Seller’s Liability for Defects in Second-Hand Vehicle Sales: What Are the Buyer’s Rights?

Disputes frequently arise in second-hand vehicle transactions, especially when the purchased vehicle is later discovered to have hidden defects. This article explores the concept of “defect” under Turkish law, the seller’s liability, the buyer’s legal remedies, and relevant legal deadlines, supported by statutory provisions and case law.

1. What Constitutes a Defect? (Article 219 of the Turkish Code of Obligations)

According to Article 219 of the Turkish Code of Obligations (TCO):

“The seller shall be liable for any defects in the goods that render them unfit for their intended use or diminish their value at the time of delivery, even if the seller was unaware of such defects.”

In second-hand vehicle sales, the following are commonly considered defects:

• Previous accidents not disclosed to the buyer
• Tampered odometer (mileage fraud)
• Engine, transmission, or airbag malfunctions
• Use of non-original or unreported replacement parts
• Concealed bodywork or paint damage

Defects may be “apparent” (visible upon delivery) or “hidden” (discovered later with usage or technical inspection).

2. The Seller’s Liability for Defects

a) Apparent vs. Hidden Defects

• Apparent defects are noticeable upon basic inspection.
• Hidden defects are not visible and may only become evident after extended use or with expert analysis.

Even if the seller claims ignorance, liability still applies. Moreover, stating “sold as-is” or “second-hand” does not exempt the seller from legal responsibility.

b) Good Faith and Objective Expectations

Even if an expert report is provided, if the defect was intentionally concealed, the buyer still retains legal remedies. The law protects the buyer who cannot reasonably be expected to detect complex mechanical or structural defects.

3. The Buyer’s Rights (Article 227 TCO)

If a vehicle is found to be defective, the buyer may exercise one of the following statutory options:

1. Rescind the contract and return the vehicle for a full refund.
2. Request a reduction in the purchase price.
3. Demand repair of the defective parts.
4. Request replacement with a defect-free equivalent (rare in second-hand sales).

Once a right is chosen, the others are forfeited. The buyer must act within legal timeframes and maintain proper documentation of the defect and communications with the seller.

4. Notification and Limitation Periods

a) Notification Obligation (Article 223 TCO)

• The buyer must notify the seller within a reasonable time after discovering the defect.
• For hidden defects, the clock starts from the date of discovery, not delivery.

b) Limitation Period (Article 231 TCO)

• As a general rule, claims for defective goods must be filed within 2 years of delivery.
• If the defect was fraudulently concealed, this time limit does not apply, and the buyer may sue at any time.

5. Common Scenarios in Practice

6. Turkish Court of Cassation Ruling

In a 2017 decision (Yargıtay 13. HD, 2016/20419 E., 2017/6284 K.), the Court held:

“It is established that the seller knew of the odometer rollback and deliberately concealed it. The buyer is entitled to rescind the sale.”

This and similar rulings affirm that intentional concealment or misrepresentation enables the buyer to fully exercise their legal rights.

Defects in second-hand vehicles can cause significant financial and legal consequences. Turkish law provides the buyer with several protective mechanisms. Timely notification and supporting documentation (e.g., inspection reports, witness statements) are critical.

Buyers who encounter defect-related disputes are advised to seek professional legal support to avoid loss of rights or procedural errors.

At Türeli&Ceylan Law Firm, we offer legal advice and litigation services in disputes arising from vehicle sales and misrepresentation, tailored to both buyers and sellers.