Canceling a car purchase in Israel of a new or a used car (second hand) is not an easy task – but possible with the help of a lawyer experienced in these issues! Most of the time, canceling a car purchase, you will have to file a lawsuit in court, because the car seller (private person or company) will not rush to return the money to you of his own good will. In court you will have to prove that the seller hid from you a material detail regarding the vehicle, and if you had known this important detail you would not have purchased the vehicle in the first place.
Canceling a car purchase of a used car – general information
Canceling a car purchase bought from lot may be a particularly complex task if you are not familiar with the provisions of the Law on the Sale of Used Purchases (Right to Information and Due Disclosure), 2008. In these cases, you should always consult with an automobile attorney to clarify your situation . the legal and what are your rights.
The used car sales law is a very short law that requires the seller (lot owner or car dealer) to provide details to the buyer and deliver to him a due diligence form detailing details relevant to the vehicle being sold/purchased (for example, but not only, if the vehicle has been in accidents ). In some cases, failure to deliver this form to the buyer is enough to demand the cancellation of a transaction for the purchase of a used (second-hand) vehicle . Please note – a private seller is not obligated to provide you with a due diligence form.
It is possible to demand the cancellation of a transaction for the purchase of a used vehicle if all the conditions have not been met according to the law on the sale of used cars. If necessary, a claim can be filed against a used or new car dealer with the help of a lawyer who deals with claims against car dealers.
The position of the district court regarding canceling a car purchase
An interesting case on the issue of canceling a deal to purchase a used car from a car dealer's lot came before the district court. The Magistrate's Court rejected a claim by a car buyer from a lot and did not approve canceling a car purchase. The plaintiff did not give up and filed an appeal to the district court, where he won the requested relief (CA 62888-11-15 Shmuel Amitai v. David Lubinski Ltd.).
The district court specifically stated that a transaction for the purchase of a used car from a lot must be ordered to be canceled when the seller did not observe all the provisions of the Used Car Sale Law. In other words, a claim for the sale of a defective vehicle was justified. Among other things, it is determined as follows:
In the lower part of the document addressed to the respondent and including the appellant's statement that he received the car, checked it and has no claims or complaints, and that all the terms of the agreement have been fulfilled, is recorded in a handwritten note dated 05.30.2011.
I did not find in the main points of the argument and in the summaries of the respondent's counsel any reference to the question of when she had to hand over to the appellant the documents that meet the requirement of due disclosure.
While there is no dispute that the full price of the vehicle was paid by the appellant on 05.16.11.
The obvious conclusion is that this is the time when the respondent had to give him all the relevant information, including the fact that the vehicle's engine was replaced.
Refraining from providing the information before the contract is completed constitutes a violation of the duty of disclosure in the pre-contractual phase and amounts to a violation of the duty of good faith.
I believe that the respondent did not comply with the duty of disclosure by handing over the documents to the appellant on the day the vehicle was delivered.
Therefore, I decided to accept the appeal and determine that the appellant is entitled to cancel the sales transaction, as well as compensation for the damages he suffered.
Since the issue of compensation and damages was not considered, I am returning the hearing to the Magistrate's Court in order to discuss the financial results of the cancellation of the deal, considering the fact that at the time of the hearing of the case in the Court of First Instance, the vehicle was not usable, and the appellant's compensation.
What do you do after you decide you want to cancel a used car purchase deal?
It is important to understand that it is not possible to demand the cancellation of a transaction for the purchase of a car in any case (for example: it is not enough that you regretted it or that you suddenly discovered that you cannot meet the payments for you to have the right to demand the cancellation of a transaction). Cancellation of a vehicle purchase transaction can be requested mainly in cases where a defect in the vehicle was discovered that the seller did not declare and did not disclose to the buyer.
The more serious the discovered defect, the higher the chance that the court will order the cancellation of the car purchase transaction and the return of the car to the seller.
After discovering the defect, contact must be made verbally and in writing (email or fax is sufficient – there is no obligation to send a letter by registered mail as this takes quite a bit of time). If you decide to contact the lot or the business from which you purchased the vehicle by phone – be sure to record the conversation .
List your claims and carefully document the business's answer. If you record the call, you do not have to indicate that the call is being recorded.
If the business admits your claims but flatly refuses the request to cancel the car purchase transaction, there will be no other choice but to go to court by filing a lawsuit.
In cases of this type, it is recommended to use the services of a lawyer for automobile matters who specializes and knows how to represent plaintiffs in court in the field of automobiles. Contrary to popular opinion, not every lawyer deals and specializes in litigation , and choosing an inexperienced lawyer may decrease your chances of success.
In a situation where the business agrees to cancel the transaction but conditions the cancellation of the transaction for the purchase of a car with a partial refund of the payment – do not agree and state that even in this situation you will go to court. If a full refund is decided, return the vehicle you received to the lot as soon as possible.
To which court should you file a lawsuit to cancel a car deal?
In order to know to which court you should file a claim regarding the cancellation of a used car deal, you need to understand the amount of the claim. The amount of the claim in these cases consists of the value of the vehicle you bought (and now you demand cancellation of the transaction) and the additional damages you suffered (if any).
As long as the amount of the claim does not exceed NIS 36,500 (the amount is updated slightly every year), it is possible to demand the cancellation of a transaction to purchase a used car also in a small claims court. Please note that the claim in this case can also be submitted to the Magistrate's Court, but the procedure in the Magistrate's Court is usually Longer and more expensive (you will have to hire the services of a lawyer and the Magistrate's Court fee is higher).
Small Claims Court has a number of notable shortcomings. First, lawyers will not be able to represent you and make claims in a professional manner regarding the cancellation of a deal to purchase a used car (lawyers are not allowed to represent in this court without obtaining a permit, which is rarely granted).
Second, the time allotted for each discussion usually does not exceed 30 minutes. This period of time does not usually allow to examine all the claims of the plaintiff demanding the cancellation of a car purchase transaction. This issue often requires an in-depth factual investigation which is not possible in a small claims court.
On the other hand, the most prominent disadvantage in the Magistrate's Court is the costs that the plaintiff will have to pay. A claim to cancel a car purchase transaction is not a simple claim. The more expensive the purchased vehicle, the more strongly the defendant objects to the court confirming the cancellation of the deal.
For this reason it is important to hire the services of a lawyer experienced in filing and managing claims on this subject. Since this is not a simple issue, the fees may reach significant amounts, especially when it comes to a professional, experienced, and successful lawyer in this field (you are invited to read about the successes of our firm, recommendations from previous clients, and publications in the media about the successes of attorney Eddie Blitshtein, at the bottom of the page It).
Along with the notable disadvantage, there is also a notable advantage, and that is the considerable time that will be devoted to clarifying the claims. The more the court digs into the plaintiff's claims, the easier it will be to prove that the plaintiff deserves to receive relief in the form of cancellation of a car purchase deal.
Difficulties that may arise when conducting a lawsuit for the purpose of canceling a car purchase
One of the main difficulties that may arise when conducting a lawsuit for the purpose of canceling a vehicle purchase transaction is if you fail to prove in court that there is indeed a defect in the vehicle that was hidden from you before or during the purchase.
For this purpose, it is sometimes advisable to consider submitting an expert opinion in order to make it clear to the judge hearing the case what the defects are, what they are worth, and how much they reduce the value of the vehicle. An expert opinion of this type may cost several thousand shekels. Also, you should use witnesses who were with you during the purchase phase so that they can testify about the details that the seller gave (or hid) to you.
Another difficulty when conducting a lawsuit for the purpose of canceling a car deal is if you do not have the relevant witnesses or documents or evidence. It is very worthwhile to take care of collecting all the data even before filing a lawsuit . The more data you have, the easier it will be to draft the statement of claim correctly and more accurately.
Another difficulty when managing the procedure is the time the plaintiff will have to devote to the lawsuit. Although the lawyer represents you in court, you will have to attend most of the hearings in person. If you don't attend the hearings, the court may charge you legal fees. It is important to understand that managing a claim to cancel a car deal will take your time, and you should be prepared for that.
In conclusion – canceling a car purchase deal must be examined on its merits
Each case of cancellation of a transaction for the purchase of a used vehicle from a lot must be examined on its merits, but the starting point is to examine the provisions of the Law on the Sale of Used Purchases (Right to Information and Due Disclosure), 2008.
Also, it is important to examine which documents you signed when making the transaction, and what information was given to you about the vehicle. It is very useful to find and save the ad that was published on the Internet because it is possible that you will discover details that will make it easier for you to get relief for canceling a deal for the purchase of a used car.
Want to know if you are entitled to demand cancellation of a transaction for the purchase of a new or used car? Send us a message with a detailed description of the deal (new car or not, what documents you received, how long it has been since the deal was made, whether there is a fault with the car, and any other detail that may be relevant). After examining the case, attorney Eddie Blitstein will get back to you with an answer.