Bought a car with hidden defects and flaws? This is what you should know

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Published: Jan 16, 2025

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.

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Does car insurance cover legal fees in case of a dispute with the seller?

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.

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