How a failed software update led to the reversal of a BYD Atto 3 purchase
Nine weeks in the workshop, a missing control unit, and an update that wouldn't install: A client of Rogert & Ulbrich has withdrawn from his purchase agreement for a BYD Atto 3. BYD has accepted the withdrawal and is refunding the purchase price. The case demonstrates how buyers can proceed when faced with software problems.
The chronology: From new car to regular visitor to the repair shop
The case has FOCUS online The report was published on October 20, 2026. The buyer is anonymized. The key milestones:
- May 2026: Purchase of a fully electric BYD Atto 3 Evo for €38,575 including delivery. One advertised feature: over-the-air software updates.
- First update: Despite several attempts, the vehicle software update, including for the infotainment system, cannot be installed remotely.
- Workshop appointment: The update also fails in the workshop. Several attempts to install the software via USB stick are unsuccessful.
- Further dates: The buyer has to visit the workshop several times and eventually receives a replacement vehicle.
- Diagnosis: The repair shop informs me that a control unit needs to be replaced. The part is not in stock and will not be delivered for weeks.
- After nine weeks: The vehicle remains in the workshop. The buyer commissions Rogert & Ulbrich and declares his withdrawal from the purchase agreement.
- October 2026: BYD accepts the cancellation. The vehicle will be collected, and the buyer will receive a full refund.
By October, the buyer had driven approximately 2,000 kilometers. About a third of that was for trips to the repair shop.
Has your car been in the repair shop for a while due to a software problem? Have it checked whether a refund is an option in your case.
Why resignation was possible here
We explain in detail in our article when a software error legally constitutes a material defect and what rights buyers then have. BYD software problems with app, navigation and online services. In this specific case, several circumstances came together that spoke in favor of resignation.
The seller had ample opportunity to rectify the fault. There were several unsuccessful attempts to install the update. The problem then turned out to be a component that was unavailable for weeks. A new car that cannot be used for approximately nine weeks is unacceptable for a buyer.
Dr. Marco Rogert explained the case to FOCUS online as follows: Modern vehicles are increasingly software-controlled products. If essential functions are not reliably available due to a software problem, this can constitute a significant defect. Buyers do not have to accept such limitations permanently. This case demonstrates that consumer rights can be enforced even in cases of software-related defects.
It is noteworthy that no court proceedings were necessary. A well-documented history of defects and a clear legal justification increase the chances of an out-of-court settlement.
Has your vehicle been stationary for weeks with no end in sight? Have it checked to see if it's time to cancel the contract.
Goodwill or legal entitlement: What lies behind the agreement
BYD has accepted the resignation as a gesture of goodwill following the FOCUS online report. For those affected, the difference between goodwill and a legal entitlement is important.
Goodwill is a voluntary gesture. A manufacturer or retailer may grant it, but is not obligated to do so. A legal claim, on the other hand, exists regardless of the other party's goodwill. If necessary, it can be enforced in court.
In practice, both levels often overlap. If a buyer provides a legally sound justification for their withdrawal from the contract and fully documents the history of defects, the risk of litigation increases for the other party. An out-of-court settlement is then frequently the more economically sensible option, also for the manufacturer.
Conversely, anyone requesting a retraction without justification or evidence is solely dependent on the other party's cooperation. If the other party refuses, the dispute often starts all over again.
BYD told FOCUS online that it works with its service partners to find quick solutions to technical complaints. Since this year, service partners have been receiving overnight deliveries of spare parts. However, in the case described, the workshop stated that the required control unit was still unavailable for weeks.
Is your dealer only offering goodwill gestures or putting you off? Have your legal rights checked.
What needed to be checked before the resignation
A withdrawal from the contract terminates the purchase agreement. It should therefore only be declared once the necessary conditions have been met. In the BYD case, the main questions were:
- Is there a deficiency? The update could not be installed, and a control unit had to be replaced. This confirmed a technical defect in the vehicle.
- If the attempt to rectify the situation has failed: Several update attempts via remote transfer and USB stick were unsuccessful. A completion of the repair was not foreseeable.
- Is further waiting reasonable? After about nine weeks in the workshop and without a firm delivery date for the spare part, there were many arguments against it.
- Is the deficiency significant? A new car that cannot be used reliably for weeks is not comparable to a minor cosmetic defect.
- Who is the correct recipient: Warranty claims are generally directed against the seller. In the BYD case, the manufacturer accepted the cancellation. The specific circumstances are determined by the purchase agreement.
- Are there any other contracts? In the case of financed or leased vehicles, a cancellation also affects these contracts and must be coordinated with them.
Each of these questions depends on the circumstances of the individual case. Ultimately, what matters is the specific history of the defects, i.e., what was reported, attempted, and communicated, and when.
Do not declare your resignation on your own before these issues are resolved. An invalid resignation will waste time and weaken your negotiating position.
The reversal of the transaction: What the buyer gets back
With the cancellation, the purchase agreement is reversed. The buyer returns the vehicle, and BYD refunds the purchase price. At the time of the report, it was still unclear whether a usage fee would be deducted.
Legally, such a deduction is generally permissible, as the buyer has used the car for a period of time. A common calculation is based on the formula: gross purchase price multiplied by kilometers driven, divided by the expected total mileage. For example, assuming a total mileage of 250,000 kilometers, a purchase price of €38,575 and 2,000 kilometers driven would result in a deduction of approximately €309.
In this case, there's a special circumstance: roughly a third of the mileage was for trips to the repair shop. The buyer didn't undertake these trips to use the car, but rather to have the defect repaired. Whether and how such mileage is taken into account in the settlement must be clarified on a case-by-case basis. Anyone affected should therefore record trips to the repair shop separately from the outset.
This is how the return process practically works
Once the cancellation is accepted or enforced, the practical steps begin. In the case of BYD, the vehicle needs to be collected. Typically, the following points need to be clarified:
- Return date: The place and time of handover will be agreed upon; in the case of BYD, this will be by collection from the buyer.
- Handover protocol: Condition, mileage, and accessories are documented in writing. Photos taken on the day of handover protect against later disputes.
- Keys and accessories: All keys, vehicle documents and included accessories such as charging cables must be returned.
- Registration and insurance: It needs to be clarified who deregisters or transfers the vehicle's registration and when the insurance ends.
- Refund: The purchase price will be refunded, possibly less a usage fee. Payment and return usually occur simultaneously.
- Personal Data: Paired smartphones, user accounts in the vehicle app and saved addresses should be deleted before returning the vehicle.
After returning a vehicle, many buyers face the question of buying a new one. According to the report, the buyer in the BYD case has again opted for an electric car, this time from a different manufacturer.
Before you agree to an invoice or sign a handover protocol, have the total mileage and kilometers charged checked.
What other buyers can learn from this case
The case involves a BYD, but the lessons learned apply to vehicles from all manufacturers. Software plays an increasingly important role in cars, and with it, the risk of update errors grows. According to the FOCUS report, a US customer survey by JD Power revealed that over-the-air updates failed to resolve existing problems in 58 percent of cases. Only 27 percent of respondents reported improved functionality. After 14 percent of the updates, even more problems arose than before.
Remote updates are intended to eliminate the need for workshop visits. If they fail, the advantage reverses: the vehicle still has to go to the workshop, and there, the necessary expertise or the right spare part is sometimes lacking. This is exactly what happened in the BYD case.
Five points proved crucial in this case:
- Complete workshop history: Every appointment, every update attempt, and every diagnostic check of the control unit was traceable. This proves that the repair was unsuccessful.
- Clear timeline: The nine-week period without a usable vehicle made it clear that further waiting was unacceptable.
- Written defect notices: Verbal complaints at the repair shop are not sufficient. Every defect report should be made in writing, for example by email, so that it can be proven later.
- Separate mileage recording: Trips to the repair shop should be recorded separately, as they can play a role in the compensation for use.
- Legal representation: The resignation was explained on legal grounds. This creates clarity and avoids errors that could jeopardize a reversal of the transaction.
Our article also shows how to clearly document defects in electric cars. Securing evidence in cases of range deficiencies. The steps described there can be applied to software errors.
Are you in a similar situation? Secure your documents and have your options reviewed before waiting for further workshop appointments.
Rogert & Ulbrich – Your lawyers for car defects
Rogert & Ulbrich has been representing car buyers against dealers and manufacturers for many years, from the emissions scandal to defects in modern electric vehicles. The partners Dr. Marco Rogert and Tobias Ulbrich have extensive experience in Automotive sector, even in the case of software and electronics defects.
We review your defect history, declare your withdrawal from the contract if necessary, and enforce the reversal of the transaction with the retailer or manufacturer. This also includes reviewing any compensation for usage.
Is your vehicle experiencing software problems that the garage can't resolve? Take contact and secure your claims.
