Canceling a car purchase at a dealer: Complete guide

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:

‍

What are hidden defects and deficiencies?

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 as a buyer

Your rights depend on whether you bought the car from a private individual or a dealer:

• Purchase from a retailer: The Consumer Purchase Act applies and gives you a five-year period to file a complaint. You must report the defect within a reasonable time after you discovered it, normally within two months.
• Purchase from a private individual: The Norwegian Sales Act applies, with a two-year warranty period. Here too, you must report the defect within a reasonable time after you discovered it.

‍

How to deal with hidden errors and defects

1. Document the fault: Take photos, videos and write down details of the problem. An independent assessment from a repair shop can strengthen your case.
2. Contact the seller in writing: Inform the seller of the defect as soon as possible and state what you want: repair, price reduction or cancellation of the purchase. Written communication provides proof that you have made a complaint within the deadline.
3. Give the seller the opportunity to correct the error: The seller usually has the right to attempt to correct the error before considering other measures. This must be done without significant inconvenience to you and within a reasonable time.

‍

When can you cancel your purchase?

Cancellation of the purchase means that the agreement is cancelled, and both parties return what they have received. This is applicable when:

• Material defect: The defect is so serious that it constitutes a material breach of contract.
• Failure to rectify: The seller has failed to rectify the error after repeated attempts or within a reasonable time.

‍

What about “as is” reservations?

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:

• Misinformation: Seller has provided incorrect information.
• Withheld information: Important information about the car's condition has been withheld.
• Significantly worse condition: The car is in significantly worse condition than you could reasonably expect.

‍

Seek legal assistance if necessary.

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.

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.

‍

Car purchases are regulated by various laws

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.

‍

When does the car have a defect?

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.

‍

Your rights

If the car has a defect that was not disclosed at the time of purchase, you may be entitled to:

• Correction: The seller will repair the error at no cost to you.
• Redelivery: Get a similar car that is free of defects.
• Price reduction: Get a reduction in price equal to the shortage.
• Cancellation of purchase: Return the car and get your money back.

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.

‍

Remember the deadlines for complaints

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:

• Relative deadline: Within a reasonable time after you discovered or should have discovered the defect.
• Absolute deadline: Two years after you received the car, or five years if the car was purchased from a dealer.

It is important to comply with both deadlines to maintain your rights.

‍

What do you do if the seller refuses to cancel the purchase?

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.

‍