Protection for used-car buyers

HOLLYWOOD mogul Sam Goldwyn's frequently quoted comment about verbal contracts not being worth the paper they were written on lost much of its currency towards the end of last year, following a Circuit Court judgment which declared that what a salesman tells a client about a second-hand car carries as much weight as a written guarantee, reports CONOR POPE

The judgment, made by the president of the Circuit Court Judge Matthew Deery in a faulty car claim, effectively means “no warranty”, “sold as seen” and other get-out clauses – which some car salesman have been known to fall back on when confronted by disgruntled customers with steam coming out of their ears and their engines – are legally meaningless, particularly if the salesman talked up a car’s good points to secure the sale.

The judge said the question of a written warranty did not arise in a case where a Co Dublin man sued a garage over a turbocharged Subaru Legacy car which he bought in February 2008.

He said the buyer, Francis White, was entitled to believe the car – which cost €13,000 – was “in fair and straight condition”, as represented to him by Jim Moriarty of Motoright Ltd in the Greenhills Industrial Estate in Walkinstown.

The judge accepted the dealer may genuinely have believed the car was in good condition but, as the vendor, “giving such a representation meant the responsibility rests with him”.

After the buyer took possession of the car, which had been changed from automatic to manual, it developed problems with the gearbox, the clutch, the steering and the electrics. The court was told Motoright refused to repair the vehicle or return the buyer’s money.

The garage owner disputed this and said White bought the car without a warranty. He said twin turbo cars were bought to be driven hard and he said his garage would not give a warranty with such a car. He also told the court the buyer never brought it to his attention that there were faults in the car and had not given the dealership a chance to repair the vehicle before issuing legal proceedings.

The judge found in favour of the buyer and awarded him a decree for €13,000 against Motoright and directed the car be restored to the garage.

The case raises an interesting question about the nature of warranties and the level of responsibility a dealer has to the buyer. Under the Sale of Goods and Supply of Services Act, 1980, a car must be in roadworthy condition when sold and has to be fit for purpose. If it’s not, the buyer has comeback, irrespective of any get-out clauses the dealers may think they have.

Alan Nolan of the Society of Irish Motor Industry says the legal protection consumers have when buying cars from dealers is rock solid.

He says in the distant past, cases of consumers complaining about being sold cars of questionable quality without any class of warranty would frequently come before the industry’s arbitration panel but, he says, such cases are rare now.

“A consumer buying a car from a professional dealership is entitled to expect that the car is of merchantable quality and fit for purpose. If not, they have the same consumer protections that are afforded to anyone else.”

He says a warranty is not essential to exercise these rights but adds that they do have an advantage in that they can save hassle and cover grey areas such as wear and tear.

While consumers have very clear rights when they buy cars from dealers, rights which were highlighted in the Circuit Court last week, it’s a whole different ball game if a car is bought privately.

A private seller opens themselves up to legal action if they knowingly supply a seller with information which is false but they are not expected to be as familiar with the internal workings of the engine as a dealer is, so if a car develops a chronic fault 15 minutes after you drive off in it, the seller can plead ignorance and the sale stands.

There is a requirement on a private seller to give accurate and truthful information in response to any questions thebuyer asks but there is no obligation on them to offer up any information freely, so the onus is on the buyer to ask the right questions – the National Consumer Agency’s website (consumerconnect.ie) has a list of suggested questions. And, always, always get the car checked by a mechanic.