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UAE court cancels car sale after finding odometer tampering

The Al Ain civil, commercial and administrative court has ordered the cancellation of a car sale after ruling that the vehicle’s odometer had been deliberately tampered with, directing the seller to refund the buyer Dh85,000 and pay an additional Dh10,000 in compensation.

The case was filed by a young man who said he bought the car after seeing an online advertisement claiming the vehicle had logged no more than 13,000 kilometers and was still covered by the manufacturer’s warranty.

According to court records, the seller provided photos of the mileage reading and inspection reports, prompting the buyer to proceed with the purchase through bank financing and complete the transfer of ownership.

However, a subsequent inspection at the vehicle’s authorized dealership revealed that the odometer had been manipulated. Official records showed the car had previously travelled 149,000 kilometers before the reading was reduced to 13,000, a discrepancy the court described as a “hidden and fundamental defect.”

The buyer sought the return of the purchase price, financing-related costs, and damages, arguing that the sale was based on false operational data amounting to fraud.

The seller denied the allegations, claiming the complaint was malicious and insisting that the buyer had inspected and test-driven the vehicle, and that the financing bank had also conducted checks prior to approving the loan.

A court-appointed technical expert found that the mileage tampering constituted a material defect that could not be detected through ordinary inspection. The expert concluded that the defect existed before the sale, was irreparable, and reduced the vehicle’s market value by an estimated Dh25,000.

In its ruling, the court said it was satisfied that the defect was “old, hidden and substantial,” noting that the contract was concluded on the basis of inaccurate information that undermined the buyer’s consent.

It also rejected claims that inspections by the buyer or the bank absolved the seller of liability, saying such defects cannot be identified through visible examination alone.

The court further upheld the buyer’s claim for damages, citing material losses related to registration, financing, and legal proceedings, as well as moral harm due to distress and anxiety.

The judgment ordered the rescission of the sales contract, the return of the vehicle to the seller, the repayment of the Dh85,000 purchase price, and Dh10,000 in compensation, in addition to court fees and related costs.

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