Buying a car from a car dealer

Keep this in mind when you are purchasing a car

• Always read the contract and product declaration.

• It is an extra security for you to buy a car from a dealer who is a member of the Swedish Motor Trade Association, MRF.

• You always have the right to complain for 3 years if you purchase a new or used car from a car dealer.

You are protected by the Consumer Sales Act

When you buy a car from a car dealer, you are protected by the Consumer Sales Act. This law is compulsory, which means that the car dealer may not give you worse terms and conditions than the law states. According to the Consumer Sales Act, you are always entitled to file complaint on a defect for three years. This applies even if you have bought a used or very inexpensive car from a car dealer.

Warranties that come with the car

It is always optional for a company to provide a warranty on a car. But it you purchase a new car some warranties are usually included.

What is warranty?

A warranty means that the seller is responsible for the functioning of the car or a certain characteristic in the car for a certain period. When you have a warranty, the seller has the burden of proof, not you. If there is a fault on the car during the warranty period, the seller must prove that the fault is not covered by the warranty.

Know your warranty

Make sure that you know what the warranties are and what applies so that you can use them. Special requirements can be placed on you as the car owner for a warranty to apply. A new car warranty may, for example, require that you turn the car in for service at certain intervals and that you have the car serviced at a workshop that meets the requirements on professional work.

You can always complain if there is a fault

Remember that you always have a three-year guarantee on the car regardless of what warranties you have.

Research the market

It can be difficult to choose which car to buy. Cars are expensive, and there are many things to consider when choosing between different car models.

There is a lot of information on cars on the Internet that can help you in choosing a car. Reading reviews and tests increases the chance that you find a car that will suit you and your wallet.

It may also be a good idea to check the car dealer. Search on the Internet and read reviews of the car dealer from other consumers.

You can also search in the Swedish Consumer Agency’s register to see if a company has had reports against it from consumers. Search directly in the Swedish Consumer Agency’s register (information in Swedish)

Financing of your car purchase

You might need to borrow money to be able to buy a car. Make sure you can afford the repayments and the interest. If you do not take care of the payments, the lender may be entitled to take the car. You can borrow up to 80 per cent of the price of the car, and the remaining 20 per cent is your own down payment. You can pay for it in cash or by turning in a trade-in car.

You can read more about car loans on the Swedish Consumers’ Banking and Finance Bureau website (information in Swedish)

Trade-in car

When you buy a car from a car dealer, you can turn in a trade-in car to the seller as part of the payment. Even if the trade-in car is a part of the payment, it is important to remember that you are selling a car to the car dealer and that it becomes its own agreement between you.

It is the Sales of Goods Act, not the Consumer Sales Act, that regulates what applies when you sell your car to a car dealer.

It is your responsibility to ensure that the trade-in car is in the condition you agreed on and that it does not have any faults that you are aware of and have not told the seller.

Product declaration for a used car

Ask to receive a product declaration when you buy a used car from a car dealer. Read through it carefully. The product declaration contains information about the car so that you will easily get a picture of what condition the car is in. Make sure that both you and the car dealer sign a copy of the product declaration if you decide to buy the car.

Insurance

All cars in Sweden have to be insured. A vehicle-damage guarantee that usually applies for three years most often comes with newly manufactured cars. The vehicle-damage guarantee corresponds to vehicle-damage insurance. If the car has a vehicle-damage guarantee, you do not need to take out vehicle-damage insurance during that time. The vehicle-damage guarantee accompanies the car so if you buy a used car that still has a vehicle-damage guarantee, you do not need to take out vehicle-damage insurance for the guarantee period.

Read more about car insurance and what insurance you need on the Swedish Consumer’s Insurance Bureau website (information in Swedish)

Advantage of buying from an industry affiliated car dealer

When you buy a car, it may be an extra security to buy from a car dealer that is a member of the Swedish Association for Motor Retail Trade and Repairs (MRF).

If you end up in a dispute with a car dealer, you can take the dispute to the Swedish National Board for Consumer Disputes (ARN). ARN provides a recommendation on how the dispute should be resolved. A car dealer that is a member of MRF has pledged to follow ARN’s recommendations.

Industry agreement

The Swedish Consumer Agency and MRF have an industry agreement called MRF’s Delivery Terms for Passenger Cars. The agreement clarifies what applies between you as a consumer and the car dealer. This may involve, for example:

• delivery terms

• complaints

• sanctions in the event of faults.

All of MRF’s member companies have committed to follow the guidelines in the agreement.

Always write an agreement with the car dealer

Make sure that everything you and the car dealer have agreed on is in a purchase contract. This may involve:

• the delivery date

• warranties

• what accessories are to be included in the purchase.

Also make sure that everything that the seller promised you orally is confirmed in writing. It is best if everything is included in the purchase contract, but if it is missing there, you can, for example, have it in an email or in a text message.

The car dealer is bound by everything that has been promised before the purchase unless it was changed before the purchase, such as in the agreement between you. This may involve information provided to you directly, but also in marketing or locations, such as the car’s windscreen.

The Consumer Sales Act applies

When you buy a car from a dealer, the Consumer Sales Act applies. It is mandatory to your advantage. This means that an agreement with the dealer can never give you fewer rights than what the law states. If the agreement gives you fewer rights than what the Consumer Sales Act states, those parts of the agreement are invalid.

Right of withdrawal and cancellation

If you buy the car on-site at the dealer’s premises, you have the right to cancel before the car is delivered to you. The dealer cannot require you to complete the purchase and pay for the car. However, the company has the right to demand compensation from you if they have incurred costs in connection with the order.

If you buy the car remotely, for example via the internet, you may have the right to withdraw. However, it requires that the company has an organized system for distance contracts, meaning that they usually enter contracts remotely and, for example, write ‘buy your car on our website’ or similar. Or that you enter into the agreement outside the company’s premises.

You can withdraw from the purchase within 14 days from receiving the car.

The rules for cancellation and withdrawal apply to both new and used cars.

Can the car dealer cancel the contract?

The general rule is that contracts must be honored by both you and the company. This means that both parties are bound by what you have agreed upon. However, there are certain situations where the company may have the right to cancel the contract.

Force majeure

Force majeure is a legal term for unexpected or unforeseeable events. Force majeure is used for situations where the event makes it impossible for the company to fulfill its part of the contract.

There is no requirement for the contract to specify which events are considered force majeure, but it is good if it does and as clearly as possible.

Examples of events often referred to as force majeure are:

• natural disasters

• war

• labor disputes

To claim force majeure, there must be a connection between the event and the breach of contract. If the company claims that force majeure exists, they need to be able to prove it. The assessment is made from the individual company, and the event must affect the company’s ability to fulfill the contract.

Auctions where the bidding takes place exclusively remotely

You have a 14-day right of withdrawal when you buy a car at an auction where the bidding takes place exclusively remotely, for example, on the internet. The right of withdrawal starts from the day you pick up or receive the car.

When you use your right of withdrawal, you should get back what you paid for the car, including the auction fee added to your winning bid.

You can inspect the car before you withdraw. However, if you inspect the car more than necessary, you may need to compensate the seller for any depreciation in the car’s value.

No right of withdrawal if you can participate in person

Remember that you do not have the right of withdrawal at traditional auctions, that is, where you can participate in person in the bidding. You also do not have the right of withdrawal at auctions where the seller is another private individual. Read the auction terms to see who you are buying from.