Question from a reader:
I purchased a used car, but immediately encountered a problem with the transmission, rendering it inoperable. I believe this falls under contract nonconformity, so I contacted the dealership, and they instructed me to get a repair estimate from a dealer near my home. After submitting the repair estimate (for a transmission replacement) to the dealership, I received
a response stating they wanted to cancel the contract. When I asked for the reason, they mentioned that while it is partly due to the repair costs, even if the transmission were fixed, there is a possibility of other issues arising. I can’t help but think that they shouldn’t sell such an unstable car from the start. The purchase price was 3 million yen, and the repair estimate is 1.9 million yen. I thought that both parties needed to agree to cancel the contract, but is it acceptable for the dealership to unilaterally insist on repairs? Furthermore, it seems that if the dealership cancels the contract, they do not intend to compensate for the car loan interest, transportation costs at the time of delivery, or the costs of using a rental car while the vehicle is currently broken down. They argue that since both parties are incurring expenses, they hope we won’t pursue that matter. Can I claim compensation for these costs? I believe it is only natural for the dealership that sold a car with a faulty transmission to fully compensate me. I think there should only be two options: either they repair it or they fully compensate me for the costs incurred, but what do you think?

Contract Nonconformity in Used Car Purchases and Its Solutions

The troubles faced by those who purchase used cars often stem from issues related to “contract nonconformity.” In particular, the situation where a transmission malfunctions shortly after purchase can be extremely perplexing. I have had similar experiences in the past, so I can empathize deeply with your feelings. This time, I will provide advice from a legal perspective regarding such cases.

What is Contract Nonconformity?

First, let’s review what contract nonconformity means. This refers to a situation where the quality or performance of a product based on a sales contract does not conform to the contract terms. For example, in the case of a used car, if the transmission, which should operate normally, is malfunctioning, this can clearly be considered contract nonconformity. Legally, the seller has “warranty liability.” This means that if there is a defect (flaw) in the sold item, the buyer has the right to request repairs, replacement, or cancellation of the contract. Therefore, in your case, the dealership should bear responsibility.

Regarding the Dealership’s Response

Now, regarding the dealership’s unilateral instruction that “repairs must be done,” there are several points to consider. First, it is legally problematic for the dealership to force repairs. In cases of contract nonconformity, the buyer has the right to choose between cancellation of the contract or repairs, so they cannot ignore the conditions you requested (repair or full compensation). The dealership must respect the customer’s choice. Next, it is also important to note that mutual agreement is necessary for contract cancellation. While it is true that both parties need to agree to cancel the contract, in cases of contract nonconformity, you can also unilaterally request cancellation. This is a right recognized by law.

Regarding Damages

Let’s also consider the other costs you are currently facing, such as car loan interest, transportation costs at the time of delivery, and rental car fees. The dealership’s intention not to compensate for these is quite unreasonable. Legally, when contract nonconformity occurs, the buyer has the right to claim damages from the seller. Therefore, you can indeed claim these costs. Of course, specific amounts and circumstances may vary, but as a general principle, the dealership’s responsibility can be questioned.

Lessons Learned from My Experience

I have also faced unexpected troubles when purchasing a used car in the past. At that time, I negotiated with the dealership and ultimately succeeded in getting a full refund. Negotiations can be challenging, but I felt it was important to understand my rights and handle the situation calmly.

What Are the Next Steps?

Now, let’s look at how to proceed specifically. 1. Document formal communications with the dealership: Verbal exchanges do not leave evidence. Make sure to communicate via email or written correspondence. 2. Seek legal advice: Consider consulting a lawyer or a consumer affairs center if necessary. Hearing from an expert can help you take clearer measures. 3. Claim damages: Organize what costs have arisen based on the purchase contract and repair estimates, and submit a claim to the dealership. 4. Maintain composure: It’s easy to become emotional when facing trouble, but calmly conveying the facts is key to negotiating favorably.

Conclusion

Purchasing a used car can be particularly anxiety-inducing for first-time buyers. However, by understanding the law and firmly asserting your rights, many troubles can be avoided. The issue you are facing should also be resolvable by exercising your legitimate rights. Finally, I hope your communications with the dealership proceed smoothly. No matter the problem, there is always a way to address it appropriately. I hope your experience can also help others.