Selling a car privately usually goes well, but in some cases disagreements can arise afterwards. It happens that the buyer contacts the seller weeks or months after handover with demands for a price reduction, repairs, compensation or, in the worst case, cancellation of the purchase – often on the basis of alleged errors or defects. Such situations can be experienced as both unpleasant and confusing, especially when one believes that one has acted in good faith. Nevertheless, it is important to take such claims seriously and handle them in the right way.
A claim for a warranty means that the buyer claims that the car is not as agreed, or that it has a defect or defect. The seriousness of the defect is decisive for what rights the buyer has. In sales between private individuals, this is regulated by the Norwegian Sales Act. The law stipulates, among other things, that the goods must be in accordance with what has been agreed and what the buyer could reasonably expect, based on the car's age, price, mileage and general condition.
An important point is the "sold as is" clause, which is often used in private car purchases. Even with such a clause, the seller can still be held liable if:
Cancellation of a car purchase is the most drastic consequence of a claim for damages. This means that the purchase agreement is cancelled, the buyer returns the car, and the seller refunds the purchase price. In order for a car purchase between private individuals to be cancelled, the defect must be "material". This is a high threshold and requires that the defect is of such a nature that it significantly affects the usability or value of the car, and that it cannot be repaired without disproportionate costs or inconvenience. Examples include serious engine defects, incorrect information about significant damage, or manipulated mileage.
As a seller, you also have rights. First and foremost, you are entitled to receive a specified and justified claim from the buyer. You also often have the right to try to remedy the defect yourself, if you accept that there is a fault. It is important not to acknowledge a claim without having considered the matter thoroughly. Many claims are undocumented or unreasonable, and it is entirely possible to reject them if they have no legal basis.
If the claim is large, unclear, or the buyer is difficult to work with, you should seek legal advice. A lawyer can assess the case objectively and help you respond legally.
Many ordinary car insurance policies also include legal aid coverage that can cover a large portion of legal fees in disputes. The prerequisite is that the car was insured at the time of sale, and that there is a genuine dispute where the buyer has made a claim that you have disputed.
Would you like help and guidance with your case? Contact our automotive lawyers for a no-obligation chat.
Have you bought a car with defects and want to make a claim against the seller?
The threshold for contacting a lawyer should not be high. If you are concerned about costs, your car insurance policy is likely to cover legal expenses up to €100 000. The policyholder will have to pay a deductible of between €2,000-5,000, plus 20% of any expenses incurred over and above the deductible, but the insurance company will bear the brunt of the cost.
Example: if your total legal costs are € 60 000 and your own contribution is € 2 000, in addition to the € 2 000, you will have to pay 20% of € 58 000. In this example, you would have to pay a total of €13,600 in excess. In other words, your car insurance policy potentially covers a large part of your legal expenses.
It is the insurance contract that regulates the conditions that must be met in order to obtain legal aid cover under the motor insurance policy. As a general rule, legal aid is granted from the moment a dispute arises. A dispute arises if you make a claim and the other party refuses. A lack of response from the other party (inaction) can also lead to a dispute under insurance law.
Note the insurance contract must have been concluded before the dispute arises. If the insurance was taken out after the dispute arose, the insurance is likely to refuse legal aid coverage.
As a general rule, the insurance does not cover expenses greater than your financial interest in the case. For example, if you want to cancel a car purchase and the car is worth NOK 300,000, the insurance may cover up to NOK 100,000 in legal expenses.
We can help you with your questions about legal aid coverage.
If you have any questions about the content of this article or would like assistance in a dispute with a car seller, you can contact us without obligation here.
Discovering defects or deficiencies in a newly purchased car can be frustrating, especially if the seller refuses to cancel the purchase. It is important to know what your rights are as a buyer and what steps you can take to resolve the situation.
When you buy a car, you as a private individual have rights under either the Consumer Purchase Act (when buying from a dealer) or the Purchase Act (when buying from a private individual). If you have bought a car from a private individual, the defect must be significant for you to be able to cancel the purchase. However, if you have bought from a car dealer, the law is more favorable to you as the buyer. This applies regardless of whether you have bought a new car or a used car from a dealer.
The car must be delivered in the agreed condition and have the equipment and features that the seller has stated in connection with the sale, whether the sale is through a dealer or a private individual. What you can expect depends, among other things, on the information in the sales advertisement, the purchase contract, the condition report and other information from the seller.
The seller has a special responsibility for the information provided about the car. If the seller provides incorrect information or fails to inform about important matters, this may be considered a defect.
If the car has a defect that was not disclosed at the time of purchase, you may be entitled to:
If the car has a defect, the seller should generally be given the opportunity to correct the defect. If this is not possible, replacement may be an alternative. In practice, this most often happens when purchasing newer cars. If correction or replacement is not an option, a price reduction may be appropriate. The reduction is calculated based on the value of the car with and without the defect.
In some cases, the defect is of such great importance that cancellation may be applicable. If you have bought a car from a private individual, more is required to be able to cancel the purchase, in which case the defect must be significant . If you have bought from a dealer, the defect is required to be not insignificant. In that case, the seller must prove that the defect is insignificant. It is therefore easier to cancel a car purchase as a consumer if you have bought from a dealer/business operator, than when buying from private individuals.
A complaint means that you inform the seller about the defect. This should be done in writing to have documentation. There are two deadlines to adhere to:
It is important to comply with both deadlines to maintain your rights.
A defective car can lead to significant costs, and attorney and litigation expenses can be very high. Since each car case is unique, it may be a good idea to contact an auto lawyer for a free evaluation of your case.
Discovering hidden defects and defects after purchasing a car can be frustrating and costly. Fortunately, Norwegian law gives you, the buyer, certain rights in such situations. Here is an overview of what you should know and how you can proceed:
Hidden defects and defects refer to problems with the car that were not visible or known at the time of purchase, and that affect the value or functionality of the car. This can include mechanical defects, electrical problems, or structural damage that was not discovered during a routine inspection.
Your rights depend on whether you bought the car from a private individual or a dealer:
Cancellation of the purchase means that the agreement is cancelled, and both parties return what they have received. This is applicable when:
Many used cars are sold with the condition “as is”. This limits the seller’s liability, but does not completely exempt them. You can still make a claim if:
If you cannot reach an agreement with the seller, it may be a good idea to contact a lawyer with experience in purchase law . Many insurance policies cover legal fees in such cases. Book a free, no-obligation meeting with one of our car lawyers.
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