Legal Updates

A used vehicle trader must report a car accident that the car passed both in the publication of the car and in the due diligence form at the sale

April 8, 2018

A used car trading company published an ad in which it wrote that the car did not pass any accidents.  A representative of the company went with the buyer to a garage that reported that the car has no material issues and the buyer purchased the vehicle. However, shortly after the purchase and after repeated mishaps, he sold the vehicle and in an examination done for the purchaser of the vehicle from him it was discovered that the vehicle had previously passed an accident.

The Court held that a seller of a used vehicle is obliged under law to publish true data and fill out a very detailed disclosure form regarding the condition of the vehicle, without which it risks misleading the buyer. Here no damage of loss of car value was caused because the car was sold at a similar price to the purchase price but the buyer was afforded reimbursement of costs and compensation for non-monitory damage.