New EU Law on Guarantees will affect second-hand car sales from January

New EU Law on Guarantees will affect second-hand car sales from January. Photo credit: pixabay

New EU Law on Guarantees will affect second-hand car sales from January

The new EU Law on Guarantees will come into force on January 1, 2022. This law will modify the way in which second-hand vehicles are sold.

Until now, these vehicles were covered with a one-year warranty at the dealership. During this period, in the event of a breakdown, the buyer had to prove that it had originated before the purchase.

These new regulations turn the tables completely. Sellers will now have to pay for the repair of any breakdown that occurs during those 12 months, if it was not reflected in the contract.

Marco Conde, CEO of Motoreto (a platform dedicated to the sale of second-hand cars), explained some of the key issues about the new Law of Guarantees to

What does this new change in the guarantee law consist of?

Two major aspects of the new law stand out, that directly affect the second-hand car sector. The first is that buyers can make a claim within 12 months, if they find a fault that was not reflected in the sale contract – the so-called “hidden defects” (which will have to be proven, according to the Law).

The second is related to the vehicle’s years of warranty. With this law, it will be necessary to offer 2 years warranty, unless another duration is reliably reflected in the sale contract between the dealer and the buyer.

Differences with previous legislation

The main difference is the time of the guarantee. Previously, Marco explains, you could use some fine print, and claim a “verbal agreement” between buyer and seller. This could reduce the car’s warranty from two to one year. With the new law, it is not possible to use that technique. Unless it has been clearly stipulated in the contract, the warranty will always be 2 years.

How does it benefit the buyer?

According to the CEO of Motoreto, it gives you more security when buying a used car. This is because it forces the buyer to increase and clarify the guarantee offered. On the other hand, it is a double-edged sword, because many more claims will be expected from buyers during those first 12 months.

There will inevitably be many who will try to take advantage of this situation to take advantage of the dealership, claimed Marco.

Can it have a positive impact on this market?

It is not so clear that it will have a positive impact, Marco confessed, especially in terms of sales volume. Furthermore, there is talk that it might create an increase in prices for second-hand cars, which is currently a market with high demand. “We will see what happens during the first months of 2022”, concluded Marco.


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Chris King

Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]