What is the Fair Disclosure Law for Used Car Sales?
The law of due disclosure in the sale of used vehicles is actually Used Car Sales Law (זכאות למידע וגילוי נאות), תשס"ח-2008.
This is a relatively short law and it is very worthwhile to become familiar with all of its provisions, because being familiar with the provisions of the Fair Disclosure Law may save you a lot of time and nerves in filing a claim. Lawsuit against used car dealer.
These are the provisions of the law:
חוק מכירת רכב משומש (זכאות למידע וגילוי נאות), תשס"ח-2008
- In this law –
"מבטח" – כהגדרתו בחוק הפיקוח על שירותים פיננסיים (ביטוח), התשמ"א-1981;
"מידע" – מידע על תיקונים או טיפולים שבוצעו ברכב או כל מידע אחר שיש בו כדי להעיד על מצב הרכב ותקינותו, ולעניין מבטח – סכום תגמולי הביטוח ששולמו בעד הרכב ופירוט סוג הנזק או ירידת הערך שבשלם שולמו;
"עוסק ברכב" – עוסק כהגדרתו בחוק הגנת הצרכן, התשמ"א-1981, שעיסוקו מכירת רכב משומש;
"רכב משומש" – רכב שנרשם לפי פקודת התעבורה, וניתן עליו רישיון רכב.- (a) Anyone who has purchased a used vehicle is entitled to receive from any garage where the vehicle was repaired or serviced and from any insurer that insured the vehicle, any information they have about the vehicle.
(b) A garage and an insurer may charge a fee for the expenses involved in providing information as stated in subsection (a).- (a) A garage shall retain information about a vehicle that has been repaired or serviced for seven years from the date of the repair or service or from the date the information came into its possession.
(b) An insurer shall retain information about a vehicle it has insured for seven years from the date the information was created by it or from the date it came into its possession.- (a) A vehicle dealer shall not make a transaction regarding the sale of a used vehicle unless all of the following have been met:
(1) A written contract has been signed between him and the purchaser of the vehicle (in this section – the contract);
(2) The vehicle dealer has provided the vehicle purchaser, by the date of signing the contract and separately from the contract, with a signed form, which specifies the details as stated in subsection (b) (in this section – a disclosure form);
(3) The vehicle purchaser confirmed receipt of the disclosure form with his signature.
(b) A vehicle dealer shall accurately specify, in the disclosure form, the following details:
(1) His full name, his identity number and his full address; if the vehicle dealer is a corporation – also the type of corporation, its number and full address;
(2) The full name of the vehicle owner, his identity number and full address; if the owner is a corporation – also the type of corporation, its number and full address;
(3) The number of previous owners of the vehicle, and to the best of his knowledge – if the previous owner was a company in which the lessee is engaged – also the name and number of the company;
(4) Damage caused to the vehicle, as far as known to the vehicle dealer, up to the date of submission of the disclosure form;
(5) The number of kilometers traveled by the vehicle, as far as known to the vehicle dealer, from the date it was first registered until the date the disclosure form was submitted;
(6) The amount to be paid for the vehicle.
(c) In any transaction regarding the purchase of a used vehicle, in which the vehicle dealer is the seller, the vehicle dealer shall disclose to the vehicle purchaser that he sells or markets vehicles through a business.
(d) Without derogating from the provisions of subsections (a) and (b), for the purposes of those subsections, a person who sells a used vehicle, who is not registered as the owner on the vehicle license, shall be deemed to be dealing in vehicles, unless he proves otherwise; however, the provisions of this subsection shall not apply to a person who sells a used vehicle belonging to a member of his first-degree family.- העובר על הוראות סעיף 4, דינו – קנס פי שבעה מהקנס כאמור בסעיף 61(א)(2) לחוק העונשין, התשל"ז-1977.
- (a) On the date of the annual roadworthiness test of a used vehicle according to the Traffic Ordinance, the testing station will provide the Licensing Authority with the number of kilometers traveled by the vehicle being tested in the year preceding the test date.
(b) The licensing authority will indicate on the vehicle license the number of kilometers traveled by the vehicle being tested according to the last notification it received from the testing station as stated in subsection (a) and the date on which the said notification was delivered to it.- The Minister of Transport and Road Safety is responsible for the implementation of this law, and he may, with the approval of the Knesset's Economics Committee, enact regulations for its implementation, including regarding the methods of delivering information and the deadlines for its delivery according to Section 2.
- The provisions of this law do not derogate from the provisions of any other law.
- (a) The commencement of this law, with the exception of section 6, shall be four months from the date of its publication.
(ב) תחילתו של סעיף 6, ביום ט"ו בטבת התש"ע (1 בינואר 2010).
Who does the due disclosure law apply to?
The Fair Disclosure Act applies only to transactions between a used vehicle purchaser and a vehicle dealer. In other words, this law does not apply to a transaction carried out between a buyer and a For a private individual selling their vehicle.
It is important to note that the provisions of the Fair Disclosure Law also apply to insurance companies or garages that have handled the vehicle. According to the provisions of the Fair Disclosure Law, you are entitled to contact the insurance company or garage and request all the data they have about the vehicle.
This may be especially relevant if you later discover that the car dealer Deceived you. And sold it to you Car after an accident, or worse, Legally lost vehicle.
The mere fact that the provisions of the Fair Disclosure Law do not apply to private individuals does not mean that those individuals cannot be sued if they They sold you a defective vehicle.In these cases, it is possible to simply rely on other legal provisions, such as the duty of good faith and provisions dealing with deception by virtue of Contract Law Provisions.
The Fair Disclosure Law requires the car dealer to submit a fair disclosure form before making the transaction.
One of the most important provisions within the framework of the Due Disclosure Law is the obligation to provide the customer with Disclosure Form (Read Section 4 of the Fair Disclosure Law).
A disclosure form usually looks like this (or very similar):
By virtue of the provisions of the Due Disclosure Law The car dealer must specify This form contains essential details about the vehicle. The two most important issues that the dealer must detail are:
- Defects known to the vehicle dealer.
- The number of kilometers the vehicle actually traveled up to the date of its sale.
From the many inquiries that come to our office from clients who have purchased used vehicles from car dealers, it is clear that these are the two areas where deception occurs. Car dealers hide the defects in the vehicles and sometimes even reduce the number of kilometers the vehicle has traveled (Mileage fraud).
The buyer should know that if the car dealer did not provide him with a proper disclosure form or if the proper disclosure form includes incorrect/misleading information, according to court rulings, it is also possible to reach a situation where Canceling a used car transactionThese things are true even if the car dealer presented the customer with an inspection form for the vehicle at a vehicle inspection institute.
What should we do if the car dealer violated the provisions of the Fair Disclosure Law?
Sometimes the customer discovers that the dealer did not comply with the provisions of the Fair Disclosure Law only several years after the transaction with the dealer, when the seller is trying to sell the vehicle he bought from the dealer. At this stage, the new seller performs the necessary checks, including insurance claims history, and from the many inquiries that come to us, this is the stage at which the buyer usually discovers that the car dealer worked on it and sold him a vehicle after an accident or with other hidden defects.
Immediately after you discover that the car dealer has violated the provisions of the Due Disclosure Law, you must contact the dealer in writing (via WhatsApp) or by recorded conversation and inform him that he concealed the relevant defect from you. It is very important to contact him immediately and in a manner that allows for documentation of the contact so that you can present the data in court, if necessary.
The car dealer will try to reassure you and claim that he did not violate the Fair Disclosure Law at all, but he may still suggest that you come to the lot and make a trade-in. This does nothing to benefit the customer, but rather requires the customer to make another transaction with the dealer, which creates additional profit for the car dealer.
If you have tried to reach an agreement with the car dealer but have not been successful, you should contact a lawyer who deals with automotive matters. This is a niche field and there are not many lawyers in Israel who specialize in this field.
In the first step, you should send Warning letter before lawsuit To the car dealer. In this letter, you should state that you are canceling the deal and demanding financial compensation. The car dealer will usually ignore the letter or send a terse reply that they reject the demands.
In a situation where the merchant has not accepted your demands, you should submit them as soon as possible. Claim To the court. The longer you delay, the less it will help you.
In conclusion
חוק גילוי נאות הוא בפועל חוק מכירת רכב משומש (זכאות למידע וגילוי נאות), תשס"ח-2008. מדובר בחוק קצר מאוד שכדאי לקרוא ולהכיר, במיוחד אם אתם לפני ביצוע רכישה של רכב משומש.
The Fair Disclosure Act applies only to transactions between a buyer and a used car dealer. This law does not apply to private sellers, but if there is a problem with a transaction made with a private individual, they can be sued under other laws, such as the Contracts Act.
If you discover that the car dealer has cheated you, you can file a lawsuit against him even if several years have passed since the transaction. In these cases, it is very worthwhile to seek the services of an automotive lawyer who has previously filed lawsuits against car dealers and won.
