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Returning an electric car – cancellation, price reduction or compensation?

What options exist for getting rid of an electric car or reducing the price, and when each option is worthwhile.

Do you want to return your electric car or claim a partial refund? Depending on the situation, options such as cancellation, price reduction, compensation, revocation, or the "button solution" (a German form of cancellation) may be considered. This article organizes the options to help you decide, explaining when each approach is worthwhile and what you need to consider.

Five ways to return an electric car or reduce the price

If you're dissatisfied with your electric car, you have more options than many people think. The best course of action depends on whether there's a defect, how you purchased the vehicle, and whether you want to keep it or return it.

  • Subsequent fulfillment: The dealer either repairs the defect or delivers a defect-free vehicle. This is usually the first step in dealing with a material defect.
  • Resignation: You return the vehicle and receive the purchase price minus a usage fee. This is conditional upon a significant defect.
  • Reduction: They keep the vehicle and demand a partial refund of the purchase price.
  • Damages: They demand compensation for diminished value or for additional costs, such as an expert opinion.
  • Cancellation or button solution: When buying online, you may be able to withdraw from the contract even if there is no defect.

Are you unsure which path is right for you? Have your case reviewed before you commit to anything.

Keep or return? The first decision

It starts with a simple question: Do you want to keep the vehicle or get rid of it? Your answer already significantly narrows down the sensible options.

If you want to keep the electric car but are seeking compensation for its diminished value, a price reduction or damages claim will achieve your goal. You lower the price, and the vehicle remains with you. If, on the other hand, you wish to return the vehicle, rescission of the contract, cancellation, or the "button solution" (returning the car) are options. In these cases, you return the car and receive a full or partial refund of the purchase price.

This fundamental decision is important because it determines the subsequent strategy. Those who only want financial compensation should not prematurely declare their withdrawal from the contract, and those who want to get rid of the vehicle should not consider a price reduction as their only option.

We'll work together to determine whether keeping or returning the item makes more financial sense for you. We'll show you the consequences of each option.

The remedies for defects: subsequent performance, price reduction, rescission, damages

If your complaint concerns a defect, such as insufficient range or a prematurely aging battery, the statutory warranty rights under § 437 of the German Civil Code (BGB) apply. These rights are structured in tiers.

As a rule, the first step is to attempt to remedy the defect. Only if this fails, is impossible, or if a reasonable deadline passes without success, are rescission of the contract or price reduction considered. Rescission requires a significant defect, for which the ten percent threshold established in case law serves as a guideline. Price reduction is also possible for minor defects. In addition, damages may be claimed, for example, for expert fees.

Whether a defect exists depends on the individual case. We discuss the two most common starting points in detail on our pages about... Reversal of an electric car purchase due to insufficient range and, once published, in the article on the battery shortage.

Do you suspect a lack of range, battery, or software? We'll check which of the tiered solutions is best for you.

The contractual options: Cancellation and button solution

If you purchased your electric car entirely online, for example through a manufacturer's direct sales channel, you may be able to withdraw from the contract even without any defects. Two scenarios must be distinguished in this regard.

  • Cancellation: Distance selling contracts typically have a 14-day right of withdrawal. If the withdrawal instructions are incorrect, this period can be extended considerably, potentially up to one year and 14 days.
  • Button solution: If the order button was only neutrally labelled and lacked any indication of the payment obligation, then no valid contract could have been concluded.

That both approaches to buying a car can work is demonstrated by rulings concerning Tesla. The Higher Regional Court of Stuttgart has ruled on both... Right of withdrawal when ordering a Tesla online confirmed as well as the Successful return of a Tesla purchased online This has been made possible. The advantage of these methods: A defect in the vehicle is irrelevant.

Did you buy your vehicle online? We'll check whether cancellation or the button solution offers you the faster option.

What determines the right path: the decision tree

The strongest path can be determined by answering a few guiding questions. These can be worked through like a decision tree.

  • Lack or not: If a defect exists, the usual remedies for material defects are available. If there is no defect, only cancellation or the "button solution" remain, and these only apply to online purchases.
  • Keep or return: If you want to keep the vehicle, a price reduction will achieve your goal. If you want to return it, you can consider rescission, cancellation, or the "button solution" (a simple cancellation option).
  • Online or at the retailer: The right of withdrawal and the "button solution" only apply to online purchases. Warranty rights remain in effect for purchases made at a car dealership.
  • Mileage: In cases of high mileage, the usage fee can make a cancellation economically unattractive, while a revocation or button solution may be more favorable.

Often, several approaches can be combined or used as alternatives. The best order depends on the individual case.

Want to know which path will give you the best results? We'll compare your options and recommend the most effective approach.

Deadlines at a glance and what you should do now

Every path has its own deadline, and those who wait too long miss opportunities. An overview of the most important deadlines.

  • Cancellation: 14 days from the legal requirements; significantly longer in case of incorrect instruction.
  • Warranty rights: The statute of limitations for a new car is generally two years from delivery.
  • Reversal after the button solution: The regular limitation period for the repayment claim is three years.

There are special rules for leased electric cars, both regarding warranty rights and returns. We cover these on our page about... Lease and rental car return. Rogert & Ulbrich have extensive experience in enforcing such claims against manufacturers, gained from numerous vehicle-related legal proceedings. emissions scandal trusted.

Do not sign any waiver or settlement agreement and do not accept any offer from the dealer until your case has been reviewed.

The sooner your case is reviewed, the more options remain open. Secure your claims while the deadlines are still open.

Rogert & Ulbrich – Your lawyers specializing in electric vehicle defect law

Rogert & Ulbrich represents consumers nationwide in vehicle and contract law and has its own Automotive sector as well as a bundled page on Tesla defects. The law firm of Dr. Marco Rogert and Tobias Ulbrich has represented a large number of consumers and conducted vehicle-related litigation against manufacturers for many years in the emissions scandal. This experience in enforcement is now benefiting buyers of electric cars.

We examine all options, from subsequent performance to price reduction and rescission, to cancellation and the "button solution," quantify your claims, and negotiate with the retailer and manufacturer. If no satisfactory solution can be reached, we enforce your rights in court.

Do you want to return your electric car or get a price reduction? Get in touch and secure your rights.

FAQs – Frequently asked questions about returning an electric car