What does the seller of a used car have to guarantee and what does a short-term "commercial guarantee" really mean?
When buying a used car that is no longer covered by the manufacturer's warranty, buyers are often tempted by additional offers such as "3 months warranty", "5,000 km warranty", "6 months trouble-free". Such promises may sound attractive, but from a legal point of view, what matters is not what the seller promises, but what the seller's real obligations are under the law, and what these additional "commercial" guarantees actually mean. "The seller's obligation to guarantee the quality of a used car is a legal one - it cannot be replaced or limited by short-term warranties. However, in practice we often see that warranties of a few months protect the seller rather than the buyer," says Mantas Baigys, a lawyer at AVOCAD.
Seller's obligation to ensure quality
According to the Civil Code of the Republic of Lithuania, the seller of a used car must guarantee that the item sold is of the right quality, i.e. that it is free from hidden defects of which the buyer has not been informed. Whether or not an additional commercial guarantee has been given. According to an AVOCAD lawyer, if after the purchase it turns out that the car had hidden defects that the buyer was not informed of - for example, defects in the engine or gearbox - the buyer has the right to claim, at his or her own option:
- free of charge to fix defects,
- reduce the purchase price,
- reimbursement of repair costs;
- replacing your car (if possible);
- or, if the defect is material, terminate the contract and refund the money.
"It's important to understand that this obligation is not an additional service - it's a statutory responsibility. The buyer does not lose the right to claim, for example, reimbursement of the costs of repairing hidden defects in the car, just because the 'commercial' warranty of a few months or the mileage specified in it has expired," notes Baigys.
Commercial guarantees - attractive but limited
Used car dealers often offer short-term warranties such as "5,000 km warranty" or "6 months protection". These warranties usually cover only a few parts of the car, and the exceptions sometimes outweigh the real benefits. "A typical case is a buyer purchasing a car with a 5,000 km warranty. A month later, after a little more driving, the car breaks down (e.g. engine failure) and the seller declares that the warranty is no longer valid. However, if the breakdown is caused by a defect that existed at the time of sale, the seller is liable for it, whether or not the commercial warranty was provided," says the lawyer. Such so-called commercial warranties often give the false impression that the buyer's rights also end at the end of a specified period or number of kilometres. "This is not true. The law protects the buyer against hidden defects regardless of the terms of the additional commercial guarantee. It cannot exclude the seller's liability for a defective product," stresses Baigys.
Can I take legal action if the guarantee has expired?
According to the lawyer, this is one of the most frequent questions from buyers. "Yes, you can," the lawyer makes clear.If the defect is due to a cause that existed at the time of sale and was not brought to the buyer's attention, the buyer can go to court and claim, for example, the cost of repairs, even if the warranty has technically expired or the "warranty" mileage is exceeded.
In deciding on the quality of the sold item, the case law of the Supreme Court of Lithuania has noted that the buyer must prove that the sold item is of inadequate quality, i.e. that it cannot be used for its intended purpose, that it does not meet the quality requirements for items of this kind, and that at the time of the purchase the buyer did not know and could not have been aware of the defects in the sold item. However, it is for the seller to prove that the defects in the goods sold arose after the conclusion of the contract of sale or through the fault of the buyer, that those defects are not attributable to causes which arose before the sale of the goods, that the buyer, as an average and prudent buyer, should have been aware of the possible defects in the goods sold, and so on, that is to say, that those defects reduce the seller's responsibility for the quality of the goods sold.
"The seller is not liable because the warranty has or has not expired, but because he sold a poor quality car. This is a matter of law, not a matter of contract," emphasises Mr Baigys.
When does a guarantee really make sense?
Additional guarantees can only be useful if they complement, not replace, the buyer's rights under the law. For example, if they provide real benefits - faster service or a wider service network, or remedying defects in the car that are not related to hidden defects - they have real value. But when a formal commercial guarantee becomes a way of limiting the seller's liability for the quality of the item, it loses its meaning.
"Short-term guarantees often look attractive, but their aim is not to guarantee quality but to create an illusion of security. A short warranty or a few thousand "warranty" kilometres does not change anything - if the car was sold with a defect, the buyer has the right to claim, for example, reimbursement of the costs, whether or not there was an additional commercial warranty," says Mr Baigys.
Finally, one key piece of advice - in all cases, assess what your legal rights are and then assess whether, for example, the seller's refusal to repair hidden defects in the car, e.g. under the guise of a commercial warranty, is actually in line with the legal framework.