Eligible for guarantee
Purchasing a used or second-hand vehicle, hence a unique model with individual history, can always imply a certain risk. However, the risk of purchasing a used car can be reduced significantly nowadays, by buying a used car guarantee.
Contrary to liability for material defects, the used car guarantee is not stipulated by law, reason why it is not uniformly regulated. In the majority of cases though, vehicle traders in Germany offer their used vehicles with a used car guarantee that can be purchased. As a rule, an agreement between the buyer and an insurance company comes into effect in the case of a used car guarantee. The used car guarantee, in comparison with the liability for material defects, goes further. Therefore it is completely irrelevant whether the defect is detected upon the transfer of the vehicle or later on. This is where the advantage of a used car guarantee is visible. If the purchase of the vehicle took place prior to 6 months, the buyer must prove that the defect already existed when the vehicle was delivered. If he/she fails to do so, he/she might not be able to make any claim for liability of material defects, but under the used car guarantee, this is certainly possible. Hereby it is naturally important that the defect occurred within the guarantee time. As a rule, the guarantee time period is one year. Whereby it is also possible to take out longer guarantee periods with the respective insurance company for an additional charge and taking as a basis higher performance prerequisites. Whoever wishes to take out a guarantee insurance for his/her “new” used car should pay attention to extent of guarantee. Of course we will be pleased to help you with this. After all, there is – as with every insurance – a whole range of exclusions or deductibles, for instance regarding wear parts. Some guarantee conditions even foresee declining benefits depending on the mileage or maximum amounts dissociated from the actual level of damage. Of course not every used car is eligible for guarantee, a fact which can be particularly true for older vehicles.
The difference between warranty and guarantee.
Even though the terms “Guarantee” and “Warranty” play an important role on a daily basis, often they are not correctly understood. In contracts these are consistently confused.
Roughly this is valid: Warranty is a matter for traders, guarantee is up to the manufacturer. The question that remains: When is which one effective and what is the difference?
What is a warranty?
Warranty (liability for defects, guarantee for defects) means that the seller is vouches that the sold object is free of defects as to quality and title.
The warranty is a legally vested right of the buyer. This right is stipulated by § 434 of the German Civil Code (BGB).
The warranty covers defects that the product already had at the time of purchase.
Hereby during the first 6 months following delivery, it is presumed in favour of the consumer, that the goods were already defective at the time of delivery, unless the seller can prove that the defect did not exist at the time of delivery. If the customer notices the defect later than 6 months after the purchase, then the burden of proof changes. This means that as of that date, the buyer must prove that the object already had a defect when it was delivered.
The warranty period is 24 months according to § 438 BGB (German Civil Code) and can be reduced to 12 months for used cars by means of General Terms & Conditions or per agreement between both parties.
What is a guarantee?
A guarantee is a declaration of the seller (§443 BGB), which justifies further claims in addition to the legal entitlements. In plain language: It is an additional, voluntary and customisable service that a dealer or manufacturer provides to the customer besides the legal warranty obligation.
Such a promise of guarantee mostly applies to the operational capability of certain parts (or the entire object) for a specific time period. In case of a guarantee, the condition of the goods at the time they were handed over does not matter, since hereby the operational capability is guaranteed for the time period. Whereby wear parts are excluded from the guarantee in most cases.
Important: With a promise of guarantee, the statutory warranty is not replaced or even – in its extent or duration – reduced on no account, it is always used apart from or in addition to the statutory warranty.
Ultimately, a guarantee is always a matter of agreement. What guarantee is agreed to in individual cases, how long and whether an agreement even takes place, this is up to the contracting parties.
Any further questions regarding guarantee or warranty? Then simple write to us!