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Advice

First published: 24th July 2015

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Advice

How does the Misrepresentation Act protect car buyers?

If a seller tells you something that isn't true and you buy a car for that reason, this act may provide you with some back-up

First published: 24th July 2015
The Misrepresentation Act is perhaps more appropriate when it comes to the sale of used cars, but it covers you against a seller making a false or fraudulent claim that encourages you to buy a car.

What redress is open to you depends on what sort of misrepresentation you have experienced. If the misrepresentation was ‘fraudulent’ (ie the seller knew what they were saying was untrue), then you can cancel the deal or claim damages; if it was ‘negligent’ (ie the seller says something carelessly), you can claim some financial loss; and, if the misrepresentation was ‘innocent’ (ie the seller was not at fault and reasonably thought what they were saying was true), you can cancel the deal.
Related topics: Buying a car - your rights