Buying a used car in Estonia

What is the difference between buying from a trader and from a private person?

A consumer sale is a sale in which a seller acting in the course of their economic or professional activity sells a movable to a consumer (VÕS § 208 lg 4) [1]. In that case rules more favourable to the buyer apply:

• Two years of liability. The seller is liable for a lack of conformity that becomes evident within two years of the goods being handed over to the buyer (VÕS § 218 lg 2) [2].
• First year – presumption in the buyer's favour. A lack of conformity that becomes evident within one year is presumed to have existed at handover, unless this is incompatible with the nature of the goods or the defect (VÕS § 218 lg 2²) [2].
• Liability cannot be excluded in advance. An agreement to the buyer's detriment made before the defect was notified is void (VÕS § 237 lg 1) [8]. Exception: the parties may deviate from the requirements of VÕS § 217¹ lg 3 (for example, the quality usual for goods of that kind) if, when the contract was concluded, you were specifically informed that a particular characteristic of the car deviates from them and you expressly and separately agreed to this (VÕS § 237 lg 3) [8].

If the seller is a private person, these special rules do not apply. The seller is then liable for a lack of conformity that exists when the risk passes to the buyer (VÕS § 218 lg 1) [2], and the risk passes on handover of the goods (VÕS § 214 lg 2) [4]. The seller is not liable for a defect the buyer knew or ought to have known of when the contract was concluded (VÕS § 218 lg 4) [2]. An agreement excluding liability is possible (VÕS § 106 lg 1) [5], but it is void in the case of an intentional breach (VÕS § 106 lg 2) [5].

What counts as a defect in a used car?

The car must conform to the contract, in particular as to quantity, quality, type and description (VÕS § 217 lg 1) [9]. It is defective, among other things, if it lacks the agreed characteristics or, where nothing was agreed, is not fit for the purpose for which goods of that kind are usually used (VÕS § 217 lg 2 p 1 and 2) [9], or if a third party has a claim or other right concerning the car that it may assert (VÕS § 217 lg 2 p 4) [9]. When you buy from a trader, public statements made by the seller, in particular in advertising, are also taken into account (VÕS § 217¹ lg 3 p 2) [10].

According to the Supreme Court (Riigikohus), used goods are not judged by the characteristics of similar new goods unless the seller's advertising gave the impression that they were new; used goods conform to the contract if they show the wear or ageing usual for their age (RK 2-21-1758/64) [11]. The words „heas korras, sõidab hästi“ (in good condition, drives well) do not mean that the car was advertised as new (RK 2-21-1758/64) [11].

What is a hidden defect and when must I notify it?

Hidden defects are non-conformities that the buyer could not discover with the care expected of them when generally inspecting the goods from the outside; if a specialist pointed to the defect, it can be concluded that the defect is hidden (RK 2-14-37663/54) [12].

The buyer must notify the seller of a defect within a reasonable time after becoming aware or having to become aware of it; in a consumer sale, within two months of becoming aware of it (VÕS § 220 lg 1) [3]. A buyer who does not notify in time cannot rely on the defect; if the delay is reasonably excusable, the buyer may still reduce the price or claim damages, except for lost profit (VÕS § 220 lg 3) [3]. The buyer may also rely on the defect despite late notice if the seller knew or ought to have known of the defect and did not disclose it to the buyer (VÕS § 221 lg 1 p 2) [6].

When can I give the car back and get my money back?

1. Repair or replacement first. The buyer may demand that the car be repaired or replaced, if this is possible and does not cause the seller disproportionate costs (VÕS § 222 lg 1) [13]. The costs, in particular transport, labour and material costs, are borne by the seller (VÕS § 222 lg 4) [13].
2. Withdrawal. The buyer may withdraw from the sale contract, among other cases, if the seller has not completed the repair, has refused it, or the defect is so serious that it justifies immediate withdrawal (VÕS § 223 lg 1) [14]. The lack of conformity must be material; in a consumer sale this is presumed (VÕS § 223 lg 5) [14]. When buying from a private person, you may also withdraw in the case of a fundamental breach of contract (VÕS § 223 lg 4; VÕS § 116 lg 1) [14] [15], for example if the obligation was breached intentionally (VÕS § 116 lg 2 p 3) [15]. A consumer returns the car at the seller's expense (VÕS § 223 lg 7) [14].
3. Price reduction. In the same cases the buyer may reduce the price (VÕS § 224 lg 1) [16].
4. Fraud. If the seller intentionally misled you in order to induce you to buy, you may annul the transaction under the General Part of the Civil Code Act (tsiviilseadustiku üldosa seadus, TsÜS) (TsÜS § 94 lg 1 and 3) [17]. Failing to disclose circumstances that should have been disclosed in good faith is equated with stating false circumstances (TsÜS § 94 lg 2) [17]. The transaction may be annulled within six months of learning of the fraud (TsÜS § 99 lg 1 p 2) [18], but not once three years have passed since it was made (TsÜS § 99 lg 2) [18], by a declaration to the other party (TsÜS § 98 lg 1) [19].

How does ownership pass and how is the car registered?

Ownership passes when the seller hands over possession of the car and the parties have agreed that ownership passes, under the Law of Property Act (asjaõigusseadus, AÕS) (AÕS § 92 lg 1) [20]. Goods that were stolen, lost or otherwise left the owner's possession against their will cannot be acquired in good faith, except at a public auction (AÕS § 95 lg 3) [21].

To change the registration data, an application must be submitted to the Transport Administration (Transpordiamet) within five working days of the change, under the Traffic Act (liiklusseadus, LS) (LS § 77 lg 3) [7]; on a change of owner, documents proving the lawful acquisition of the vehicle are attached (Mootorsõiduki ja selle haagise registreerimise tingimused ja kord § 7 lg 2 p 2) [22]. The seller and the buyer may submit an application signed by both, confirming that a contract of transfer exists and possession has been handed over (Mootorsõiduki ja selle haagise registreerimise tingimused ja kord § 7 lg 5) [22]. For a car subject to a restriction on disposal, the written consent of whoever imposed the restriction is required (LS § 77 lg 9) [7].

What the law says

• „Tarbijalemüügi puhul vastutab müüja asja lepingutingimustele mittevastavuse eest, mis ilmneb kahe aasta jooksul alates asja ostjale üleandmisest.“ [2] (translation: in a consumer sale, the seller is liable for a lack of conformity that becomes evident within two years of the goods being handed over to the buyer; VÕS § 218 lg 2) – applies when buying from a trader.
• „Müüja ei vastuta asja lepingutingimustele mittevastavuse eest, kui ostja lepingu sõlmimisel asja lepingutingimustele mittevastavust teadis või pidi teadma.“ [2] (translation: the seller is not liable for a lack of conformity the buyer knew or ought to have known of when concluding the contract; VÕS § 218 lg 4) – this does not apply to a consumer sale.
• „Müüja ei või tugineda kokkuleppele, millega välistatakse või piiratakse ostja õigusi seoses asja lepingutingimustele mittevastavusega, kui müüja teadis või pidi teadma, et asi lepingutingimustele ei vasta ja ta sellest ostjale ei teatanud.“ [6] (translation: the seller may not rely on an agreement excluding or limiting the buyer's rights if the seller knew or ought to have known of the lack of conformity and did not tell the buyer; VÕS § 221 lg 2).

What to do

1. Before buying, ask whether the car is subject to a restriction on disposal or has been declared wanted: changing the registration data of a vehicle declared wanted is prohibited (Mootorsõiduki ja selle haagise registreerimise tingimused ja kord § 7 lg 6) [22].
2. Agree on the car's characteristics and write them into the contract – the absence of an agreed characteristic is also a defect (VÕS § 217 lg 2 p 1) [9]. When buying from a trader, keep the advertisement (VÕS § 217¹ lg 3 p 2) [10].
3. After handover, apply for the change of registration data within five working days (LS § 77 lg 3) [7]. The seller may notify the Transport Administration of the transfer, attaching a document proving the transfer of ownership (Mootorsõiduki ja selle haagise registreerimise tingimused ja kord § 7 lg 8) [22].
4. If a defect appears, notify the seller – a trader within two months of becoming aware of it, a private person within a reasonable time (VÕS § 220 lg 1) [3] – and demand repair (VÕS § 222 lg 1) [13]. When buying from a private person, demand repair or replacement together with the notice of the defect or within a reasonable time after it, or you lose that right (VÕS § 222 lg 6 and 7) [13].
5. You can file a written complaint with a trader, stating your name and contact details, the dates, the defect and your claim, under the Consumer Protection Act (tarbijakaitseseadus, TKS) (TKS § 24 lg 3) [23]. The trader must reply to a written complaint within 15 days of receiving it (TKS § 24 lg 5) [23]. If the trader refuses your claim or you do not agree with the solution offered, you can apply to the Consumer Disputes Committee (tarbijavaidluste komisjon) (TKS § 46 lg 1) [24], where resolving the dispute is free of charge for the parties (TKS § 45 lg 4) [25].

Frequently asked questions

Does the two-year liability apply to a car bought from a private person?

No. The two-year period applies to a consumer sale (VÕS § 218 lg 2) [2], where the seller acts in the course of their economic or professional activity (VÕS § 208 lg 4) [1]. A private seller is liable for a defect that existed when the car was handed over (VÕS § 218 lg 1; VÕS § 214 lg 2) [2] [4].

The seller wrote in the contract that they are not liable for defects. Do I have no rights?

When buying from a trader, such an agreement is void (VÕS § 237 lg 1) [8]. However, if the seller specifically told you when the contract was concluded that a particular characteristic of the car deviates from the requirements of VÕS § 217¹ lg 3 and you expressly and separately agreed to this, that deviation is allowed (VÕS § 237 lg 3) [8]. When buying from a private person, the seller cannot rely on it if they knew or ought to have known of the defect and did not disclose it (VÕS § 221 lg 2) [6], and it is void in the case of an intentional breach (VÕS § 106 lg 2) [5].

Is wear typical of an old car a defect?

As a rule, no: used goods conform to the contract if they show the wear or ageing usual for their age (RK 2-21-1758/64) [11].

Can I return a car bought online from a trader?

Yes, if the contract was concluded by means of distance communication: it was concluded in a sales system used for concluding such contracts, you and the trader were not present together at the same place when concluding it, and the declarations of intent were sent exclusively by means of communication (VÕS § 52 lg 1 p 1, 3 and 4) [26]. You can then withdraw without giving reasons within 14 days (VÕS § 56 lg 1) [27], counted from the day you physically took possession of the car (VÕS § 56 lg 1¹) [27].

What happens if the buyer does not register the car in their name?

If the seller has notified the transfer and the acquirer has not applied for the change within the prescribed time, the Transport Administration temporarily deletes the car from the register (LS § 77 lg 8 p 1) [7]. A temporarily deleted vehicle may not be used in traffic (LS § 77 lg 8⁴) [7].