Purchase contract for a car: How to protect yourself when buying a car
Although a purchase contract for a car is not required by law, it is highly recommended: it protects both parties and serves as evidence in the event of a dispute. If you draw up the contract carefully, clearly state the warranted characteristics, and know your defect rights, you’re on the safe side of the law – whether it’s a new car, a second-hand one or an imported one.
When buying a car privately, you can protect yourself against defects through three measures: a written purchase contract with warranted characteristics, a careful vehicle inspection before you buy, and immediate written notification of any defects after you buy. If the warranty is not excluded, you are legally entitled to a reduction in price or cancellation (Art. 197 et seq. of the Swiss Code of Obligations (SCO)).
What does the purchase contract for a car have to include?
The purchase contract covers both parties . Here is the most important information that such a contract should include:
- Personal details of buyer and seller: ask for ID and check it thoroughly.
- Exact vehicle details: these include the vehicle type, chassis number and the precise purchase price.
- Warranty and guarantee: clarify the liability for material defects and defects of title as well as any guarantee exclusions. The purchase contract for a private car often states that it will be sold without a guarantee.
- Extras: make a note of the handover of additional items such as summer and winter tires, navigation devices or roof racks.
- Warranted characteristics: the purchase contract may include assurances that there have been no accidents or that no major repairs have been carried out, such as replacement of the timing belt. These warranted characteristics apply even if the warranty has been completely excluded.
In addition to a waterproof purchase contract, there are more things you should bear in mind when buying a car privately. Above all, a thorough inspection of the vehicle and a test drive are crucial to ensure that you do not experience any nasty surprises. If possible, you should bring a specialist with you to the viewing who can identify technical defects immediately. Summary: although a good purchase contract gives you legal protection, careful inspection of the car remains essential.
What’s the difference between a guarantee and a warranty when buying a car?
When buying or selling a car privately, guarantees and warranties are two fundamentally different concepts with different legal bases and different consequences for buyers:
- The warranty is governed by law (Art. 197 et seq. SCO) and applies automatically to every purchase. However, it can be contractually excluded – except for fraudulently concealed defects (Art. 199 SCO).
- The guarantee is voluntary and only arises if it is expressly agreed. Its scope is based solely on the agreement reached.
Is a receipt for buying a used car enough?
It's advisable to obtain a written purchase contract so that you have proof. Record the warranted characteristics in it and check the contract point by point before signing it. The contract should mention the key characteristics of the vehicle, such as make, model, chassis number, etc.
Does a purchase contract have to be issued?
There's no special form prescribed for buying a used car. It can either be concluded verbally or even implied. This means that you hand over cash, for example, to the seller in return for the car keys.
Other questions and answers
Does the legal obligation to mention accident damage to the vehicle apply, even if the vehicle is sold privately?
Yes – when buying a car, the seller is obligated to disclose damage due to accidents of their own accord. If it then transpires that the purchased car has suffered damage – with the exception of minor damage such as minor bodywork or paint damage or a scratched fender – and the seller has fraudulently concealed this, then they can be prosecuted. In this case, the buyer can ask for a price reduction or for the contract to be rescinded.
Can a private seller exclude the guarantee for a used car?
Yes. The guarantee is not governed by law; its scope is determined solely by agreement between the parties – a private seller can therefore exclude it. What applies in detail is set out in the contract and/or the GTC. The burden of proof for the existence of a guarantee case lies with the buyer.
Can the seller exclude a warranty?
Yes, a warranty in the purchase contract can be contractually excluded, limited, or extended. There is no particular form for excluding or limiting a material warranty, therefore an implicit or implied exclusion of defect rights is also possible. Note: this limitation is only possible within very narrow limits (e.g. period limited to one year for second-hand transactions). The most common limitation is that the seller is entitled to carry out rectification prior to cancellation.
Exceptions:
an agreement to exclude or limit the warranty is void if the seller has fraudulently concealed major defects from the buyer (Art. 199 SCO). The burden of proof in this instances lies with the buyer, but it is normally difficult to obtain proof. Generally held limits of liability or exclusion clauses have no impact on the seller's liability for specifically warranted characteristics.
Examples:
- Comprehensive exclusion of warranty rights: "The statutory warranty is excluded as far as legally possible."
- Inadequate wording: "Bought as seen (as driven)." With this formulation, the seller is not liable for the defects that were clear to the buyer but for the hidden defects.
- Implicit and implied disclaimer: in the case of an old vehicle that has many kilometers on the speedometer and was purchased cheaply, it can be assumed that the material warranty was tacitly waived, since with such a purchase you cannot expect that the purchased item is free of any defects.
The seller refuses to have the used car inspected by the TCS. If this is the case, should I give it a wide berth?
Exercise caution. It is generally advisable to have an independent check carried out before buying a used car. If the seller refuses this, you should insist on it or refrain from making the purchase, especially if the vehicle is offered without a guarantee, with a warranty exclusion and with no current motor vehicle inspection.
Who pays if I have the second-hand car inspected at a later date?
The costs of a re-inspection are borne by the buyer. The reason for this is the burden of proof: anyone claiming a defect must also prove it – and thus bears the cost of the re-inspection.
What do you need to bear in mind when buying a car privately?
Buying a car from a private individual can be an inexpensive alternative to a new one. But to make sure that you make a good deal and don’t experience any nasty surprises later on, there are a few important things to keep in mind. In addition to drawing up a purchase contract for the car, careful preparation is essential to uncover hidden defects and correctly assess the value of the vehicle.
Checklist for buying a car
Careful inspection of the vehicle and a clearly drafted contract are the key to a successful private car purchase. The checklist is divided into three phases.
Phase 1: Research
1. Research the market value: find out how much the car model you are looking for is worth and compare the price with similar offers on platforms such as Autoscout24 or Ricardo. This way you can be sure that you pay a fair price and that the car isn’t overpriced.
2. Check the previous owner: find out how many people have owned the vehicle. Advertisements often mention "first-hand", which means that the car has only had one previous keeper. As a rule, first-hand vehicles are considered to be particularly well-maintained and are therefore more sought-after.
Phase 2: Viewing and test drive
3. Inspect the vehicle thoroughly: take a close look at the car – ideally with another person and in daylight so that you don’t miss out on any details. Pay special attention to rust spots, signs of wear and possible accident damage.
4. Check the service book and maintenance history: check the service book to determine the maintenance status of the vehicle. Make sure that the services were carried out regularly and by an official representative. This gives you peace of mind that the vehicle has been well maintained and that no major repairs are pending. It’s best to get old garage invoices handed over to you.
5. Verify odometer reading: check the vehicle’s odometer reading. An unusually low mileage in an older car may be an indication of tampering. Also check whether the odometer reading matches the data in the service book.
6. Check additional and optional extras: if the vehicle has special or additional equipment such as a navigation device, leather upholstery or parking sensors, you should check them to make sure that everything is working properly.
7. Carry out a test drive: a longer test drive is recommended to test the condition of the vehicle under real conditions.
Phase 3: Purchase and afterwards
8. Record the contractual conditions in writing: record all agreements in writing in the purchase contract to avoid any misunderstandings. Use a template for the purchase contract for a car that covers all the important data, such as the purchase price, any defects, and handover of the vehicle documents. The contract template for car purchases from AXA-ARAG is a great way to do this.
9. Report any defects immediately: if you discover a defect after the purchase, you must report it in writing by registered mail immediately upon discovery (Art. 201 SCO). Do not wait too long, otherwise your warranty claims may expire.
Here’s how a private car purchase works
In practice, the buying process usually works as follows:
1. Viewing
2. Test drive
3. Clarification of any open questions
4. Signing of the purchase contract
5. Handover of money or car keys and vehicle documents
Where is the best place to buy a car?
Whether you should buy a car privately or from a dealer depends on your needs and priorities: buying from a dealer offers more protection, while buying privately is often cheaper but riskier. The decisive factor is how much security you want and how much you are willing to pay for it.
Buy privately or from a dealer?
| Criterion | Purchase privately | Purchase from a dealer |
| Price | Often cheaper as there is no dealer commission | Tends to be higher |
| Guarantee | As a rule, none | Usually a used goods warranty (generally at least 3 months for parts and labor; check industry recommendation) |
| Statutory warranty | Applies, but is often contractually excluded | Applies; usually not fully excluded, often supplemented by guarantee |
| Vehicle inspection | Buyer must organize this themselves | Usually carried out by the dealer |
| Effort on purchase | Higher: research, inspection, drafting of the contract | Lower: much is handled by the dealer |
| Security/risk | Increased risk of hidden defects | More security, but a higher price |
Discovery of defects - what should I do?
If the purchased vehicle has a significant defect or if a warranted characteristic in the car purchase contract ("accident-free", "no bodywork damage") proves to be incorrect, the statutory warranty provides for two options:
- Reduction: in the case of minor defects, you can demand a reduction in the purchase price. This reduction usually corresponds to the necessary repair costs.
- Cancellation: in the case of serious defects, you can insist on rescinding the car purchase .
A price reduction or cancellation can only be demanded if you inspected the purchased vehicle immediately and reported the defect right away. The complaint must contain a precise description of the defect and state that you are claiming the warranty. The seller must be informed of the complaint by registered mail as soon as the defect has been detected. If the immediate examination of the purchased vehicle and/or subsequent notification of any defects is not performed, the vehicle condition is thereby tacitly approved and you lose your right to claim.
Where "minor defects" end and where "serious defects" begin is ultimately at the discretion of the judge. Experience has shown that cancellation in borderline cases is difficult to enforce in court. Further answers to the most important questions about defects and guarantees:
When is the seller of a car liable for a defect?
The seller is liable as soon as there is a material defect, i.e. a discrepancy between the warranted (target) condition and the real (actual) condition of the vehicle (Art. 197 (1) SCO). Liability applies both to the absence of expressly warranted characteristics and to defects that significantly reduce the value or suitability of the vehicle. This is known as causal liability: the seller is liable even if they were unaware of the defect (Art. 197 (2) SCO). In this case, the buyer is entitled to cancellation (rescission), a reduction (reduced purchase price) and – in the event of fault – damages. There is no statutory right to rectification, but it can be agreed.
For how long can I claim for defects in my car?
In Switzerland, warranty claims for the purchase of a used car generally become time-barred two years after the vehicle was handed over (Art. 210 SCO). The period begins at the time of handover, not at the time of discovery of the defect. Important: if you discover a defect, you must lodge a complaint immediately upon discovery (Art. 201 OR), otherwise you will lose your claims within the limitation period.
What is a second-hand car guarantee?
You can take out a used-car guarantee in addition to the statutory warranty. A used-car guarantee guarantees the buyer the fault-free function of certain components in second-hand cars for a specific period.
As a result of this guarantee, the customer may claim rectification, but the conditions of the guarantee do not normally provide for a reduction in the purchase price or return of the vehicle.
For second-hand cars, a garage usually offers a minimum warranty of three months on vehicle parts and on the work carried out. In Switzerland, a 1-year guarantee insurance is often offered as a supplement to the minimum guarantee – for example in the versions Quality1. The exact content of such a guarantee varies from garage to garage. Normally, you will have to pay a deductible. You should closely study the terms and conditions of business.
Am I also protected without a guarantee?
Yes. Even without an agreed guarantee, you are protected as the buyer, because the legal warranty applies in Switzerland to every transaction – and thus also to the purchase of a used car. The seller must therefore give you a vehicle that is free of defects that reduce its value or make its use impossible. However, this warranty obligation can be contractually excluded. Age, mileage and price also apply: you can expect less from an old, inexpensive used car than from a second-hand car in mint condition. If, after the purchase, a defect becomes apparent despite careful inspection, you must act quickly and report the defect as soon as it is discovered – for reasons of proof, preferably by registered mail and listing the defect in as much detail as possible.
What legal options do I have as a buyer if I haven't agreed a warranty with the seller?
If nothing was agreed, the statutory warranty applies in Switzerland – in other words, in the event of a defect, you can demand reduction (decrease in the purchase price) or cancellation (rescinding the purchase). Important: this statutory warranty obligation may limit or exclude the seller entirely from the contract, and this is precisely what is often attempted. As the buyer, you should weigh up the risks carefully in this case – especially if there is no guarantee, no up-to-date MFK certificate and no independent inspection possible at the same time.
What is the right to rectification and when does it apply?
Rectification of the defect in purchase law refers to the removal of the defect by the car seller themselves or at their expense. The law does not provide car buyers with any entitlement to rectification. However, if both parties agree, rectification can be agreed.
Written by:
Anina Sabourdy
Anina Sabourdy is an Online Editor at AXA. She researches and writes on various insurance topics and loves the versatility of her job.
