Many people wait for the annual Autofestival to benefit from advantageous offers in the country's dealerships. Before inspecting the offers, it's a good idea to brush up on some important constraints to avoid any unpleasant surprises.

The Ministry for Consumer Protection and the Luxembourg Consumers' Union (ULC) have published a series of tips to keep in mind before spending money.

Are you buying a new car?

  • Carefully examine the terms of the sales contract before signing it: the chosen model, options, and equipment should all be listed on the document.

  • Insist on a specific delivery date: the ULC warns that "vague wording such as 'as soon as possible' or 'end of 2023' should not be accepted". Ideally, it should be agreed in writing that the buyer will be entitled to a free replacement vehicle if the delivery date is delayed.

  • Beware of possible indexation clauses: this is especially important in case of a relatively long delivery period. Do not hesitate to reread the clauses in your contract to avoid ending up with a bill higher than expected when your vehicle is delivered.

  • Care is also needed when handing over your old vehicle. The trade-in price can be reduced, especially if the delivery time for your new car is relatively long. It is therefore advisable to reread the clauses in your vehicle purchase contract.

  • In the case of a purchase with a personal loan, the Ministry for Consumer Protection recommends that buyers "insert a suspensive clause in the contract to not be contractually bound in the event of a credit refusal".

Are you buying a used car?

  • Check the condition of the car "for any defects it might have on the day of sale".

  • Check the kilometre reading of the vehicle on the day of sale. This should be "accurately recorded" in the sales contract.

  • Find out the year the car was built and the date it was put on the road. This will enable you to check the value of the vehicle by looking at specialised websites. It is strongly recommend that you review the Argus rating of the car.

  • Bring someone you trust and who has a certain level of mechanical knowledge along.

  • Don't sign anything without reading what is in front of you. "The ULC advises consumers to scrutinize any document submitted for signature and to sign it only if they have the firm intention of acquiring the vehicle mentioned in it.

  • If you intend on financing the purchase of the vehicle with a personal loan, the advice remains the same: insert a suspensive clause linked to obtaining a credit (as is traditionally done in the real estate business).

Also good to know: whether you buy a new or used vehicle from a professional, a two-year legal guarantee is required. However, for second-hand vehicles, this warranty may be reduced to one year if the vehicle was first put into circulation more than one year ago.

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Sellers' obligations

The Ministry for Consumer Protection took the opportunity to draw attention to the fact that according to the consumer code, prices must always be "indicated, easily identifiable, and easily readable". This regulation was put into place so that sellers cannot temper with prices.

In the case of a car order, the same principle applies. "The trader is bound by the price stipulated in the sales contract and cannot unilaterally stipulate a higher price. This applies both to the prices displayed in the sales room and to those displayed in the order form or contract. It should be noted that the selling prices must be indicated including VAT and all taxes and must disregard any state bonuses," the ministry's press release states.

Finally, if there is an indexation clause, it must be clearly indicated, "understandable" and "detail the methods of re-calculation". In this context, authorities remind that checks will be carried out on vehicle dealers throughout the festival.

This year's edition of the annual Autofestival will end on 4 February.

Read also: Buying a new or used car in Luxembourg