Defective new car: the dealer and the manufacturer can both be liable
A new car is supposed to work. When it does not, buyers are often passed between the dealer, the manufacturer and the finance company. This decision shows that a consumer can hold both the dealer and the manufacturer responsible.
In short
- The buyer had the car on hire purchase from a finance company, so did not own it. The buyer could still sue as a consumer.
- The service book naming the buyer made the warranty a service contract. The manufacturer, which supervised the dealer's repairs, shared the warranty.
- When the repair failed, the court ordered the dealer and manufacturer jointly to pay 750,000 baht with interest.
What happened
The buyer had driven the car for only seven months and about 12,000 km when the engine began to lose power and would not accelerate properly. The dealer's workshop tried to fix it, with the manufacturer supervising. On the test drive the car still struggled to accelerate when overtaking, so the buyer refused to take it back and sued both the dealer and the manufacturer.
Two legal hurdles
The buyer did not own the car. It was on hire purchase from a finance company. But when the dealer delivered the car, it also handed over a service book naming the buyer as the customer entitled to warranty service. The court treated that arrangement as a service contract between the dealer and the buyer, and as part of the contract under section 11 of the Consumer Case Procedure Act.
The manufacturer had not sold the car to the buyer. But it closely controlled and supervised the dealer's repair standards. The court found that it had joined with the dealer in giving the warranty. Both were businesses providing a service, and the buyer was a consumer of that service, so the buyer could sue both.
Hire purchase does not take away your rights. Most cars in Thailand are bought on hire purchase, so the finance company is the legal owner until the last payment. As this case shows, the person using the car can still claim against the dealer and manufacturer under consumer law.
The rules on remedies
- Section 41. Where a product had a defect when delivered that cannot be fixed so it works normally, or would still be dangerous after repair, the court can order the business to replace it instead of repairing it.
- Section 39. Where the consumer's claim or requested remedy is not right or not enough, the court can set the correct amount or a suitable remedy, even beyond what was asked.
What the Supreme Court decided
In decision No. 4567/2561, the Supreme Court found that the dealer and manufacturer could not prove the defect had been fixed. They were jointly liable for it. Using sections 39 and 41, the court ordered them together to pay the buyer 750,000 baht with interest at 7.5% a year (the statutory rate at the time).
What this means for car buyers
- Keep the service book, every job card and every message about the fault.
- Report the problem in writing and let the dealer try to fix it, but do not accept the car back if the fault is still there.
- You can claim even if the car is on hire purchase, and you may be able to claim against the manufacturer as well as the dealer.
Legal references
- Consumer Case Procedure Act B.E. 2551 (2008), sections 11, 39 and 41
- Supreme Court decision No. 4567/2561 (2018)
This explainer gives general information about Thai law as at 14 October 2026. It is not advice on your situation. Interest rates and amounts in court decisions reflect the law when each decision was made. Contact the office before you act.