) does not have to be set out in writing in the contract, since even the indication of the warranty period in the manual or in the advertisement will have binding effects on the seller. For example, a leaflet from a car dealership or a radio advertisement mentioning a superior, e.g. seven-year warranty will suffice. However, it is advisable to keep such an advertisement somehow (e.g. a print screen from a computer screen) to avoid a lack of evidence in any proceedings.
Before withdrawing from a vehicle purchase contract, make sure that the defect does not fall into the following categories. In the following situations, the car cannot be claimed:
Tip: Read our article Car transfer agreement and the most common mistakes we see in it
An available solicitor advises, “For the buyer to rescind the contract of sale of the car, the defect must have manifested itself before the expiry of the warranty period. This is normally 24 months, but can be halved for used cars. When you buy, the seller must inform you of the shortened period, i.e. define it in the car purchase contract.”
If the defect was not obvious or caused by wear and tear, as we wrote above, and the buyer did not inform you about it (the defect is not described in the purchase contract), then the defect is considered a hidden defect. According to the Civil Code, if the latent defect manifests itself within 12 months of taking delivery of the car, the car is deemed to have been defective at the time of signing the contract of sale. In such a situation, the seller is liable for the defects and you have the right to claim.
An available solicitor advises, “We often encounter cases where car dealerships reject a claim and argue that the defect occurred after acceptance and is the result of operational wear and tear. Don’t be discouraged. This is unlawful and if the car dealership insists on its decision, it must prove that the defect really occurred after the car was handed over. If this is the case, the car dealer is still liable for the hidden defect in the vehicle.”
In the case of a claim for hidden defects, the quotations in the car purchase contract to the effect that “the buyer has familiarised himself with the condition of the vehicle” and “the seller is not liable for any defects” do not play a role. These are statements with no legal significance and serve only to deter consumers.
Tip: After the expiry of the 6-month period from acceptance, the burden of proof lies with the buyer.
The 6-month warranty period for hidden defects also applies here, but the burden of proof is on you. Therefore, it is necessary to get expert advice first and, if necessary, to have an expert’s report drawn up before contacting the original owner. If the claim is not accepted, a lawyer and the court will be involved.
An available attorney advises, “Do not repair the defect in the car. It must remain in the same condition as the defect for the duration of the claim. By repairing it, you would lose the ability to make a claim.”
If the car dealer accepts your claim, then insist on writing a claim report and keep a copy. The 30-day statutory time limit for handling a claim starts when the claim is made. Similarly, make sure that the complaint report states the remedy.
If the claim is not acknowledged and a dispute ensues, the condition of the vehicle will be assessed by a forensic expert. We recommend that you keep as many documents as possible to prove the previous condition.
In the event of a used car claim, you are entitled to a discount on the purchase price or to have the defect rectified. If the defect has occurred repeatedly after the claim or if there are multiple defects, in this case you can request withdrawal from the car purchase contract.
Similarly, if the 30-day claim period has expired and the dealer fails to deal with it, then they are in material breach of contract, in which case you can withdraw from the contract and claim your money back.
Tip: Beware that you can only withdraw from a used car contract after a failed or rejected claim.
Then the car is covered by a 24-month warranty that covers not only hidden defects but any other defects. According to the Civil Code, the seller is liable for the following:
“(1) The seller is liable to the buyer that the item is free from defects upon receipt. In particular, the seller is liable to the buyer that at the time the buyer took possession of the item,
Unfulfilled expectations or purpose may not only be due to technical defects, but also, for example, to the fact that a seller offers vehicles on the basis that they are suitable for a certain number of people and this turns out not to be the case.
For a new car, the seller is responsible for defects that appear during the warranty period. However, the condition that the defect existed at the time of acceptance also applies here. The burden of proof lies with the seller for the first 12 months, then with the buyer (as with a used car). In practice, however, sellers usually accept their liability for the full 24 months of the warranty without the buyer having to prove when the defect occurred.
In a new car claim, the buyer can claim for the supply of a new part, the rectification of the defect, a discount on the purchase price, the supply of a new car (if appropriate to the nature of the defect) and , as a last resort, rescission of the contract of sale of the car.
The buyer has the right to withdraw if:
In this case, it is a contract of sale, for which there is no warranty by law. The seller is only liable for latent defects (those existing at the time of handover). If you are buying a car as a business, beware of clauses in the contract of sale that limit your rights to claim for the car. These include, for example, the obligation to have the car serviced at an authorised garage or a compulsory annual inspection. Often these clauses are overlooked, but at the same time you risk losing your warranty if you don’t comply.
In the context of a business , you are only entitled to withdraw from the purchase contract of a car if it shows defects that were already present when you took delivery of it. At the same time, the defects must be such as to make it impossible to use it for its intended purpose. This example also demonstrates the importance of a properly concluded purchase contract which specifies in detail the claim and the possibility of withdrawal.
Read how to make a successful complaint. Find out when you are entitled to a refund and the difference between a claim and a withdrawal.
In the case of car dealerships or car dealerships, there is a good chance that you will receive a sample of a vehicle purchase contract cancellation directly from them. Otherwise, many people resort to downloading generic templates from the internet. Especially for cars where you are dealing with large sums, we urge you to be vigilant. Anonymous templates are often outdated or invalid and in any case fail to reflect the specifics of your withdrawal.
Are you dealing with complications when withdrawing from a vehicle purchase contract? Or do you want advice on what your rights are in such a situation? Get a one-stop answer from a specialist to your legal query. Within 48 hours you will be clear.
Has someone sold you a car that has defects you didn’t know about or doesn’t have the required features? We will assess your case and within 24 hours we will develop a proposal for legal services leading to a successful defective car claim and remedy.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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