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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.

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’ (the seller knew what they were saying was untrue), you can cancel the deal or claim damages
  • If the misrepresentation was ‘negligent’ (the seller says something carelessly), you can claim some financial loss
  • If the misrepresentation was ‘innocent’ (the seller was not at fault and reasonably thought what they were saying was true), you can cancel the deal

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