Is the seller refusing to cancel the car purchase? This is what you should know

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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