A defect in a new car

A technical fault in a new car is usually a defect.

Examples of technical faults:

• faults in vehicle electronics or information technology
• engine malfunctions: the engine cuts out while driving or runs roughly
• fault indicator lights are turned on and no cause for this can be found
• automatic transmission does not work properly
• problems with the batteries in electric and hybrid cars
• a component falls apart, and the failure is not caused by normal wear and tear, inappropriate use or an accident.

There are differences in the prices, standard, accessories and quality of cars. You have the right to expect normal expediency and adequate quality of the car.

The price, the information provided about the car before the sale, and the notion created by marketing and during the sale influence what you can expect of a car. You can expect more of an expensive top model marketed as a luxury car than of an affordable ordinary model.

It is not always clear what constitutes a defect and what is quality of the car. Even if the car has inconvenient qualities, they are not necessarily classified as defects. The volume of tyre noise, for example, may vary depending on the type of tyres fitted on the car and the road surfaces you drive on. This is not necessarily a defect, however.

During the sale, the customer should be informed about any quality that is different from other similar car models. For example: because an electric car does not have a quick charge quality, it is not suitable for driving long distances in winter.

Even so, this quality must not complicate or prevent normal use of the car or endanger traffic safety. The consumer’s justifiable expectations, including the information provided during the sale and, on the other hand, consumers’ common expectations regarding the qualities of similar car, delineate the estimation of a quality or a defect.

The new car must be as agreed when the sale was concluded. If the car does not have an accessory or function that it should have had based on the contract of sale or brochures and other marketing material presented by the vendor, this is a defect. The missing accessory or function may be a factory accessory or something that can be installed subsequently.

In addition to the information the vendor presents during the sale, you can also appeal to information provided by the previous level of the supply chain, including the importer or manufacturer, related to a vehicle intended for the Finnish market.

An exception to this are situations where the vendor clearly stated during the sale that the information for the product provided by the importer or manufacturer is differ from the car being sold. Such information may, for example, be occured on the importer’s or manufacturer’s website.

The car dealership is primary liable for a defect in a new car. The vendor cannot force the consumer to agree on repairs or other compensation with the importer or a provider of after-sales service. Should the consumer so wish, he or she may also address a complaint to the importer or manufacturer.

It is usually a good idea to address complaints to the importer, who is the manufacturer’s representative. It is recommended to inform the contracting party (vendor) of any defects in the car and progress made with repairs even if the importer is responsible for them. If rectifying the defect last unreasonable long time, you should contact the vendor about such demands as cancellation of the contract.

The manufacturer and importer are not responsible for any defects that have arisen for causes independent of them after the car was handed over to the retailer. This includes defects caused by incorrect information provided by the vendor or defective maintenances and repairs to the car.

When you notice or suspect a defect in your car, notify the vendor about it as soon as possible and, during the warranty period, also the party determined in the warranty terms.

• By the law, the vendor should be informed within a reasonable time after you discover, or should have discovered, the defect.
• However, the period for notice of defect is always at least 2 months after you discover the defect.
• You can always also appeal to a defect if the vendor’s conduct has been grossly negligent or incompatible to honour and good faith; for example, they have not told you of a defect they were aware. This also applies to situations where a defect in the car endangers safety.
• It is best to make the notice of defect in writing, for example by e-mail, and keep a copy of the message.

When the defect is notified, the vendor or the guarantee has the right to rectify the defect at its own expense at any repair shop they may choose.

Filing a complaint with a company

Sometimes a defect in a new car is difficult to prove. The fault may only occur occasionally, or there are deficiencies in the functioning of the car which, according to the vendor, are commonplace qualities. You can ask the vendor to obtain an impartial expert opinion from a goods inspector or similar.

If the vendor declines to diagnose the fault, you can also obtain an expert opinion yourself. If a defect is found in the car, you can demand the vendor to compensate you for the cost of having the fault analysed subsequently. If no defect is found, you will have to pay the cost of obtaining the expert opinion yourself.

The primary method of rectifying a defect is repair.  The vendor has the right to ascertain and repair the defect. The repairs must be performed within a reasonable time, without decreasing the value of the car and without incurring significant inconvenience to the buyer.
If diagnostics prove the car to be free of defects, the vendor may charge you a reasonable payment for diagnostics, if this has been mentioned or agreed beforehand. If a defect is found in the car, the vendor must pay all the diagnostic costs.

Repairs by the warranty are always free of charge. Defects not covered by the warranty in a new car are usually also repaired free of charge.

After the warranty period has expired or after some time has passed since the car sale, it is needed to evaluate if the car will be in better condition after the repairs with new parts than corresponding cars in terms of age and mileage. If the car’s condition improves when the defect is repaired, you can be expected to contribute to the repair costs.  For example, the repair costs can be shared based on the expected life time of the replaced part.

If you do not notify the vendor about the fault before it is repaired, you may lose the right to full compensation even if the fault in your vehicle were a defect.  You should always contact the dealership before having the car repaired if you suspect that the fault was caused by a defect for which the vendor is liable. Thereby you can avoid disputes related to the vendor’s opportunity of repairing the defect.

However, you do not necessarily completely lose your right for compensation even if the vendor did not have this opportunity.

• The vendor may be liable for the costs of repairs performed before your notice of defect if you cannot contact the vendor, or if the repair cannot be postponed without unreasonable inconvenience, for example if the defect has to be repaired urgently bound for another locality.
• Additionally, in accordance with the Consumer Disputes Board decisions if a car is defective, the vendor must compensate you for the costs that the vendor would have accrued if they were given the opportunity to repair the defect.

A new car may be replaced by another corresponding one if the defect cannot be repaired within a reasonable time. The fault must also be so major that a price reduction, for example, would not be sufficient as compensation.

When the car is replaced, the buyer must pay for the use they had out of the first car before it was replaced. This is usually calculated based on the mileage the car has done.

Such situations are rare. When the consumer has bought a new car, replacing it can be an alternative to cancelling the sale

If the defect cannot be rectified and it is of minor significance, the defect can be compensated by reducing the price proportionate to the defect.

For example, a price reduction may come into question in the sale of a new car if the car does not have an accessory it should have had, and installing the accessory subsequently is not possible, or it would be unreasonably expensive for the vendor, considering the significance of the defect to the buyer. The car may also have a deviant quality that cannot be removed.

When evaluating the insignificance of the defect, its significance for using the car as a whole is considered.  For example, many comfort accessories are considered insignificant for the car’s usability, and the fact that they are missing does not usually entitle to cancel the purchase.

Cancellation of sale is usually the final option for compensation. Cancellation is not possible, if the defect is insignificant. For example, repeated and unsuccessful attempts to repair the same fault may entitle the buyer to cancel the sale.

There is no specific limit on the number of attempts that must be allowed to the vendor or guarantee to repair the fault. A car is a technically complex equipment, which means that the buyer should usually accept a few attempts at repairing the fault. The car dealership and guarantee may sometimes wish to continue with repair attempts for a long time. As the buyer, you can reveal the right of cancelling the contract if no progress is made with the repairs or the fault recurs.

You can demand for cancellation if the attempted repairs fail or they do not correct the fault permanently. Then you can set a deadline for the repairs and thereafter demand that the sale must be cancelled if the fault has not been repaired or if it recurs later.

When the contract is cancelled, your return the car to the dealership. The dealership will remunerate you the sale price of the car and profit interest, from which the benefit of using the car has been deducted, usually based on your mileage.

Typically, the operating benefit is estimated around EUR 0.10 – 0,30 /km depending on the price of the car.

According to the legal practice of the Consumer Disputes Board if the sale is cancelled during the warranty period, this deduction may not be made.

If new parts or accessories have been installed in the car while you owned it, the vendor must also reimburse you for them when the purchase is cancelled, as they will be a benefit for the vendor.

You may also be entitled to compensation for damage caused by any defect in the car.

No compensation is given for trouble and upset or emotional distress.

For example, you may be compensated for the reasonable travel, postage and telephone costs caused by a defect, and the cost of having the defect or fault analysed, if the vendor did not analyse the fault. They may include the troubleshooting or diagnostic costs.

If you need to use a car while the car in question is being repaired, ascertain if the vendor can offer a substitute car, free of charge, for the duration of the repair. If the vendor does not offer a substitute car, compensation can be demanded for required costs caused by not having access to one’s own car.

You must always have a receipt or other reliable explanation of the costs incurred. Both the consumer and the vendor must act to ensure that the costs caused by the damage are as limited as possible.

Compensation for indirect damage may be claimed in cases where the damage was caused by a company’s (vendor, other contracting party) negligence.  For example, when the company’s negligence results in essential loss utility due prolonged repair, even if it does not result in direct economic loss, and a loss of income if you have had to take time off work in order to investigate or repair the defect unpaid.

A technical fault in a car cannot typically be considered the result of negligence by the seller or guarantee.