Under the statutory warranty in §§ 922 et seq. of the Austrian Civil Code (ABGB), the seller is liable for defects that already existed at handover – even if they only become visible later. The warranty period is generally 2 years from handover. If a defect appears within the first year (when buying from a dealer) or within six months (when buying privately), it is presumed to have existed at handover (reversal of the burden of proof). You can first ask for repair or replacement and, as a second step, for a price reduction or rescission of the contract. If you buy from a dealer as a consumer, an exclusion of the statutory warranty is not permitted. In a private sale it is permitted – but never for defects the seller fraudulently concealed.
The car runs, but the trouble is only just beginning
The used car was a good deal and the test drive went smoothly. Then, a few weeks later, the gearbox starts playing up, the engine smokes, or it turns out that the car had been damaged before and nobody told you. Suddenly you are asking yourself: do I have to bear the cost myself, or can I hold the seller responsible?
Austrian law often gives you more options here than many buyers expect. The statutory warranty makes the seller liable for defects that already existed at handover – even if they only become visible later. This page explains, calmly and clearly, what rights you have, what time limits apply and how buying from a dealer differs from buying privately. At Teamanwälte in Vienna, we review your case and pursue your claims – out of court and, if necessary, in court.
What is the statutory warranty – and what are you entitled to?
The statutory warranty is the seller’s statutory liability if, at handover, the item lacks the characteristics that were agreed or that can normally be expected (§§ 922 et seq. ABGB). What matters is its condition at the time of handover. A defect that was already present then – even a hidden one – triggers the statutory warranty, even if it only shows itself weeks later. Normal wear and tear on a used vehicle, on the other hand, does not count as a defect.
A defect can be technical (a faulty clutch, engine damage, rust on load-bearing parts). It can also be the lack of a characteristic that was expressly promised – for example incorrectly stated mileage, accident damage that was not disclosed, or a missing roadworthiness certificate (the periodic inspection under § 57a).
Which time limits apply?
Since the EU warranty directive was implemented (in force since 1 January 2022), the time limits have been clearer and more favourable to buyers:
- Warranty period – generally 2 years from handover for movable goods, which includes vehicles. The defect must come to light within this period.
- Presumption period – 1 year when buying from a dealer (since 1 January 2022, previously 6 months; still 6 months when buying privately, § 924 ABGB): if a defect appears within this period after handover, it is presumed to have existed at handover. The seller must then prove otherwise. After that, the burden of proof shifts back to you – you have to prove that the defect already existed at handover.
- Time limit for court action: after the warranty period ends, you still have three months to assert your rights in court (§ 933 ABGB).
The levels of remedy: what you can ask for
The law sets out a hierarchy of warranty remedies (§ 932 ABGB). You cannot simply choose the one you like best – each level builds on the one before.
Level 1 – primary remedies: repair or replacement
First of all, you are entitled to have the defect remedied free of charge and within a reasonable time – by repair or replacement. With a specific used car, replacement is usually not possible in practice, so repair is the main remedy. The seller bears the cost.
Level 2 – secondary remedies: price reduction or rescission
Only if repair or replacement is impossible, disproportionate or refused, or is not carried out within a reasonable time – or would cause you considerable inconvenience – do the secondary remedies come into play:
- Price reduction: the purchase price is reduced by the loss in value caused by the defect; you keep the vehicle.
- Rescission (termination of the contract): the purchase is reversed – you return the car and get the purchase price back. Rescission is only available for defects that are not minor; if a defect is merely minor, you are limited to a price reduction.
Dealer or private sale – the crucial difference
Whether you bought the car from a commercial dealer or from a private individual makes a considerable difference to your legal position.
Buying from a dealer (consumer contract)
If you buy from a business as a consumer, the Consumer Protection Act (KSchG) also applies. It gives you the most important protection: the statutory warranty cannot be excluded entirely for consumers. A clause to that effect in the purchase contract, or a note saying ‘sold as seen, without any warranty’, has no effect against consumers.
Buying privately
The KSchG does not apply when you buy from a private individual. Here, the statutory warranty can be validly excluded in the purchase contract – for example by the usual clause ‘sold as seen, no warranty’. If you buy privately, you should be aware of this risk.
But: even an agreed exclusion of the statutory warranty has limits. It does not apply to defects that the seller fraudulently concealed, or to characteristics that were expressly promised. You also keep the right to challenge the contract on grounds of mistake and the right to rely on laesio enormis (see below).
Statutory warranty or contractual guarantee – not the same thing
The two terms are often confused, but in law they are fundamentally different.
| Statutory warranty | Contractual guarantee |
|---|---|
| Required by law (ABGB/KSchG) | Voluntary contractual promise |
| Liability for defects at handover | Scope depends on the guarantee terms |
| Always applies (unless validly excluded) | Only if expressly given |
| Owed by: the seller | Owed by: whoever gives the guarantee (e.g. the manufacturer) |
A contractual guarantee can give you additional rights, but it never replaces your statutory warranty. If the guarantor refuses, you still have your statutory warranty claim against the seller.
What to do about a hidden defect
In a private sale in particular, your strongest tool is often not the statutory warranty itself, but the claims that cannot be excluded:
- Fraudulently concealed defect: if the seller knew about a defect and deliberately kept quiet about it (such as accident damage that was covered up or mileage that had been tampered with), the exclusion of the statutory warranty does not apply. You also have a claim for damages.
- Challenging the contract for mistake: if you were misled about an essential characteristic, you can challenge the contract on grounds of mistake. In consumer contracts, this right cannot be excluded.
- Laesio enormis (gross disparity of more than half the value, § 934 ABGB): if the true value of the defective item is less than half the price you paid, you can have the contract set aside. This right cannot be validly waived in advance.
In practice, it is important to notify the seller of the defect promptly and in a way you can prove (ideally in writing). Document the defect (photos, a garage report) and do nothing that weakens your evidence – so do not have the car repaired on your own initiative until the claim has been clarified.
Statutory warranty disputes over car purchases in the media
Mag. Johannes Bügler is in demand in the media on statutory warranty disputes over car purchases – as the buyers’ lawyer and as an expert on television. A selection:
‘Lawyer Bügler comments on dispute with car manufacturer’
On an Alfa Romeo Tonale bought from a dealer, the ABS, ESC and power steering repeatedly fail after trips through the car wash. In the studio, Mag. Johannes Bügler, who is not involved in the case, assesses the legal position: what matters is what you are normally entitled to expect from a vehicle of this kind.
See the ORF appearance on our ‘In the media’ page →‘Tesla owner sues Tesla and receives €50,000’
After numerous defects and around 20 visits to the garage, a buyer brought a claim over his Tesla Model X before the Vienna Commercial Court. Despite the defence that the claim was time-barred, the court found in his favour: he is to get back around €50,000 (the judgment was not yet final at the time). We represented the buyer.
View original clipping (PDF) →‘Fuel consumption too high? Manufacturer pays car buyer a settlement’
A Viennese man complained of significantly higher fuel consumption and other defects in his Renault Mégane. Before the court-ordered emissions test took place, the parties reached an agreement: a settlement payment of more than a third of the purchase price (around €7,500). We represented the buyer.
View original clipping (PDF) →How we help you
Whether a defect already existed at handover, whether an exclusion is valid and which remedy is the right one often turn on details – the purchase contract, the wording of the advert, garage reports and the seller’s conduct. We are a Vienna law firm led by Mag. Johannes Bügler, and we review your case in full. We establish which time limit applies, whether an exclusion of the statutory warranty holds, and whether damages, a challenge for mistake or laesio enormis are also available alongside the statutory warranty. We draft the notice of defect to the seller, negotiate with them and pursue your claims in court if necessary – up to and including rescission of the contract.
Tell us about your situation. We will tell you honestly whether taking action is worthwhile and how – without pressure and without promising success, because in law nobody can.
Teamanwälte – Mag. Johannes Bügler · Baumgartenstraße 82, 1140 Vienna · Phone +43 1 419 13 18 · office@teamanwaelte.at
For an overview of the whole topic, see our page on Road accidents & damages. If your dispute is with a motor insurer, see Disputes with insurers.
Note: This article is for general information only and is not a substitute for individual legal advice. The time limits and amounts mentioned are for guidance only; the specific assessment – in particular of whether the period for used vehicles may be shortened – is made case by case. We give no guarantee of success.