{"id":5356,"date":"2026-10-22T17:53:15","date_gmt":"2026-10-22T15:53:15","guid":{"rendered":"https:\/\/bwlaw.de\/knowledge-base\/car-dealer-concealed-defect-germany\/"},"modified":"2026-10-22T17:53:15","modified_gmt":"2026-10-22T15:53:15","slug":"car-dealer-concealed-defect-germany","status":"publish","type":"page","link":"https:\/\/bwlaw.de\/en\/knowledge-base\/car-dealer-concealed-defect-germany\/","title":{"rendered":"Car dealer concealed a defect in Germany? What must be disclosed and when you can avoid the purchase"},"content":{"rendered":"\r\n<div id=\"progress\" aria-hidden=\"true\"><\/div>\r\n\r\n<header>\r\n  <div class=\"wrap\">\r\n    <a href=\"\/en\/\" class=\"brand\" aria-label=\"BWLAW \u2013 home\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"BWLAW \u2013 law firm in Germany\" width=\"42\" height=\"28\"><\/a>\r\n    <nav aria-label=\"Main navigation\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Corporate law<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Employment law<\/a>\r\n      <a href=\"\/en\/defective-car-from-germany\/\">Cars<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\" class=\"active\">Knowledge base<\/a>\r\n      <a href=\"\/en\/#zespol\">Team<\/a>\r\n    <\/nav>\r\n    <div class=\"lang\" role=\"group\" aria-label=\"Language\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/car-dealer-concealed-defect-germany\/\" class=\"active\" lang=\"en\" hreflang=\"en\" aria-current=\"true\">EN<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/wissen\/arglistige-taeuschung-autokauf\/\" lang=\"de\" hreflang=\"de\" aria-label=\"German version of this article\">DE<\/a>\r\n      <a href=\"https:\/\/bwlaw.de\/pl\/baza-wiedzy\/ukryta-wada-samochodu-z-niemiec\/\" lang=\"pl\" hreflang=\"pl\" aria-label=\"Polish version of this article\">PL<\/a>\r\n    <\/div>\r\n    <a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/#kontakt\" class=\"btn\">Contact us <span class=\"arr\">\u2192<\/span><\/a>\r\n    <button class=\"burger\" aria-label=\"Menu\">\u2630<\/button>\r\n  <\/div>\r\n<\/header>\r\n\r\n<section class=\"shero\" style=\"padding-bottom:3.5rem\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\" style=\"grid-template-columns:1fr\">\r\n    <div>\r\n      <nav class=\"crumbs\" aria-label=\"Breadcrumbs\"><a href=\"\/en\/\">Home<\/a><span>\/<\/span><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><span>\/<\/span><b>Cars<\/b><\/nav>\r\n      <span class=\"eyebrow\">Cars<\/span>\r\n      <h1 style=\"max-width:32ch\">Car dealer concealed a defect in Germany? What must be disclosed and when you can avoid the purchase<\/h1>\r\n      <p class=\"lead\">Has your car dealer concealed a defect in Germany, such as an accident, a repair or the car\u2019s past as a rental car? A hidden defect gives you warranty rights, and fraud by the seller (arglistige T\u00e4uschung) even lets you avoid the contract, including after the warranty has expired or where it was excluded. The Higher Regional Court of Munich has shown the limits of this route, though (judgment of 1 July 2026, 7 U 2446\/24): the note \u201cTaxi- \/Miet\/Fahrschulwagen\u201d in the contract was enough, and the dealer did not have to disclose repairs between signing and handover, because the car was free of defects on handover. This guide explains what a German dealer must disclose without being asked, how to avoid the purchase and what you have to prove.<\/p>\r\n      <div class=\"art-meta\">\r\n        <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr. Artur Barczewski\" width=\"46\" height=\"46\" loading=\"lazy\">\r\n        <div><b>Dr. Artur Barczewski<\/b>niedergelassener europ\u00e4ischer Rechtsanwalt \/ Radca prawny<\/div>\r\n        <div style=\"margin-left:1rem;border-left:1px solid rgba(255,255,255,.25);padding-left:1rem\">\u2248 18 min read<br>updated: October 2026<\/div>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<article class=\"sec\">\r\n  <div class=\"wrap\">\r\n    <div class=\"prose rv\" style=\"font-size:1.02rem\">\r\n      <figure style=\"margin:0 0 2rem\"><picture><source type=\"image\/webp\" srcset=\"\/wp-content\/uploads\/2026\/10\/arglist-gebrauchtwagen-hero-1200.webp 1200w, \/wp-content\/uploads\/2026\/10\/arglist-gebrauchtwagen-hero-1600.webp 1600w\" sizes=\"(max-width: 800px) 100vw, 760px\"><img src=\"\/wp-content\/uploads\/2026\/10\/arglist-gebrauchtwagen-hero-1200.webp\" alt=\"Car key on a used car sales contract and a workshop invoice, illustration for the article on concealed defects when buying a car in Germany\" width=\"1200\" height=\"675\" loading=\"lazy\" decoding=\"async\" style=\"width:100%;height:auto;border-radius:16px;display:block\"><\/picture><\/figure>\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What did the Higher Regional Court of Munich decide?<\/h3>\r\n      <p>The Higher Regional Court of Munich (Oberlandesgericht M\u00fcnchen) dismissed the appeal of a buyer who had avoided her used car purchase for fraud, in German arglistige T\u00e4uschung (final judgment of 1 July 2026, 7 U 2446\/24). The court refused leave to appeal on points of law, and the judgment is final. The dismissal of her claim by the Regional Court of Munich II of 20 June 2024 therefore stands.<\/p>\r\n      <p>On 26 October 2018 the buyer had bought a Renault estate with 23,761 km on the clock from a car dealership for \u20ac23,590. On 6 November 2018 the dealer had repairs carried out on the car, and on 15 November 2018 it handed the car over. About two years later, by a lawyer\u2019s letter that reached the dealer on 14 November 2020, the buyer avoided the contract. She relied on two allegations. First, the dealer had concealed that the car had previously been used as a rental car. Second, it had kept quiet about the work done between signing and handover. According to the buyer, that work concerned the cylinder head, the head gasket, the camshaft, the front and rear axles and the gearbox, among other things. The dealer said it had merely replaced a leaking gasket on the timing cover housing.<\/p>\r\n      <p>Neither allegation succeeded. The rental history was stated in the contract and, according to the salesman\u2019s testimony, had also been mentioned orally. And in the court\u2019s view the dealer did not have to disclose repairs after which the car was free of defects on handover, even if the work was as extensive as the buyer claimed.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Avoidance for fraud or rescission for defects: which way out of a car purchase?<\/h3>\r\n      <p>Anyone who wants to give back a used car bought in Germany has two legally distinct tools. Rescission (R\u00fccktritt) is based on a defect, meaning the condition of the car when the risk passes to the buyer (sections 434, 437 no. 2 and 323 of the German Civil Code, BGB). Avoidance for fraud (Anfechtung wegen arglistiger T\u00e4uschung) looks at a different moment, the conclusion of the contract: the buyer avoids his or her own declaration to buy, because the seller induced it by deceit (section 123 (1) BGB). Once avoided, the contract is treated as void from the outset (section 142 (1) BGB).<\/p>\r\n      <style>\r\n.prose .bwarg{margin:2rem 0;padding:1.4rem 1.4rem 1.2rem;background:var(--ivory,#FAF7F3);border:1px solid var(--line,#E5DED6);border-radius:16px}\r\n.prose .bwarg__t{display:block;font-weight:700;font-size:1.12rem;line-height:1.3;margin:0 0 1rem;color:var(--ink,#161513)}\r\n.prose .bwarg__g{display:grid;grid-template-columns:.9fr 1.2fr 1.2fr;gap:.5rem;align-items:stretch}\r\n.prose .bwarg__h{border-radius:12px;padding:.7rem .9rem;color:#fff;font-weight:700;text-align:center;line-height:1.25;margin:0}\r\n.prose .bwarg__h small{display:block;font-weight:400;opacity:.85;font-size:.8rem;margin-top:.15rem}\r\n.prose .bwarg__h--a{background:var(--terra,#C25531)}\r\n.prose .bwarg__h--b{background:var(--ink,#161513)}\r\n.prose .bwarg__l{font-size:.78rem;font-weight:700;color:#5E5A55;text-transform:uppercase;letter-spacing:.04em;align-self:center;margin:0}\r\n.prose .bwarg__c{background:#fff;border:1px solid var(--line,#E5DED6);border-radius:10px;padding:.6rem .8rem;font-size:.92rem;line-height:1.35;margin:0}\r\n.prose .bwarg__n{font-size:.8rem;color:#5E5A55;margin:1rem 0 0;line-height:1.4}\r\n.prose .bwarg__tl{list-style:none;margin:0;padding:0;display:grid;grid-template-columns:repeat(5,1fr);gap:.6rem;position:relative}\r\n.prose .bwarg__tl::before{content:\"\";position:absolute;left:0;right:0;top:2.15rem;height:3px;background:#5E5A55;border-radius:2px}\r\n.prose .bwarg__tl li{position:relative;text-align:center;margin:0;padding:0 .2rem}\r\n.prose .bwarg__tl .d{display:block;font-weight:700;font-size:.85rem;color:var(--ink,#161513);height:1.5rem;line-height:1.5rem}\r\n.prose .bwarg__tl i{display:block;width:18px;height:18px;border-radius:50%;background:var(--ink,#161513);border:3px solid var(--ivory,#FAF7F3);margin:.15rem auto .5rem;position:relative}\r\n.prose .bwarg__tl li.k .d{color:var(--terra,#C25531)}\r\n.prose .bwarg__tl li.k i{background:var(--terra,#C25531)}\r\n.prose .bwarg__tl b{display:block;font-size:.92rem;line-height:1.3}\r\n.prose .bwarg__tl .s{display:block;font-size:.8rem;color:#5E5A55;line-height:1.3;margin-top:.15rem}\r\n.prose .bwarg__box{margin:1.1rem 0 0;background:#fff;border-left:5px solid var(--terra,#C25531);border-radius:10px;padding:.8rem 1rem;font-weight:700;font-size:.95rem;line-height:1.4}\r\n@media (max-width:560px){\r\n.prose .bwarg{padding:1.1rem 1rem 1rem}\r\n.prose .bwarg__g{grid-template-columns:1fr 1fr}\r\n.prose .bwarg__e{display:none}\r\n.prose .bwarg__l{grid-column:1\/-1;margin-top:.55rem}\r\n.prose .bwarg__c{font-size:.88rem}\r\n.prose .bwarg__tl{grid-template-columns:1fr;gap:.9rem;padding-left:1.5rem}\r\n.prose .bwarg__tl::before{left:.5rem;right:auto;top:.4rem;bottom:.4rem;width:3px;height:auto}\r\n.prose .bwarg__tl li{text-align:left;padding:0 0 0 .4rem}\r\n.prose .bwarg__tl i{position:absolute;left:-1.4rem;top:.1rem;margin:0}\r\n.prose .bwarg__tl .d{height:auto;line-height:1.3}\r\n}\r\n<\/style>\r\n<figure class=\"bwarg\" aria-label=\"Two ways out of a car purchase\">\r\n<figcaption class=\"bwarg__t\">Two ways out of a car purchase<\/figcaption>\r\n<div class=\"bwarg__g\">\r\n<span class=\"bwarg__e\" aria-hidden=\"true\"><\/span>\r\n<p class=\"bwarg__h bwarg__h--a\">Avoidance for fraud<small>s. 123 BGB<\/small><\/p>\r\n<p class=\"bwarg__h bwarg__h--b\">Rescission for defects<small>ss. 437, 323 BGB<\/small><\/p>\r\n<p class=\"bwarg__l\">Requirement<\/p>\r\n<p class=\"bwarg__c\">fraud when the contract is made<\/p>\r\n<p class=\"bwarg__c\">defect on handover<\/p>\r\n<p class=\"bwarg__l\">Deadline<\/p>\r\n<p class=\"bwarg__c\">1 year from discovery, max. 10 years<\/p>\r\n<p class=\"bwarg__c\">limitation 2 years from delivery<\/p>\r\n<p class=\"bwarg__l\">Chance to repair?<\/p>\r\n<p class=\"bwarg__c\">no<\/p>\r\n<p class=\"bwarg__c\">as a rule yes<\/p>\r\n<p class=\"bwarg__l\">Warranty exclusion<\/p>\r\n<p class=\"bwarg__c\">irrelevant<\/p>\r\n<p class=\"bwarg__c\">void in case of fraud (s. 444)<\/p>\r\n<p class=\"bwarg__l\">Unwinding<\/p>\r\n<p class=\"bwarg__c\">ss. 812, 818 BGB<\/p>\r\n<p class=\"bwarg__c\">ss. 346, 348 BGB<\/p>\r\n<\/div>\r\n<p class=\"bwarg__n\">If the seller acted fraudulently, warranty claims fall under the regular limitation period (s. 438 (3) BGB)<\/p>\r\n<\/figure>\r\n      <p>The differences matter in practice. Rescission normally requires an unsuccessful deadline for the seller to remedy the defect (section 323 (1) BGB), and warranty claims for a car generally become time-barred two years after delivery (section 438 (1) no. 3 and (2) BGB). For used vehicles sold to consumers the dealer may even shorten this period to one year, but under current law only if it informs the buyer of this specifically beforehand and the shortening is agreed expressly and separately (section 476 (2) BGB). Avoidance needs no deadline for repair. It must be declared within one year of discovering the deceit and is excluded ten years after the contract was made (section 124 (1) to (3) BGB).<\/p>\r\n      <p>Then there is the exclusion of liability. Clauses such as \u201cgekauft wie gesehen\u201d (bought as seen) or a warranty exclusion when buying for a business concern warranty rights, they do not touch avoidance under section 123 BGB. Even a clause excluding avoidance in the event of the seller\u2019s own fraud would be invalid, because according to the Federal Court of Justice a party who deceives deserves no protection (BGH, judgment of 17 January 2007, VIII ZR 37\/06, NJW 2007, 1058, para. 18). Where the seller fraudulently concealed a defect, it cannot rely on such an exclusion anyway (section 444 BGB), and warranty claims are then subject only to the regular three-year limitation period, counted from the end of the year in which the buyer learns of the defect and the deceit (section 438 (3), sections 195 and 199 (1) BGB). That is why avoidance is typically the remedy of choice once the warranty has expired or was excluded. In the Munich case almost exactly two years passed between handover and receipt of the avoidance letter.<\/p>\r\n      <p>The price for these advantages is the burden of proof. The buyer must plead and prove the deceit, the resulting mistake, its influence on the decision to buy and the seller\u2019s intent. Most avoidance claims fail at this hurdle in practice, and so did the buyer in Munich.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">When does a concealed defect amount to fraud by the dealer?<\/h3>\r\n      <p>Deceit can be committed actively or by silence. A seller deceives actively by making false statements, for example by writing \u201cunfallfrei\u201d (accident-free) in the advert while knowing of accident damage, or by giving an untrue answer to a specific question. Silence amounts to deceit only where the seller had a duty to disclose. The seller acts fraudulently if it knows that the information is wrong, or at least considers this possible and accepts that the buyer would not have bought, or not on these terms, without the mistake. Negligence is not enough.<\/p>\r\n            <blockquote style=\"margin:1.6rem 0;padding:1.2rem 1.5rem;background:rgba(194,85,49,.08);border-left:3px solid var(--terra);border-radius:0 14px 14px 0\">\r\n        <p style=\"font-style:italic;margin-bottom:.7rem\" lang=\"de\">\u201eNach der st\u00e4ndigen Rechtsprechung des Senats handelt ein Verk\u00e4ufer bereits dann arglistig, wenn er zu Fragen, deren Beantwortung erkennbar ma\u00dfgebliche Bedeutung f\u00fcr den Kaufentschluss seines Kontrahenten hat, ohne tats\u00e4chliche Grundlagen ins Blaue hinein unrichtige Angaben macht\u201c<\/p>\r\n        <p style=\"margin-bottom:.7rem\">\u201cAccording to the settled case law of the Senate, a seller already acts fraudulently if, in response to questions whose answers are recognisably of decisive importance for the other party\u2019s decision to buy, it makes incorrect statements off the cuff without any factual basis\u201d<\/p>\r\n        <p style=\"font-size:.85rem;color:var(--ink-soft);margin:0\">BGH, judgment of 7 June 2006, VIII ZR 209\/05, BGHZ 168, 64, para. 13 \u2014 our translation<\/p>\r\n      <\/blockquote>\r\n      <p>A dealer who promises \u201caccident-free\u201d without having inspected the car must therefore make clear that it does not know for certain. Absent specific indications, it is not obliged to inspect the car for accident damage, but a promise that sounds like reliable knowledge makes it liable (BGH, VIII ZR 209\/05, para. 15). Conditional intent is sufficient.<\/p>\r\n      <p>Finally, the deceit must have influenced the decision to buy. It need not be the only reason, it is enough that it was one of several causes (BGH, judgment of 22 February 2005, X ZR 123\/03, NJW-RR 2005, 1082). This creates a time limit that mattered in Munich: what happens only after the signature cannot have caused the signature. The court expressly left open whether work carried out after the contract was made can ever justify avoiding that contract, because there was no duty to disclose in the first place.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">What must a car dealer in Germany disclose without being asked?<\/h3>\r\n      <p>Not everything the buyer might be interested in. The Munich court summed up the starting point of the Federal Court of Justice\u2019s case law as follows:<\/p>\r\n      <blockquote style=\"margin:1.6rem 0;padding:1.2rem 1.5rem;background:rgba(194,85,49,.08);border-left:3px solid var(--terra);border-radius:0 14px 14px 0\">\r\n        <p style=\"font-style:italic;margin-bottom:.7rem\" lang=\"de\">\u201eInsoweit ist beachtlich, dass den Verk\u00e4ufer keine generelle Verpflichtung trifft, den K\u00e4ufer von sich aus \u00fcber alle Umst\u00e4nde aufzukl\u00e4ren, die f\u00fcr den Vertragsentschluss des K\u00e4ufers von Bedeutung sein k\u00f6nnten\u201c<\/p>\r\n        <p style=\"margin-bottom:.7rem\">\u201cIn this respect it must be borne in mind that the seller is under no general obligation to inform the buyer, of its own motion, of all circumstances that could be relevant to the buyer\u2019s decision to enter into the contract\u201d<\/p>\r\n        <p style=\"font-size:.85rem;color:var(--ink-soft);margin:0\">OLG M\u00fcnchen, final judgment of 1 July 2026, 7 U 2446\/24, para. 28, citing BGH, judgment of 13 July 1983, VIII ZR 142\/82 \u2014 our translation<\/p>\r\n      <\/blockquote>\r\n      <p>A duty to disclose exists only where the buyer can expect the information in good faith (Treu und Glauben). For used cars, settled case law applies this above all to accident damage. The reason is economic: accident damage that is more than trivial reduces the market value of the car even after a professional repair, because buyers pay less for a car that has had an accident (merkantiler Minderwert, loss of market value).<\/p>\r\n            <blockquote style=\"margin:1.6rem 0;padding:1.2rem 1.5rem;background:rgba(194,85,49,.08);border-left:3px solid var(--terra);border-radius:0 14px 14px 0\">\r\n        <p style=\"font-style:italic;margin-bottom:.7rem\" lang=\"de\">\u201eDanach muss der Verk\u00e4ufer eines Gebrauchtwagens einen Schaden oder Unfall, der ihm bekannt ist oder mit dessen Vorhandensein er rechnet, grunds\u00e4tzlich auch ungefragt dem K\u00e4ufer mitteilen, wenn er sich nicht dem Vorwurf arglistigen Verschweigens aussetzen will, es sei denn, der Schaden oder Unfall war so geringf\u00fcgig, dass er bei vern\u00fcnftiger Betrachtungsweise den Kaufentschluss nicht beeinflussen kann.\u201c<\/p>\r\n        <p style=\"margin-bottom:.7rem\">\u201cAccordingly, the seller of a used car must, as a rule, inform the buyer even without being asked of any damage or accident of which it is aware or whose existence it suspects, if it does not wish to be accused of fraudulent concealment, unless the damage or accident was so minor that, on a reasonable view, it cannot influence the decision to buy.\u201d<\/p>\r\n        <p style=\"font-size:.85rem;color:var(--ink-soft);margin:0\">BGH, default judgment of 10 October 2007, VIII ZR 330\/06, NJW 2008, 53, para. 20 \u2014 our translation<\/p>\r\n      <\/blockquote>\r\n      <p>A mere trifle need not be disclosed. The Federal Court of Justice draws this line narrowly, though: for passenger cars only very minor external paint damage counts as trivial, not sheet-metal damage, even if it had no further consequences and was cheap to repair (BGH, VIII ZR 330\/06, para. 20). A second rule applies regardless of any duty to disclose: if the buyer asks a specific question, the answer must be true. A seller who answers a question about accidents, previous owners or prior use falsely or misleadingly deceives actively.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Former rental car: is a note in the contract enough?<\/h3>\r\n      <p>In the Munich case it was. One of ten text fields with the vehicle data on the contract form stated in typescript that, according to the previous owner, the car had been used as a \u201cTaxi- \/Miet\/Fahrschulwagen\u201d, meaning taxi, rental car or driving school car. The buyer argued that this combined entry did not show that the car had actually been a rental car. Neither the Regional Court nor the Higher Regional Court accepted this: the prior use was expressly named, and the form did not provide for ticking one of the three options at all. In addition, the salesman testified that he had mentioned the rental history orally. The Regional Court found him credible, and the Higher Regional Court saw no reason to doubt that assessment. The vehicle documents also listed a car rental company as the first registered keeper.<\/p>\r\n            <p>Whether a dealer must disclose prior use as a rental car without being asked at all has not, as far as can be seen, been decided by the Federal Court of Justice, and the lower courts are divided. The Higher Regional Court of Stuttgart found a duty to disclose where a young car (first registered in 2006) was sold first-hand after being used exclusively as a rental car by its first owner: for an average private customer such prior use is atypical and usually causes a loss of market value. An incomprehensible note on the order form was not sufficient disclosure (judgment of 31 July 2008, 19 U 54\/08). The Higher Regional Court of Cologne requires disclosure at least where a car was used for many years as a taxi, driving school car or rental car, but denied a duty where the rental period lasted only about six months shortly after first registration (judgment of 29 May 1996, 13 U 161\/95). The Regional Court of Kaiserslautern rejected any duty to disclose for a former rental car sold as a one-year-old car (order of 25 March 2009, 2 O 498\/08). The Munich court did not have to decide the question, because the prior use had been disclosed.<\/p>\r\n      <p>For buyers this means that a clear entry in the contract counts as disclosed, even if it sits inconspicuously between the date of first registration and the mileage. An incomprehensible abbreviation, however, is not enough. Read the contract field by field before you sign, and where an entry lumps together \u201ctaxi\/rental\/driving school\u201d, ask which of these applies. Ideally get the answer in writing.<\/p>\r\n      <p>This should not be confused with consumer warranty law, which has been considerably stricter for dealers since 2022. If a dealer wants to agree that a car deviates from the usual requirements in a particular feature, it must inform the consumer of this specifically before the contract is made, and the deviation must be agreed expressly and separately (section 476 (1) second sentence BGB). Pre-printed tick boxes do not meet this standard, as the Higher Regional Court of Cologne has held. More on this in our article on <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/used-car-dealer-warranty-germany\/\">dealer tick-box disclaimers<\/a>. That rule did not yet apply to the Munich contract of 2018, and for avoidance the only question is whether the buyer was deceived.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Must the dealer disclose repairs between the contract and handover?<\/h3>\r\n      <p>No, at least not where the car is free of defects on handover and the repair does not concern a circumstance that would have to be disclosed anyway. That is the core of the judgment. The court focused on the passing of risk: risk passes to the buyer on handover (section 446 first sentence BGB), and at that point the car must be free of defects. The 2018 contract was governed by section 434 BGB in the version in force until 31 December 2021 (Article 229 section 58 of the Introductory Act to the Civil Code, EGBGB), but in the court\u2019s view nothing has changed as to the decisive point in time.<\/p>\r\n      <figure class=\"bwarg\" aria-label=\"The case OLG M\u00fcnchen 7 U 2446\/24: what mattered in time\">\r\n<figcaption class=\"bwarg__t\">The case OLG M\u00fcnchen 7 U 2446\/24: what mattered in time<\/figcaption>\r\n<ol class=\"bwarg__tl\">\r\n<li class=\"k\"><span class=\"d\">26 Oct 2018<\/span><i aria-hidden=\"true\"><\/i><b>Contract<\/b><span class=\"s\">fraud must work here<\/span><\/li>\r\n<li><span class=\"d\">6 Nov 2018<\/span><i aria-hidden=\"true\"><\/i><b>Repair<\/b><span class=\"s\">engine gasket<\/span><\/li>\r\n<li class=\"k\"><span class=\"d\">15 Nov 2018<\/span><i aria-hidden=\"true\"><\/i><b>Handover<\/b><span class=\"s\">passing of risk (s. 446)<\/span><\/li>\r\n<li><span class=\"d\">March 2020<\/span><i aria-hidden=\"true\"><\/i><b>Buyer learns<\/b><span class=\"s\">of the repair<\/span><\/li>\r\n<li><span class=\"d\">14 Nov 2020<\/span><i aria-hidden=\"true\"><\/i><b>Avoidance<\/b><span class=\"s\">reaches the dealer<\/span><\/li>\r\n<\/ol>\r\n<p class=\"bwarg__box\">On handover the car was free of defects. The dealer did not have to disclose the earlier repair.<\/p>\r\n<\/figure>\r\n      <blockquote style=\"margin:1.6rem 0;padding:1.2rem 1.5rem;background:rgba(194,85,49,.08);border-left:3px solid var(--terra);border-radius:0 14px 14px 0\">\r\n        <p style=\"font-style:italic;margin-bottom:.7rem\" lang=\"de\">\u201eDie Beklagte hat ihre Vertragspflichten damit objektiv und subjektiv erf\u00fcllt. Ob und welche Instandsetzungsarbeiten zur Erf\u00fcllung dieser Vertragspflichten zuvor erforderlich waren, musste die Beklagte der Kl\u00e4gerin nicht mitteilen.\u201c<\/p>\r\n        <p style=\"margin-bottom:.7rem\">\u201cThe defendant thus fulfilled its contractual obligations objectively and subjectively. Whether, and which, repair work had previously been necessary to fulfil these contractual obligations was not something the defendant had to tell the claimant.\u201d<\/p>\r\n        <p style=\"font-size:.85rem;color:var(--ink-soft);margin:0\">OLG M\u00fcnchen, final judgment of 1 July 2026, 7 U 2446\/24, para. 31 \u2014 our translation<\/p>\r\n      <\/blockquote>\r\n      <p>The reasoning is this: the buyer pays for a car free of defects and received exactly that. How the dealer got it into that condition is the dealer\u2019s business. Things would be different if the repair revealed a circumstance that permanently reduces the car\u2019s value, such as accident damage. The buyer did not rely on that, however, and alleged neither an accident nor a loss of market value. Rescission was not an option either, because the car had no defect.<\/p>\r\n      <p>Notably, the buyer did win a procedural point. The Regional Court had dismissed her allegations about the extent of the work as speculation \u201cins Blaue\u201d, a shot in the dark. The Higher Regional Court disagreed: a buyer who lists the work done, submits the car\u2019s repair history and offers an expert report as evidence pleads with sufficient precision (para. 27). It just did not help her, because even if her allegations were taken as true, they gave no ground for avoidance.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Why was the case already decided at first instance?<\/h3>\r\n      <p>Because the appeal court is, as a rule, bound by the findings of fact made at first instance. It establishes the facts anew only where specific indications raise doubts about their accuracy or completeness (section 529 (1) no. 1 of the German Code of Civil Procedure, ZPO). The court stressed that repeating the taking of evidence is not at the appeal court\u2019s free discretion and comes into question only where there is a certain likelihood that the first-instance findings will turn out to be wrong. The first-instance court assesses evidence according to its free conviction (section 286 (1) ZPO) and may believe a witness even where individual circumstances could raise doubts.<\/p>\r\n      <p>For buyers this means that the examination of the salesman at first instance is the decisive moment of the whole case. A buyer who has no evidence of his or her own at that point, such as chat histories, the advert, a person who came along as a witness or written answers to specific questions, stands little chance against a confident salesman in the witness box. This cannot be fixed on appeal.<\/p>\r\n\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">How do I avoid a car purchase for fraud, and what do I get back?<\/h3>\r\n      <p>You declare avoidance to the seller (section 143 (1) BGB), for evidential reasons in writing and with proof of receipt. Describe the deceit specifically and, as a precaution, declare rescission at the same time if warranty rights still exist. The one-year period runs from the day you discover the deceit (section 124 (2) first sentence BGB), for example from the garage diagnosis or the expert report that reveals the concealed accident damage. The Munich court left open whether the buyer there had met this deadline. Be careful about negotiating a discount once you know of the deceit: a buyer who confirms the contract knowing the ground for avoidance loses the right to avoid (section 144 (1) BGB).<\/p>\r\n            <p>If the avoidance is effective, you paid the price without legal grounds and can claim it back (section 812 (1) first sentence, first alternative BGB). In return the dealer can demand the car back and compensation for the kilometres driven, concurrently against repayment (sections 812 (1) and 818 (2) BGB, BGH, judgment of 7 June 2006, VIII ZR 209\/05, paras. 28 and 29). The deceived buyer has one important advantage: he or she can claim the price back even if the car was damaged or destroyed while in the buyer\u2019s hands and can only be returned in a reduced state or not at all (BGH, judgment of 8 January 1970, VII ZR 130\/68, BGHZ 53, 144, headnote 1). In such cases the Federal Court of Justice examines avoidance and rescission side by side (BGH, VIII ZR 209\/05, para. 7), so it pays to declare both.<\/p>\r\n      <p>How a refund after rescission is calculated item by item is shown in our article on <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/car-purchase-rescission-germany\/\">car purchase rescission in Germany<\/a>.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"hl rv\" style=\"max-width:760px\">\r\n      <span class=\"eyebrow\">Checklist<\/span>\r\n      <h3>Suspect your car dealer concealed a defect? What to do now<\/h3>\r\n      <p>Read the contract field by field and ask about combined entries such as \u201cTaxi\/Miet\/Fahrschule\u201d. Save the advert, chats and e-mails with the dealer before the listing disappears. Ask about accidents, previous owners and repairs in writing and keep the answers. Request the repair history from the manufacturer or an authorised workshop. If you suspect accident damage, commission an expert report, the date of the finding starts the one-year period (section 124 BGB). Declare avoidance in writing with proof of receipt, and as a precaution rescission as well. Do not negotiate a discount before your strategy is settled (section 144 BGB). Prepare all witnesses and evidence for the first instance.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"prose rv\" style=\"font-size:1.02rem\">\r\n      <h3 style=\"font-size:1.35rem;margin-top:2.2rem\">Frequently asked questions<\/h3>\r\n      <p><strong>Does the dealer have to tell me the car was a rental car?<\/strong><br>The courts are not unanimous. The Higher Regional Court of Stuttgart found a duty to disclose for a young car that had been used exclusively as a rental car by its first owner (19 U 54\/08), other courts take a narrower view. A clear entry in the sales contract is in any event sufficient, as the Higher Regional Court of Munich held on 1 July 2026 (7 U 2446\/24). If in doubt, ask specifically, a false answer is active deceit.<\/p>\r\n      <p><strong>The dealer repaired the car before handover without telling me. Can I avoid the contract?<\/strong><br>As a rule not, if the car was free of defects on handover. The Higher Regional Court of Munich found no duty to disclose repair work between the contract and handover, even assuming work on the cylinder head, camshaft and axles. It may be different if the repair concerned accident damage that permanently reduces the car\u2019s value.<\/p>\r\n      <p><strong>How long do I have to avoid a car purchase for fraud?<\/strong><br>One year from the time you discover the deceit, but no more than ten years after you made your declaration to buy (section 124 BGB). The two-year limitation period for warranty claims plays no role for avoidance.<\/p>\r\n      <p><strong>Does avoidance help if the contract contains \u201cgekauft wie gesehen\u201d?<\/strong><br>Yes. A warranty exclusion only concerns warranty rights, not avoidance under section 123 BGB. In addition, a seller who fraudulently concealed a defect cannot rely on the exclusion (section 444 BGB). You do, however, have to prove the deceit.<\/p>\r\n      <p><strong>What do I have to prove?<\/strong><br>The deceit, your mistake, that the deceit influenced your decision to buy, and the seller\u2019s intent. Written evidence carries more weight than your recollection, because the salesman will usually testify as a witness for his employer.<\/p>\r\n      <p><strong>I live outside Germany and bought the car from a German dealer. Can you represent me?<\/strong><br>Yes. We review the contract, the advert and the correspondence, declare avoidance and rescission to the dealer and conduct the proceedings before the German court, in English, German and Polish. You can send us your documents online.<\/p>\r\n\r\n      <p style=\"font-size:.85rem;color:var(--ink-soft)\">Basis: OLG M\u00fcnchen, final judgment of 1 July 2026, 7 U 2446\/24 (first instance: LG M\u00fcnchen II, judgment of 20 June 2024), final and binding. This article is for information only and does not replace legal advice in an individual case.<\/p>\r\n    <\/div>\r\n\r\n    <div class=\"mini-cta rv\"><b>Deceived when buying a car in Germany?<\/b><span style=\"color:var(--ink-soft);font-size:.92rem\">Send us the sales contract, the advert and your correspondence with the dealer. We check whether avoidance or rescission will work and which deadlines are running. In English, German and Polish.<\/span><a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/#kontakt\" class=\"btn\">Send documents for review <span class=\"arr\">\u2192<\/span><\/a><\/div>\r\n    <div class=\"prose rv\" style=\"margin-top:1.5rem\">\r\n      <h3 style=\"font-size:1.1rem\">Related topics<\/h3>\r\n      <div class=\"chips\" style=\"margin-top:.8rem\">\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/accident-damaged-car-germany\/\">Accident-damaged car from Germany \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/warranty-exclusion-used-car-germany\/\">Warranty exclusion for used cars \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/car-purchase-rescission-germany\/\">Car purchase rescission in Germany \u2192<\/a>\r\n        <a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/\">Defective car from Germany \u2014 your rights \u2192<\/a>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/article>\r\n\r\n<section class=\"sec alt\">\r\n  <div class=\"wrap\">\r\n    <div class=\"lawyer rv\">\r\n      <img decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/dr-artur-barczewski.webp\" alt=\"Dr. Artur Barczewski \u2013 author of the article\" loading=\"lazy\">\r\n      <div>\r\n        <b>Dr. Artur Barczewski<\/b>\r\n        <div class=\"role\">niedergelassener europ\u00e4ischer Rechtsanwalt \/ Radca prawny<\/div>\r\n        <p>Author of this article. Represents clients before courts across Germany. <a href=\"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\">Meet the author \u2192<\/a><\/p>\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<section class=\"cta-end\">\r\n  <div class=\"glow\"><\/div>\r\n  <div class=\"wrap\">\r\n    <span class=\"eyebrow rv\">Contact<\/span>\r\n    <h2 class=\"rv d1\">Does your situation look similar?<\/h2>\r\n    <p class=\"rv d2\">Every case has details that change the outcome. Describe yours \u2014 you will receive a concrete answer and a fee overview.<\/p>\r\n    <div class=\"row rv d3\">\r\n      <a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/#kontakt\" class=\"btn\">Describe your case <span class=\"arr\">\u2192<\/span><\/a>\r\n      <a href=\"tel:+4933555310969\" class=\"phone\">\u260e +49 335 553 10969<\/a>\r\n    <\/div>\r\n  <\/div>\r\n<\/section>\r\n\r\n<footer>\r\n  <div class=\"wrap\">\r\n    <div class=\"foot-grid\">\r\n      <div>\r\n        <div class=\"foot-brand\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/themes\/bwlaw-child-1\/assets\/img\/logo-bw.png\" alt=\"BWLAW logo\" width=\"38\" height=\"26\"><\/div>\r\n        <p>Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<br>Rudolf-Breitscheid-Stra\u00dfe 10<br>15230 Frankfurt (Oder), Germany<br><a href=\"tel:+4933555310969\">+49 335 553 10969<\/a> \u00b7 <a href=\"mailto:info@bwlaw.de\">info@bwlaw.de<\/a><\/p>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Practice areas<\/div>\r\n        <ul>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/construction-law\/\">Construction law \/ VOB\/B<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/employment-law\/\">Employment law<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/debt-collection\/\">Debt collection<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/practice-areas\/company-formation\/\">Corporate law<\/a><\/li>\r\n          <li><a href=\"\/en\/defective-car-from-germany\/\">Defective car from Germany<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n      <div>\r\n        <div class=\"foot-h\">Legal<\/div>\r\n        <ul>\r\n          <li><a href=\"\/en\/\">Home<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/knowledge-base\/\">Knowledge base<\/a><\/li>\r\n          <li><a href=\"\/en\/contact\/\">Contact &amp; directions<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/impressum\/\">Legal notice (Impressum)<\/a><\/li>\r\n          <li><a href=\"https:\/\/bwlaw.de\/en\/privacy-policy\/\">Privacy policy<\/a><\/li>\r\n          <li><a href=\"#\" class=\"borlabs-cookie-preference\">Cookie settings<\/a><\/li>\r\n        <\/ul>\r\n      <\/div>\r\n    <\/div>\r\n    <div class=\"foot-bottom\">\r\n      <span>\u00a9 2026 BWLAW \u00b7 Kanzlei Dr. Barczewski &amp; Dr. Wr\u00f3blewska GbR<\/span>\r\n      <span>niedergelassene europ\u00e4ische Rechtsanw\u00e4lte \/ Radcowie prawni \u00b7 Frankfurt (Oder)<\/span>\r\n    <\/div>\r\n  <\/div>\r\n<\/footer>\r\n\r\n<div class=\"sticky-cta\">\r\n  <a href=\"tel:+4933555310969\" class=\"call\">\u260e Call us<\/a>\r\n  <a href=\"https:\/\/bwlaw.de\/en\/defective-car-from-germany\/#kontakt\" class=\"book\">Describe your case<\/a>\r\n<\/div>\r\n\r\n<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@graph\": [\r\n    {\r\n      \"@type\": \"Article\",\r\n      \"headline\": \"Car dealer concealed a defect in Germany? What must be disclosed and when you can avoid the purchase\",\r\n      \"description\": \"Car dealer concealed a defect in Germany? OLG M\u00fcnchen (7 U 2446\/24) on accidents, repairs, rental use and avoiding the purchase for fraud.\",\r\n      \"inLanguage\": \"en\",\r\n      \"image\": \"https:\/\/bwlaw.de\/wp-content\/uploads\/2026\/10\/arglist-gebrauchtwagen-og.jpg\",\r\n      \"author\": {\r\n        \"@type\": \"Person\",\r\n        \"name\": \"Dr. Artur Barczewski\",\r\n        \"url\": \"https:\/\/bwlaw.de\/en\/team\/artur-barczewski\/\"\r\n      },\r\n      \"publisher\": {\r\n        \"@type\": \"LegalService\",\r\n        \"name\": \"BWLAW \u2013 Kanzlei Dr. Barczewski & Dr. Wr\u00f3blewska GbR\",\r\n        \"url\": \"https:\/\/bwlaw.de\/\"\r\n      },\r\n      \"datePublished\": \"2026-10-22\",\r\n      \"dateModified\": \"2026-10-22\",\r\n      \"mainEntityOfPage\": \"https:\/\/bwlaw.de\/en\/knowledge-base\/car-dealer-concealed-defect-germany\/\"\r\n    },\r\n    {\r\n      \"@type\": \"FAQPage\",\r\n      \"mainEntity\": [\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Does the dealer have to tell me the car was a rental car?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"The courts are not unanimous. The Higher Regional Court of Stuttgart found a duty to disclose for a young car that had been used exclusively as a rental car by its first owner (19 U 54\/08), other courts take a narrower view. A clear entry in the sales contract is in any event sufficient, as the Higher Regional Court of Munich held on 1 July 2026 (7 U 2446\/24). If in doubt, ask specifically, a false answer is active deceit.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"The dealer repaired the car before handover without telling me. Can I avoid the contract?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"As a rule not, if the car was free of defects on handover. The Higher Regional Court of Munich found no duty to disclose repair work between the contract and handover, even assuming work on the cylinder head, camshaft and axles. It may be different if the repair concerned accident damage that permanently reduces the car\u2019s value.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"How long do I have to avoid a car purchase for fraud?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"One year from the time you discover the deceit, but no more than ten years after you made your declaration to buy (section 124 BGB). The two-year limitation period for warranty claims plays no role for avoidance.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"Does avoidance help if the contract contains \u201cgekauft wie gesehen\u201d?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"Yes. A warranty exclusion only concerns warranty rights, not avoidance under section 123 BGB. In addition, a seller who fraudulently concealed a defect cannot rely on the exclusion (section 444 BGB). You do, however, have to prove the deceit.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"What do I have to prove?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"The deceit, your mistake, that the deceit influenced your decision to buy, and the seller\u2019s intent. Written evidence carries more weight than your recollection, because the salesman will usually testify as a witness for his employer.\"\r\n          }\r\n        },\r\n        {\r\n          \"@type\": \"Question\",\r\n          \"name\": \"I live outside Germany and bought the car from a German dealer. Can you represent me?\",\r\n          \"acceptedAnswer\": {\r\n            \"@type\": \"Answer\",\r\n            \"text\": \"Yes. We review the contract, the advert and the correspondence, declare avoidance and rescission to the dealer and conduct the proceedings before the German court, in English, German and Polish. You can send us your documents online.\"\r\n          }\r\n        }\r\n      ]\r\n    }\r\n  ]\r\n}\r\n<\/script>\r\n","protected":false},"excerpt":{"rendered":"<p>Construction law Debt collection Corporate law Employment law Cars Knowledge base Team EN DE PL Contact us \u2192 \u2630 Home\/Knowledge base\/Cars Cars Car dealer concealed a defect in Germany? What must be disclosed and when you can avoid the purchase Has your car dealer concealed a defect in Germany, such as an accident, a repair [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5358,"parent":4417,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"template-bwlaw-page.php","meta":{"footnotes":"","rank_math_title":"Car dealer concealed a defect in Germany: rights | BWLAW","rank_math_description":"Car dealer concealed a defect in Germany? 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