Avoid Unexpected Costs: UAE Used Car Tips

Surprise After Buying a Used Car: What Can You Do If Your Car Breaks Down Shortly After Purchase in the UAE?

For many, purchasing a used car in the United Arab Emirates is an attractive option, particularly when considering the quickly changing car market and the high prices of new vehicles. However, buying a used car comes with risks, especially if the vehicle breaks down within the first week. What happens if the car had a significant defect before the sale that the buyer was not informed about? Is legal action possible, and what legal protections exist for the buyer?

Legal Background for Faulty Products in the UAE

The Civil Code of the United Arab Emirates clearly regulates the legal relations between seller and buyer, especially when the item sold is defective. According to Article 543(1) of the Federal Law No. (5) of 1985 (Civil Transactions Law), all sold goods are assumed to be free from hidden defects unless the seller openly indicates them. Article 544(1) states that if the sold product has a hidden pre-existing defect, the buyer has the right to decide: return the product or keep it as is at the original price—but in the latter case, they cannot demand a price reduction.

This means that if the seller does not inform the buyer about the defect, particularly a significant defect like a serious engine malfunction, the buyer can ask for a refund or seek compensation.

The Role of Consumer Protection in Used Vehicles

The UAE Consumer Protection Law (Federal Law No. 15 of 2020), amended by Presidential Decree No. 5 of 2023, offers additional protection to buyers. According to Article 17, the seller, advertiser, or agent must not mislead anyone about the product. Cabinet Resolution No. 66 of 2023 Article 8 defines in detail what constitutes misleading advertising—including the product's origin, composition, condition, expiry date, warranty, and payment method.

This is especially crucial for used vehicles. According to Article 7, products that are used, refurbished, or defective must be clearly labeled as such on the product, in the store, and in the contract—in a way that does not create a misleading impression on the buyer.

Compensation Opportunities for Faulty Products

If the buyer can prove that the defect existed before the purchase and the seller did not disclose it, under Article 24(1) of the UAE Consumer Protection Law, they are entitled to claim compensation for material or personal damage caused by the defect. This provision applies not only to products but also to services, and any agreement that would exclude this is considered void.

Where Can Buyers Turn?

The UAE Ministry of Economy and local consumer protection authorities in each emirate accept complaints of this nature. According to Article 35 of the Cabinet Resolution No. 66 of 2023, any affected consumer can file a complaint if misled or received a defective product. Authorities will investigate the case and may impose fines if justified.

The financial penalty table attached to the decree (Addendum No. 2) specifies that a fine of up to 100,000 dirhams may be imposed on a seller who misleadingly sells a defective or refurbished product.

Buying a Used Car from a Private Seller

The situation becomes more complex when buying a used car from a private individual rather than a dealer. While the consumer protection law mainly applies to businesses, the civil code's principle of "flawless performance" also applies to contracts between private individuals.

If the buyer later discovers that the car's engine had a serious defect at the time of purchase, which was not disclosed, they can file a civil lawsuit against the seller, seeking compensation or nullification of the sale. The burden of proof is on the buyer—such as through service records, an independent mechanic's expert opinion, the car ad's text, or message exchanges with the seller can support the claim that the seller did not disclose the defect.

What About Warranty?

If the seller offered any warranty on the car—verbally or in writing—the buyer may be entitled to warranty repairs or other remedies. In such cases, actions can be based on the warranty terms. However, it is important to note that even without a warranty, the seller may still be liable for hidden defects.

Advice for Future Buyers

Before purchasing a used car, it is advisable to have it inspected by an independent mechanic. Many fall into the trap of relying solely on the seller's statements. When buying from a dealer, check if there is a warranty on the car and under what conditions. For private purchases, ask for a written contract that includes the car's condition, mileage, and any known defects. This makes legal enforcement easier later on.

Summary

The legal framework in the UAE—both the civil code and the consumer protection law—clearly protects buyers from deception. If a used car breaks down shortly after purchase, and it is revealed that the defect existed at the time of sale, the buyer has the right to file a complaint and take legal action against the seller.

It is not worth accepting that "that's the risk of buying a used car." UAE regulations provide opportunities for justice—especially if the buyer was deliberately misled. Knowledgeable purchasing and awareness of subsequent legal options can help ensure that car buying is a joy, not a frustration.

(Based on Article 543(1) of the Federal Law No. (5) of 1985 as the source.)