QLD Am I Obliged to Refund Money to Buyer from Gumtree?

[Victor01]

Hi,

I sold a car on Gumtree recently. I had got a roadworthy certificate done for it last month in Jan. The buyer rang me today saying he took the car for a roadworthy certificate and they discovered a long list of problems holding it back from getting passed which I was unaware of, particularly getting a roadworthy certificate myself just last month in Jan.

He asked me if I could refund his money or pay for the repairs which totalled $1480. He purchased the car for $1800. I told him the only thing I was aware of was that 1 of the rear passenger Windows was not working. I had the car advertised for $2000 but we agreed with $1800 due to the inconvenience of the window.

Am I legally obliged to refund his money under Australian Consumer Law or pay for the repairs? If I pay for the repairs, it means I'm only left with $350.

Please help

 

[Rob Legat - SBPL]

It sounds like either the place that gave you the first safety certificate is dodgy, or the buyer's is. I'd also assume that the buyer had the opportunity to get the car checked out by a mechanic prior to purchasing it. They certainly had the opportunity to inspect it and haggle down the price.

My guess is that these issues either aren't road worthiness issues, or the buyer's mechanic is being overly picky. Either way, I'd be telling the buyer that you provided them with a safety certificate for the car, that you're relying on that, and that you had no knowledge of any other defects with the vehicle.

 

[Victor01]

Thanks Rob, you have really put my mind at ease.

 

[Slade]

Hi,

I sold a car on Gumtree recently. I had got a roadworthy certificate done for it last month in Jan. The buyer rang me today saying he took the car for a roadworthy certificate and they discovered a long list of problems holding it back from getting passed which I was unaware of, particularly getting a roadworthy certificate myself just last month in Jan.

He asked me if I could refund his money or pay for the repairs which totalled $1480. He purchased the car for $1800. I told him the only thing I was aware of was that 1 of the rear passenger Windows was not working. I had the car advertised for $2000 but we agreed with $1800 due to the inconvenience of the window.

Am I legally obliged to refund his money under Australian Consumer Law or pay for the repairs? If I pay for the repairs, it means I'm only left with $350.

Please help

Under Australian Law you are not obliged to refund any money and as you supplied a roadworthy certificate and also informed the buyer of this problem it is he that has to wear to paying of any repairs and if that person has a problem with the original roadworthy certificate it should contact the business that supplied it to you and let them sort it out.

 

[Tim W]

Am I legally obliged to refund his money under Australian Consumer Law or pay for the repairs? If I pay for the repairs, it means I'm only left with $350.

Please help

Going only by what you have said here,
missing facts missing, and with the undisclosed facts, ifs, buts, and maybes not allowed for,
I suggest that a seller in your shoes, acting in good faith, is less likely to be liable.

First, the private sale of a car is not a transaction to which the Australian Consumer Law applies.
Further, the private sale of a car is also almost never a transaction that falls within the scope
of the law that applies to, say, used car dealers.

Second, you, as the seller, are entitled to rely on the competence and integrity of the mechanic who signed the certificate.
In simple words - you, as the seller, can take the mechanic's word for it that the car is roadworthy.
Bear in mind also, that a vehicle can be roadworthy even if many of its parts are used/ worn
and close to needing replacement, but still "good enough" when inspected.

Third, as a matter of contract law generally, a seller does have an obligation to deal fairly and honestly with a buyer.

Assuming that you did that, then it's up to the buyer to "start something" in the nature of a dispute about them being deceived. Assuming fairness and honesty on your part, you have no obligations to him in the way, say, a motor dealer might.

In order to succeed in such an action, a buyer will typically need to show
that the seller knew, or, even as a layman seller* reasonably should have known,
that there were defects the car beyond what was disclosed,
that may have been relevant to the buyers's decision
about whether or not to buy the car.

That can be pretty hard for him to do, when a seller provides a Roadworthy, and also agrees to a discount
because of defects that the seller actually disclosed to him.

Fourth - buyer beware.
While on the one hand, a seller doesn't get to use "buyer beware" as a way to pull a trick on a buyer,
on the other, the buyer has the opportunity to examine the car (or have it examined) the car, before deciding to buy it.

Where sellers often come unstuck here is when it turns out they were lying by omission - that is, not saying something that they reasonably should have, if they were being fair and honest.



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* that is, not a mechanic or other relevant technical person