The UAE has witnessed significant growth in the market for second-hand vehicles. Many of these purchases are initiated through online platforms, where the advertisements, supporting documents, and representations made by the seller often suggest that the vehicle is free from defects. However, there has been a noticeable increase in disputes involving concealed engine problems, undisclosed accident history, flood damage, odometer tampering, gearbox defects, and chassis damage. This has become particularly relevant following the Dubai floods, after which many flood-damaged vehicles have re-entered the market.

The primary question that arises for consumers is: What happens when a second-hand vehicle is discovered to have a hidden defect that existed before the sale but was never disclosed? This issue is governed by both the Consumer Protection Law and the Civil Transactions Law of the UAE.

What is a Latent Defect?

The law presumes that the subject matter of a contract of sale is free from any undisclosed hidden defects. In the context of second-hand vehicle sales, this means that although a vehicle is used, the buyer is entitled to expect that it does not suffer from undisclosed latent defects that materially affect its value or intended use. This principle is embodied in Federal Decree-Law No. (25) of 2025 Promulgating the Civil Transactions Law.

A latent defect also includes a defect that becomes apparent only after delivery, provided that it arose from an underlying cause that already existed before the vehicle was delivered to the buyer.

Characteristics of a Latent Defect

Article 494(2) of the Federal Decree-Law No. (25) of 2025 provides that a latent defect generally possesses the following characteristics:

  1. The defect existed in the vehicle before the sale or arose while it remained in the seller’s possession before delivery.
  2. The defect cannot be discovered through ordinary inspection by an average purchaser.
  3. The defect can only be identified by an expert, such as a qualified mechanic or automotive engineer.
  4. The defect becomes apparent only after diagnostic testing or use of the vehicle.

Consumer Protection Obligations in the Sale of Second-Hand Vehicles

  1. Accurate Description of the Vehicle – Article 17 of Federal Law No. (15) of 2020 on Consumer Protection requires the seller to accurately describe the vehicle and prohibits the provision of false information or the concealment of facts relating to its actual condition.
  2. No Misleading Advertisements – Article 17 of the Consumer Protection Law and Article 8 of Cabinet Resolution No. (66) of 2023 prohibit advertisements and descriptions that create a false or misleading impression regarding the vehicle.
  3. Disclosure that the Vehicle is Used – Article 7 of Cabinet Resolution No. (66) of 2023 requires the seller to clearly state that the vehicle is used. The condition of the vehicle must also be recorded in the sale contract and the invoice issued to the buyer.
  4. Disclosure of Material Information – Article 8 of the Cabinet Resolution further requires the seller to accurately disclose the vehicle’s nature, condition, appearance, specifications, history, warranty, and any after-sales services offered.

Fraud, Misrepresentation and Concealment

Articles 170 to 173 of the Federal Decree-Law No. (25) of 2025 Promulgating the Civil Transactions Law govern deception, misrepresentation, and concealment.

  1. Deception by Fraudulent Means – A seller must not induce a buyer to enter into a contract through fraudulent statements or conduct that influences the buyer’s decision to purchase.
  2. Concealment by Silence – Deliberately withholding information about a material fact, such as a known latent defect, may constitute deception if the buyer would not have entered into the contract had the defect been disclosed. Where such deception results in gross unfairness, the buyer may seek the annulment of the contract.
  3. Liability for Concealing Material Defects – Concealing pre-existing mechanical defects, accident history, flood damage, or other material defects may expose the seller to legal liability where such concealment induces the buyer to purchase the vehicle.

Conclusion

Purchasing a second-hand vehicle should not mean sacrificing the right to transparency and fair dealing. UAE law provides comprehensive protection to buyers by requiring sellers to accurately disclose the condition of a vehicle and by providing legal remedies where latent defects or deceptive practices are discovered. Buyers who encounter concealed defects should promptly obtain an independent expert inspection and seek legal advice to safeguard their rights.

We at Ayesha Aldhaheri Lawyers & Legal Consultants, we regularly advise and represent clients in disputes involving second-hand vehicle sales, latent defects, consumer protection claims, and contractual disputes. Our team is committed to protecting consumers’ rights and assisting clients in pursuing the appropriate legal remedies available under UAE law.