Liability after sale of classic car - Legal Advice

Questioner

Liability after a classic car defect. I sold a very rare Lancia from 1963 in January 2014. This was my private property since 2007. In 2009 I had the engine overhauled by a specialized garage because of noise in the engine. Of course I have an invoice for this. Since then I have used the car annually with great pleasure for many oldtimer events in Europe. Between overhaul and sale I have driven about 15,000 km in 5 years without any significant problems. The buyer (who owns several classic cars) extensively test drove the car, inspected it and together we went through the folder with the most important (maintenance) history. All (possible) points of interest known to me were made known to the buyer. We both agreed that no guarantee could be given on such a fragile car of 50 years old and this was stated and signed in a purchase agreement. Last June the car broke down on the highway. Engine damage that the garage of the buyer estimates at 5000 Euro. I offer the buyer out of decency to have this repair carried out under my auspices with a maximum contribution of 2000 euros on his part. The buyer accepts this offer and promises in July to have the car made ready for transport as soon as possible at his garage after payment of the costs incurred there so far. Nothing more is heard after that. In mid-August I receive an intimidating phone call from the buyer's garage owner that he wants to overhaul the engine and that I have to pay for it. I do not agree to this and end the conversation. Then I again seek demonstrable contact with the buyer and explicitly request him to consult further. No reaction is forthcoming. Early September there is suddenly an indignant text message from the buyer concerning my attitude in this matter with the threat that I would hear more about it. Last week I received a letter from his lawyer in which I am held liable. Especially because I work as a Classic Car Valuer & Broker and therefore it concerns a consumer purchase with non-conformity of the delivered goods. Yesterday I received a notice from the lawyer to pay more than 18,000 euros within 8 days for (estimated) expenses plus all costs that are added later. I fear that the engine has been damaged by improper use/care. The engine has already been dismantled and taken to an overhaul company. It is impossible for me to determine the cause and extent of the damage. The garage owner now wants to make the entire engine new, plus make various improvements to the car, plus have me pay for all previous repairs and maintenance. Can all this just happen? What strategy should I adopt?

Lawyer

The question in this case is whether there is non-conformity of the car for which you are liable. I believe that this is not the case. The car is clearly no longer new. The buyer could therefore expect that the car would require more than average maintenance. Furthermore, no guarantee was given. You cannot be blamed for the fact that the engine broke down. Firstly, you have already reached a settlement to partially compensate for the engine damage as a goodwill gesture. In principle, this settlement cannot be reversed. Secondly, it has not been demonstrated what caused the engine to become defective. It is up to the other party to demonstrate that it concerns a defect that should not have been present and that the engine already had this defect at the time of purchase. I am therefore of the opinion that you do not have to reimburse the costs now claimed, otherwise the cost compensation that you have already promised. Such non-conformity disputes are legally quite complex. I therefore advise you to have a lawyer assist you in this. I am happy to do so.

Lawyer

When buying a classic car, it is of the utmost importance for the buyer to have a purchase inspection carried out. This has apparently been omitted here. No guarantee has been agreed either. Since the buyer (apparently) cannot demonstrate that the problem was already present when the car was purchased, the buyer must in principle bear the damage himself. This is only different if you have concealed defects, but the buyer must then demonstrate this. In principle, it makes no difference whether you sold the car as a company or as a private individual.

Lawyer

Don't be intimidated by a lawyer. I share the opinion of my colleagues that based on your story, the buyer has no reason to ask you for reimbursement of costs. I do advise you to write a good letter yourself or have it written by a lawyer or attorney (and that doesn't have to be so expensive) to counter the seller's position well. Sometimes it helps if a lawyer or attorney does that because they then realize that you are legally well informed. If you want that, I am prepared to help you with that.