When selling used cars, people often confuse the statutory warranty with a voluntary warranty —yet they are two completely different things. The statutory warranty is required by law, while the voluntary warranty is an optional additional service. Dealers should be fully aware of the difference.
Key Takeaways
- The warranty (liability for material defects) is required by law and cannot be excluded in sales to consumers.
- For used cars, the warranty period for consumers may be reduced to one year.
- The warranty is voluntary and is agreed upon separately.
- Private sellers may validly exclude the warranty, but dealers may not do so with respect to consumers.
What is the warranty?
The warranty—legally known as liability for material defects—is the seller’s legal obligation to ensure that the item is free of material defects at the time of delivery. It is based on the German Civil Code and applies regardless of whether it is mentioned in the contract. In sales to consumers (B2C), a merchant cannot exclude the warranty; however, for used cars, the merchant may limit it to one year. Furthermore, within the first twelve months, the burden of proof is reversed in favor of the buyer.
What is the warranty?
A warranty is a voluntary, contractual commitment—for example, from a retailer, manufacturer, or warranty provider. Its scope, duration, and terms can be freely defined and are set forth in the warranty terms and conditions. A warranty is provided in addition to the statutory warranty and does not replace it.
Warranty and Guarantee: A Comparison
- Basis: Warranty = statutory; Guarantee = voluntary/contractual.
- Requirement: A warranty is mandatory (cannot be excluded in B2C transactions); a guarantee is optional.
- Time of Defect: A warranty is based on the condition at the time of delivery; a guarantee may also cover defects that arise later.
- Scope: A warranty is defined by law; a guarantee is subject to the agreed-upon terms.
What Retailers Should Keep in Mind
Car dealers should thoroughly document the vehicle's condition at the time of delivery—including any known defects and work performed. This ensures legal certainty and prevents disputes. With CATAMA's vehicle management system, you can record the condition, history, and documents for each vehicle; specialized software for the automotive industry supports you with sales contracts and billing.
Frequently Asked Questions
What is the difference between a warranty and a guarantee?
The warranty refers to the seller's statutory liability for material defects. The guarantee is a voluntary additional service with terms and conditions that can be freely agreed upon, and it is provided in addition to the warranty.
Can a retailer exclude the warranty?
A dealer cannot exclude the warranty for consumers. However, for used cars, the dealer may limit the warranty to one year.
How long is the warranty on a used car?
When selling to consumers, the warranty for used cars is at least one year, unless it is shortened by contract.
Is a retailer required to offer a warranty?
No. A warranty is voluntary. Only the statutory warranty is mandatory.
Note: This post is for general informational purposes only and is not a substitute for legal advice.
