Thursday, 7 July 2016

Beware when buying a car: CJEU judgment on information regarding transfer costs of a motor vehicle
Cars and consumer information prove to be a tricky combination. 

Today the EU Court of Justice gave judgment in a German case concerning an advertisement for a Citroën motor vehicle (C-476/14). The Court ruled that, pursuant to Directive 98/6/EC on consumer protection in the indication of the prices of products offered to consumers, costs in connection with the transfer of a motor vehicle from the manufacturer to the dealer, which are payable by the consumer, must be included in the selling price of that vehicle indicated in an advertisement made by the trader. Such costs form a component of the final price, which enables consumers to evaluate and compare the price of products indicated in an advertisement with the price of other similar products and thereby to make an informed choice on the basis of simple comparisons.

Earlier this year (March 2016), an ECC-Net report has been published about cross-border car purchases and registration, which are prone to fraud. Consumers are recommended to thoroughly check what is being offered, including whether the price of the car is comparable to that of similar models, whether the seller is acting lawfully, and that all the car's documentation is in order. 

So consumers, beware when buying a car!

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