[REAL 1]

Depends on how long #2 owned the car and whether the faillure was attributable to improper construction or maintenance. The longer the car goes without a problem the stronger the argument for improper maintenence in most cases.

As noted above its smart to sell the car "As is" and note it on the paper work.

Product liability would not be the correct theory for a private owner who merely built his own car since he is not in the business of manufacture, sale/distribution of the product in the stream of commerce.