Buying and selling used cars is probably one of the areas that generates the most tension between consumers and car dealers. The buyer usually expects a used car to have some wear and tear, but what cannot and should not be accepted is that the vehicle hides serious, pre-existing defects that compromise its safety, its operation or its real value.

When this happens, we enter the area of hidden defects («vicios ocultos») — a legal concept that continues to generate constant litigation and which, in recent years, has been interpreted in an increasingly consumer-friendly way.

The common pattern: Serious breakdowns weeks after purchase

In practice, many of these disputes over second-hand cars share a common pattern: the vehicle seems to be in good condition at the time of purchase, but a few weeks later problems start to appear, such as:

The buyer, who relied on the information provided by the professional seller (dealer or used-car business), suddenly finds themselves with a car that cannot be used normally and which, at times, is not even safe to drive. That is when the key question arises: can I rescind the contract and get my money back?

The legal answer: Yes, you can claim rescission of the contract

The answer, in many cases, is yes. Spanish law provides consumers with tools to react to this type of situation.

Presumption of pre-existing defect (Art. 121 TRLGDCU)

Consumer law, in particular art. 121 of the Spanish Consolidated Consumer Protection Act (TRLGDCU), establishes a presumption that the defect existed at the time of delivery if it appears in the first years after delivery, which shifts the burden of proof to the seller.

When the defects are serious, affect essential components of the vehicle or prevent its normal use, the natural legal consequence is the rescission of the contract under art. 1124 of the Spanish Civil Code, with mutual restitution: the buyer returns the car and the seller returns the purchase price.

This remedy is not only available — Spanish courts apply it consistently in cases where the vehicle shows structural damage, defective repairs, significant electronic failures or any condition which, had it been known, would have dissuaded the buyer from purchasing the vehicle.

The key to a successful claim: to prove that the defect existed before the sale and that the seller has not been able to repair it adequately and within a reasonable timeframe. From that point on, rescission of the contract becomes the most effective way to restore the balance between the parties.

Case law: Real cases won on grounds of hidden defects in vehicles

Spanish courts repeatedly rule in favour of the consumer when these circumstances are met. Below we review several key judgments:

1. When the repair is not carried out within a reasonable time

Judgment no. 143/2022 of the Provincial Court of Toledo, referring to a previous case from Cáceres, makes clear that the buyer does not have to put up with an endless wait at the workshop:

«Rescission of the contract is a subsidiary remedy for cases of lack of conformity (…). Only if the repair is not carried out within a reasonable period is rescission justified. (…) The breakdown was detected four months after the purchase (…) the vehicle was delivered in conditions that made it useless for its intended purpose (…), the regular transport of people. The claimant tried to have the seller remedy the defects, which she did not manage to obtain.»

2. Serious breakdowns (engine failure) that prevent use of the car

The Provincial Court of A Coruña, in judgment no. 120/2020, ruled in a similar sense and ordered the rescission of the contract because of an engine breakdown:

«Given the seriousness of the breakdown, caused by an internal failure such as the engine breakdown, which deprives the purchased vehicle of any usefulness (…) we are facing a serious and material breach of the seller’s obligation, which justifies the termination of the obligation (…) so mutual restitution must be ordered, with the seller returning the price paid by the buyer.»

3. Can you also claim insurance and loan interest?

Yes. The judgment no. 68/2021 of the Provincial Court of Valencia is a good example. In that case, the buyer of a vehicle that experienced numerous breakdowns from first use not only recovered the price of the car. The claim also succeeded in having the dealer return the cost of the compulsory third-party motor insurance and the interest associated with the loan used to acquire the vehicle.

In the same vein of asset protection, the judgment no. 175/2008 of the Provincial Court of Madrid imposed default interest on the seller:

«As regards the consequences of contract rescission, these must include the return of the price paid and interest accruing from the date of delivery.»

The judgment no. 108/2022 of the Provincial Court of Córdoba also upheld contract rescission because of defects pre-existing the sale.

Protect your investment and your rights as a consumer

Buying a vehicle should solve a mobility problem, not become a constant source of stress and workshop costs. If you are stuck with a seller because of hidden defects in your second-hand car in Spain, acting in time is essential to make full use of consumer protection law. If you need help, our lawyers can advise you on the next steps.