10 FAQs about Lemon Law in the Philippines for Car Owners

Mar 15, 2023

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If your brand-new vehicle has defects after several days and you are living in the Philippines, these FAQs about Lemon Law in the Philippines are what you need.

The Republic Act No. 10642, also called the Philippine Lemon Law, was introduced in 2014 to protect vehicle purchasers against car dealers' trade malpractices. To understand what rights you have, common FAQs about Lemon Law in the Philippines and answers are provided below.

1. What is a Lemon Car?

A "lemon car" is defined as a newly-purchased vehicle bought from an authorized dealership in the Philippines. Within the first 12-month, if that car has gross defects and unresolved problems, and if all four repair attempts have not worked, it is considered a lemon car.

2. How does Lemon Law work?

In case your brand-new vehicle detects a problem, you need to bring it to the dealer right away. After your complaint is recorded, the dealer will give at least four attempts (in 1 year) to repair it.  If the dealer fails to fix your car problem, you can file the claim form and wait for the next step. The dealer may support you for a daily means of transportation or alternative vehicle during the fixing time.

Lemon Law in the Philippines

The Philippine Lemon Law was introduced in 2014 to protect vehicle purchasers against car dealers' trade malpractices

3. What vehicles are covered by the Lemon Law?

The Philippine Lemon Law is applied to vehicles carrying passengers, including SUVs, passenger cars, crossovers, pickups, AUVs, and vans. However, motorcycles, delivery trucks, dump trucks, buses, and heavy equipment like cranes and bulldozers are not included.

4. Does Lemon Law in the Philippines cover a modified car?

The RA 10642 is a fair game for both the customer and the dealer; since it gives both a level playing field. It prevents customers from making mods that negate the conditions and terms of the warranty.

This protection law in the Philippines also includes misuse and acts of nature that are not directly the dealer's fault. This prevents both dealers and buyers from shafting each other and protects each both parties' rights.

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Lemon Law in the Philippines also includes misuse and acts of nature that are not directly the dealer's fault

5. How long is the law’s effectiveness?

The law protects purchasers up to a year after buying or within the vehicle's first 20,000 km of total travel distance. The year-long period may be short; however, most car manufacturers these days offer warranty. The free preventive maintenance services (PMS) can last up to 3 years or more can help in resolving potential factory defects.

6. What are the specific defects that the law acknowledges?

This consumer protection law acknowledges all and any factory defects that are detrimental to the car's performance and safety, which fails to meet the manufacturer's standards and warranty claims. If flaws are identified, the dealer must take the responsibility to resolve the defective issues.

7. When and how can the consumer demand his/her rights under the law?

The consumer can ask the dealer to have the defective unit fixed within 12 months for at least four attempts. However, this comes with an agreement that the issue only persists if the consumer must return the unit within a month from the previous repair attempt. If unreturned within 30 days, the last repair may be considered as successful.

How Lemon Law benefits car buyers

8. Are there any issues going beyond the law’s protection?

Yes. These issues include unit modifications within the warranty period, non-compliance to the warranty terms and conditions, and careless use. Damages caused by acts of nature like earthquakes or flash floods and caused by accidents are likewise not honored.

This law aspect is essential to protect the honest dealers' rights against consumers who have wrongful intentions.

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Lemon Law in the Philippines

Damages caused by acts of nature like earthquakes or flash floods and caused by accidents are likewise not honored

9. What is the compensation for the customer during the unit repair?

During unit repair, the dealer shall provide the consumer with either a daily transportation allowance or a service vehicle. He/she can request the dealer to replace the unit with a similar car or a model of higher value. The consumer has to pay the additional cost if he/she chooses to have a more expensive model.

10. Can the dealer resell non-defective units if returned?

The dealer can sell it to another person, as long as the new buyer is given full documentation of its history. Not doing so may result in the dealer paying P100,000 in damages to the new buyer.

These are 10 of the basic questions that we hope will help you in better understanding the Philippine Lemon Law. Not only does it protect your rights as a car buyer, it also protects the rights of those honest car dealers.

Lemon Law in the Philippines: In Conclusion

These are 10 common FAQs about Lemon Law in the Philippines. Thanks to the Lemon Law, no matter if you are a car buyer or an honest car dealer, your rights are well-protected under the law. Philtoyota.com hopes you find it helpful!

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