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What is meant by material defect liability?
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What is a material defect on the car?
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How are material defects differentiated?
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How long is the warranty period for material defects?
- This is how buyers assert liability for material defects
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Can liability for material defects be excluded?
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What does liability for material defects mean?
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Is liability for material defects the same as warranty?
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What is the difference between liability for material defects and guarantee?
- Conclusion: More security for buyers by law
What is meant by material defect liability?
According to the BGB, liability for material defects guarantees the car buyer more security. It covers damage that already exists when the vehicle is handed over but only becomes apparent later. Of course, anyone who buys a used car wants to be able to rule out any defects.
The liability for material defects makes the seller responsible for any defects that may occur in the first two years liable insofar as he bears the sole risk. Companies can set the deadline in the sales contract shorten to one year. Private individuals are excluded from liability for material defects.
What is a material defect on the car?
If damage occurs, many consumers are faced with the question of whether it is a material defect. Damage to the car can only be defined as a material defect if it when handing over the vehicle was present.
According to the law, damages that within the first 6 months occur to be accepted as a material defect. For contracts from January 1st, 2022, the current case law extends this period 12 months out. After a longer period of time, the buyer must be able to prove that the damage already existed when the vehicle was purchased. As a consumer, it is often worthwhile to consult an external expert. He has sufficient experience to be able to determine a material defect.
How are material defects differentiated?
If a material defect is proven to exist, the material defect liability comes into effect. Material defects can occur very differently and depend heavily on the respective situation. Typical examples of defects that fall under the liability for material defects can be classified as follows.
nature
If the vehicle or the supplied parts are not the agreed quality correspond, there is a material defect. This category includes, for example, the display of the mileage, which is suddenly much higher than the number agreed in the purchase contract.
Assembly
If parts on the car are not properly installed and the assembly error becomes noticeable after some time, this also falls under the liability obligation. A typical example is a hanging exhaust pipe. The buyer thus has the right to demand that the seller remove the defect.
Likewise one can faulty instructions pass as a material defect for self-assembly. Because the instructions are deficient, it may cause future damage to the vehicle.
wrong delivery
Consumers can declare all types of wrong delivery as a material defect. If, for example, the vehicle is not in the agreed color when it is delivered, or if too few or too many spare parts have arrived, the buyer has a right to liability on the part of the seller.
Insufficient functions
If the vehicle or its components are restricted in their function, there is a material defect insufficient function before. This can affect all parts supplied, such as a roof stand or the car radio. If a defect occurs here within the period, the seller is obliged to rectify the defect and possibly to a refund.
However, liability for material defects is excluded normal signs of wear on the vehicle. These can vary depending on the age, mileage and condition of the car. This includes, for example, the Wear and tear of tyres, brakes, toothed belts, V-belts and the car battery. In such a case, the seller is not obliged to pay for any damage.
How long is the warranty period for material defects?
The warranty period is set by law at two years. However, dealers can contractually shorten it to one year. Especially in the used car business, most car dealers reduce the liability for material defects to one year. The period of liability for material defects can usually be either in the purchase contract or in the general terms and conditions hold onto.
While dealers often shorten the period to one year, there are already some court rulings that have held the seller liable for a material defect even after a year has elapsed.
This is how buyers assert liability for material defects
If the existing damage is defined as a material defect, the buyer must inform the dealer immediately. All costs for the repair are therefore borne by the seller. This includes towing costs to the workshop and any costs incurred for the damage itself. This also includes the labor hours and any material costs. However, the costs for a rental car or a possible loss of earnings of the buyer are usually excluded.
In the past, the retailer had two attempts for a repair. Since January 1st, 2022, the number of rectification attempts depends on the individual case. If the material defect is still not completely eliminated after the corresponding attempts at rectification, the buyer has the right to a equivalent replacement vehicle, purchase price reduction or withdrawal from the purchase contract.
A rescission occurs mainly only in the case of a significant defect. The buyer gets most of the time not the full amount refunded, as he has usually used the vehicle for several months. Using the vehicle until it is fully returned will affect the refund amount.
A immediate resignation from the purchase contract is only possible in very rare cases, for example in the case of a fraudulent deception. This occurs when the seller consciously conceals an existing damage. Malice is often difficult to prove.
Can liability for material defects be excluded?
Liability for material defects is regulated by law in § 434 BGB. A company can reduce liability for material defects in the purchase contract, but an exclusion is not possible.
A company cannot therefore avoid liability for material defects. A written exclusion in the general terms and conditions or in the purchase contract is not legally binding. However, a reduction to one year is effective if this is stated in the purchase contract. Anyone who forgets to reduce the liability for material defects in the purchase contract must comply with the statutory deadline. Not only dealers count as companies, but also people who have used their vehicle commercially or as part of their self-employment.
What does liability for material defects mean?
Private sellers can exclude liability for material defects when concluding the contract. In this case, the seller is not liable for any damage that occurs. The buyer has to bear 100% of the repair costs himself.
Although private individuals are exempt from liability, they have to go through it a clause in the contract of sale exclude. If liability for material defects is not excluded, a statutory period of two years also applies to private individuals.
Again, the disclaimer does not apply fraudulently concealed defects. A private seller is also considered liable here if fraudulent intent can be proven. In individual cases, the private seller must also be liable if, for example, he promises a “technically perfect” vehicle and defects subsequently appear. When drawing up the purchase contract, the seller should therefore always pay attention to the choice of words.
Companies, on the other hand, cannot contractually exclude liability for material defects, as this is binding. However, if a dealer has already reported existing damage and unusual signs of use when concluding the contract, he is not liable for this.
Is liability for material defects the same as warranty?
Yes, the warranty is a liability for material defects. Both terms mean the legal obligation to hand over an item to the buyer without defects. Otherwise, the sellers are liable for any defects that occur. The warranty or liability for material defects is unavoidable for dealers.
What is the difference between liability for material defects and guarantee?
A guarantee is a private and voluntary agreement that is not regulated by law and in many cases requires a surcharge. The seller can provide the consumer with a guarantee in which, for example, he condition or durability of an item insured and sets the terms of the guarantee. The seller also determines the duration of the guarantee himself.
A guarantee offers buyers an advantage: Even after the first six months, they do not have to prove that a defect was already present when the vehicle was handed over. As long as the damage occurs during the warranty period, the insurance will cover the costs incurred.
If a defect occurs, the buyer should always first clarify whether the liability for material defects applies before making a claim under the guarantee. Otherwise the liability for material defects may expire. A possible purchase price refund or a vehicle exchange can then no longer take place.
Conclusion: More security for buyers by law
Used cars do not always come with a warranty. Therefore, used car buyers in particular are always exposed to a certain risk. In order to avoid unexpected repair costs due to unnoticed damage when the vehicle is handed over, liability for material defects is regulated by law. Companies can be liable for defects that occur.
As a private individual, it is advisable to take out liability for material defects excluded directly by a clause in the contractto avoid liability.
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