When selling a car privately, many sellers wonder whether they are liable for defects and to what extent. The good news is that, unlike commercial dealers, private sellers generally have no legal obligation to provide a warranty. What does this mean for you as a private seller, and what should you still keep in mind?
Excluding Warranty in Private Sales – Free from Liability?
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Indeed, as a private individual, you can exclude the warranty when selling a car. This means that you are not liable for defects that emerge after the sale, unless they were deliberately hidden. Such a warranty exclusion should be clearly and explicitly stated in the purchase contract to prevent future disputes.
Contract Wording – How to Exclude the Warranty
A standard wording for the warranty exclusion in the purchase contract is: “The vehicle is sold with the exclusion of any warranty.” It’s also recommended to explicitly state in the contract that the buyer had the opportunity to thoroughly inspect the vehicle before purchase.
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Liability for Defects vs. Fraudulent Concealment – What’s the Difference?
Even though you can exclude the warranty, you are not free from all liability. You remain liable for hidden defects that you have knowingly concealed. This is referred to as fraudulent concealment (Arglist) and can have legal consequences.
Example: You are aware that your car’s engine has a defect but intentionally fail to disclose this to the buyer. If the engine fails shortly after the sale, the buyer can sue you for damages even if you excluded the warranty.
What does “bought as seen” mean in a private car sale?
The clause “bought as seen” reinforces the warranty exclusion and is intended to ensure the buyer is fully aware of the vehicle’s condition. However, it does not release you from liability in cases of fraudulent concealment.
Tips for a Safe Private Sale
To avoid future problems, you should follow these tips when selling a car privately:
- Honesty is the Best Policy: Do not conceal any known defects.
- Detailed Purchase Agreement: Document all relevant information in writing, including the warranty exclusion and the “bought as seen” clause.
- Thorough Inspection: Provide the buyer with ample opportunity to inspect the vehicle.
- Allow a Test Drive: A test drive gives the buyer an additional impression of the vehicle’s condition.
Conclusion
Selling a car privately allows you to exclude the warranty. However, you should always be honest and transparent with the buyer to avoid future legal repercussions.
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Need help selling your car or have more questions about warranty? Don’t hesitate to contact our experts. We’re here to provide guidance and support!
