Table of Contents

1. Why warranty matters more than it seems

2. The statutory warranty: what it is and who is bound by it

3. Duration of the statutory warranty on second-hand cars

4. What is and is not covered by the statutory warranty

5. The commercial warranty: what it is and how it works

6. Key differences between statutory and commercial warranties

7. How to use the warranty as a selling point

8. How to handle a warranty claim

9. Frequently Asked Questions

Why warranty matters more than it seems

Warranty in the sale of second-hand cars is not just a legal obligation to be met: it is one of the factors that most influences the customer's buying decision. According to data from the IV VO Observatory of FACONAUTO, the warranty is the second reason for purchase for private customers, only behind the vehicle price.

For a professional dealership, understanding well what the law obliges and what you can offer on top of that obligation has two practical consequences. The first is legal: failure to comply with the statutory warranty exposes the dealership to claims, returns, and penalties. The second is commercial: offering it well and communicating it correctly can be a differentiating point against the competition.

To understand the difference between statutory warranty and hidden defects, you can consult the article on hidden defects in second-hand cars.

The statutory warranty: what it is and who is bound by it

The statutory warranty is the minimum protection that the law obliges any professional vehicle seller to offer. It is regulated by Royal Legislative Decree 1/2007 (General Law for the Defence of Consumers) and by Law 3/2014 which amends it, and more recently by Royal Decree-Law 7/2021 which transposes the European Warranty Directive.

It applies when the seller is a professional (dealership, used car dealer, company) and the buyer is a consumer (an individual purchasing for private use, not for commercial activity). If the buyer is a company or sole trader purchasing for their activity, the relationship is B2B and consumer regulations do not apply: the contract terms govern.

It does not apply in private sales. If an individual sells their car to another individual, there is no legal obligation for a warranty. This difference is relevant for a dealership that buys from individuals (receives no warranty) and sells to consumers (is obliged to provide one).

Duration of the statutory warranty on second-hand cars

Since the transposition of the European Warranty Directive (January 2022), the general term of the statutory warranty for second-hand products is two years from the delivery of the vehicle.

However, the law allows for that period to be reduced to one year for second-hand goods by express agreement between the parties. For that reduction to be valid, it must meet three conditions: it must be expressly agreed (a generic clause is not enough), it must be in writing in the sales contract, and the buyer must sign it aware that they are reducing their warranty term.

In industry practice, most dealerships apply the one-year warranty by express agreement. This is perfectly legal, but it must be correctly reflected in the contract. A poorly drafted or missing clause can leave the dealership exposed to the default two-year warranty.

To see how to correctly draft the warranty clause in the sales contract, you can review the guide on essential contracts in professional car sales.

What is and is not covered by the statutory warranty

The statutory warranty covers lack of conformity: problems that existed in the vehicle at the time of delivery even if they were not visible at that moment. The dealership is responsible for those defects during the warranty term.

What is covered:

Pre-existing mechanical defects that were not disclosed to the buyer. Failures in vehicle systems (engine, transmission, steering, brakes) that existed prior to the sale. Any issues that prevent the vehicle from working as described in the contract or as could reasonably be expected from it.

During the first year from delivery, it is presumed that the defect existed at the time of sale (the buyer does not have to prove it). From the second year onwards (if the two-year warranty applies), the buyer must prove that the defect was pre-existing.

What is not covered:

Normal wear and tear from vehicle use (brakes, clutch, tyres, shock absorbers). Damage caused by improper or accidental use. Defects that the buyer was aware of at the time of sale and which are listed in the contract. Problems caused by lack of maintenance after purchase.

The buyer's options when there is a covered defect:

In the first instance, they can demand the repair or replacement of the affected parts at no extra cost. If repair is not possible, is disproportionate or is not carried out within a reasonable timeframe, they can ask for a price reduction or contract termination (refund of money). To understand how to handle a request for a vehicle return, you can review the article on what to do if the customer wants to return the car.

The commercial warranty: what it is and how it works

The commercial warranty is any warranty commitment offered by the seller above the statutory warranty. It is not mandatory: it is an added value that the dealership decides whether to offer or not.

It can take different forms. An extension of the term (two or three years warranty when the statutory one is one year). Broader coverage (including wear and tear parts that the statutory one does not cover). An additional service (roadside assistance, replacement vehicle during repair). A combination of all of the above.

Commercial warranties can be managed internally by the dealership (assuming the risk of repairs) or outsourced to a company specialised in vehicle warranties, acting as an insurer. In this second case, the dealership contracts the warranty product for the customer and receives a commission or margin on each sale.

Important difference: the commercial warranty cannot be less than the statutory warranty. That is to say, if the contract includes a commercial warranty, it cannot exclude what is already covered by the statutory warranty. The commercial warranty adds, it does not subtract.

Key differences between statutory and commercial warranties

How to use the warranty as a selling point

The warranty is the second key purchasing decision factor after the price. Communicating it well in the sales process can make the difference between closing or not closing a deal.

In the advert. Explicitly stating that the vehicle is sold with a warranty (and for how long) is a visible differentiator. An advert saying "12 months warranty included" conveys more trust than one that mentions nothing, even though both include the statutory warranty.

During the visit. When the buyer is comparing your car and a competitor's, the warranty is a concrete argument you can use: "With us you get a one-year warranty and if anything happens in that time, we handle it, at no extra cost."

Using the commercial warranty as an extra income stream. Offering an extended paid warranty to the customer is an additional revenue stream that many dealerships underutilise. If the customer can extend the warranty from one year to two or three years for a reasonable fee (between 200 and 500 euros depending on the vehicle), a portion of customers will choose to do so. To see how this extra income fits into the overall margin of each deal, you can review the guide on how to improve profit margins in a dealership.

How to handle a warranty claim

When a customer submits a warranty claim, the correct process follows four steps.

First, verify if the claim is within the timeframe and coverage. Check the vehicle delivery date, the warranty period agreed in the contract, and whether the claimed defect falls under what the warranty covers (conformity defect) or outside (normal wear and tear, improper use).

Second, assess the defect. Send the vehicle to a trusted workshop to diagnose the issue. If the defect is covered, the workshop repairs it. If it is not covered, this must be communicated to the customer along with the justifying workshop report.

Third, respond within a reasonable timeframe. The law does not define an exact number of days, but case law and courts have considered a period of 15 to 30 days reasonable to manage the repair. Longer periods without communication to the customer might be considered non-compliance.

Fourth, document everything. The workshop report, the communication with the customer, and the outcome of the action must remain in the vehicle's records. In the event of a subsequent claim (consumer complaint, lawsuit), this documentation is proof that you acted correctly.

To understand what happens when a customer directly requests a vehicle return, you can review the article on what to do if the customer wants to return the car.

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Dealcar automatically generates sales contracts with the warranty clause correctly drafted according to the agreed term (1 or 2 years), maintains each vehicle's file with its warranty documentation, and allows you to manage after-sales incidents from the same platform where you manage stock and invoicing.

If you want to see how it works, you can book a free demo at dealcar.io.

Frequently Asked Questions

Can I sell a second-hand car without a warranty?

No, not if you are a professional seller and the buyer is a consumer. The statutory warranty is mandatory and cannot be waived by the consumer: no contract clause can eliminate it. What you can do is reduce it from two years to one by express written agreement.

Does the statutory warranty apply if the buyer is a company?

No. Consumer warranty regulations only apply to contracts between a professional and a consumer (an individual purchasing for private use). For sales to companies or sole traders purchasing for their business activity, the relationship is B2B and the warranty is governed by what they agree in the contract.

Can I charge the customer for workshop costs if the repair is under warranty?

No. During the warranty period, all covered repairs (including labour, parts, and travel expenses if applicable) are borne by the seller. Charging the customer for a covered repair constitutes a breach of warranty.

What happens if the customer has not maintained the car properly and that caused the failure?

If the defect is caused by inadequate maintenance by the buyer (e.g. not having changed the oil), it is not covered by the statutory warranty. To reject a claim for this reason, you need the workshop report to support it. Without that report, it is very difficult to prove that the defect was not pre-existing.

Can the commercial warranty exclude what is covered by the statutory warranty?

No. The commercial warranty cannot limit or exclude the rights granted to the consumer by law. If the commercial warranty contract attempts to exclude coverages that the law obliges to provide, those clauses are null and void even if the buyer has signed them.