Selling a modified car--disclaimers? waviers?

RallyJon · 06-29-2005, 08:16 AM

I'm interested in how people have handled disclosures when selling a modified car.

This can come up with newer cars as well as older hot rods. Has anyone ever made a buyer sign a waiver or other statement that protects the seller from liability?

Recently on Subaru forums, there was a case where one young guy sold a formerly-heavily modified WRX to another young guy. The motor ate rings shortly thereafter and of course the warranty was denied. What's the burden of disclosure in this case?

Imagine the many modified 911s here. What happens when you sell a car with non-stock brakes or suspension, and the new owner has an accident? Even with stock systems, what about the liability of a seller who DIYs, say, a brake rebuild?

It's easy to say that all sales are "as is" but how well does this concept hold up when a disgruntled buyer comes back after the seller?

RallyJon · 06-29-2005, 09:58 AM

One other thought--BIRA (a company that makes caliper adapters for using Porsche calipers on Audis) has a pre-purchase contract that actually prohibits you from reselling their adapters, as well as absolving them from any liability. OK, so it's run by a lawyer, but still...

jorian · 06-29-2005, 10:10 AM

I think liability (someone is injured) could be an issue but to trace back problems on a modded car back to the original owner would be a difficult if not futile excercise. IIRC in the US used cars on a dealers lot all carry the AS-IS disclaimer. It must work if they all use it. The new owner would have to prove gross negligence or fraud. Not easy to do. Of course on Pelican i'd like to think that a seller would try to work with a buyer should a problem arise shortly after sale. Call me naive...

jluetjen · jluetjen's Garage

Buyer Beware! Car is sold "as-is" with no warranty. Make sure that the buyer signs the bill of sale that states that. I'm no lawyer, but in the absence of gross fraud, I'm not sure what grounds the buyer would have go after the seller if they willingly signed such a document.

That being said, there is nothing that I'm aware of in the US legal system that would prevent someone from sueing someone else. The thing is that they may not have "an icecubes chance in hell" of winning, but they can sue.

mattr_914 · 06-29-2005, 10:26 AM

I think in California there is a form to fill out that waives the liability of the previous owner. Im not totally sure, but Ive filled one out. Good question though, Im curious to see what the board says.

RallyJon · 06-29-2005, 10:48 AM

I'm thinking the issue I'm talking about goes beyond "as-is" which is pretty much a condition/maintenance thing. I could be wrong--maybe as-is covers the Chevy Chevette brakes you installed on your Cayenne before selling it. Or more likely the Wilwood calipers that require a yearly rebuild and shouldn't be driven in the rain.

Dantilla · 06-29-2005, 04:43 PM

If a buyer crashes on the way home from the sale, you may have a problem. I have driven my modded 911 for a couple of years now, so the car has a record of returning home safe.

Once the buyer has had the car for a while, I don't think there would be a problem.