What is Republic Act No. 10642?

The Philippine Lemon Law, also known as RA 10642, was passed in July 2014 to protect buyers of brand-new vehicles in the Philippines.

It allows consumers to return, replace, or ask for a refund for brand-new vehicles that have defects or problems that cannot be fixed after a reasonable number of repair attempts.

In simple terms:
If you buy a brand-new car and it keeps breaking down or has serious issues, even after repairs, you have the right to demand a replacement or refund.

Why Was the Lemon Law Created?

• Before 2014, Filipino car buyers had no specific legal protection if their brand-new car turned out to be defective.

• Some buyers were stuck with "lemons" — cars that were unsafe, unreliable, or full of defects.

• The Lemon Law gives consumers a clear process to protect their investment and forces manufacturers to ensure good product quality.

What Vehicles Are Covered?

• Only brand-new motor vehicles are covered.

• Vehicles bought from authorized dealers or distributors.

• Both private use (like family cars) and light commercial vehicles (like small delivery vans) are included.
  
  

NOT covered:

• Second-hand vehicles

• Repossessed vehicles

• Refurbished or rebuilt cars

• Vehicles used for racing or off-road competitions

• Heavy trucks and big buses

What Qualifies a Vehicle as a "Lemon"?

A vehicle is considered a "lemon" if:

1. It has a defect that affects its safety, use, or value.

2. The defect was reported within 12 months from the date of original delivery OR within the first 20,000 kilometers of operation — whichever comes first.

3. The manufacturer or dealer was given four (4) repair attempts but failed to fix the defect.

Examples of major defects:

• Brake system problems

• Engine stalling issues

• Faulty airbags

• Transmission failures

• Steering system problems

Consumer Rights Under the Lemon Law

If your brand-new vehicle has serious defects, you have the right to:

1. Request a Final Attempt to Repair:

   • Notify the manufacturer or dealer in writing.

   • They are given a final chance to fix the issue within 15 calendar days.

2. File a Complaint: If the defect is still not fixed, you can file a case with the Department of Trade and Industry (DTI).

3. Get a Refund or Replacement: If the DTI finds that the vehicle is indeed defective, you can choose to:

   • • Get a full refund (minus a small amount for mileage used).

     • Have the car replaced with a new one of the same model and specifications.

The refund includes the car’s purchase price, taxes, registration fees, and finance charges (if any).

Penalties for Violating the Lemon Law

• Manufacturers and dealers who refuse to comply can face fines and business penalties imposed by the DTI.

• Repeated violations can lead to the revocation of business permits.

Agencies Involved

Agency Responsibility

Department of Trade and Industry (DTI) Main agency to handle complaints, investigations, and enforcement of the Lemon Law.

LTO (Land Transportation Office) Ensures proper registration and documentation of brand-new vehicles.

Important Details for Car Buyers

• Always keep all documents: official receipt, sales invoice, warranty booklet, maintenance records, and service reports.

• Report the defect early — within 12 months or before hitting 20,000 km.

• Give the dealer reasonable chances to fix the car.

• File a written request for final repair attempt if the problem continues.

• If filing a case, prepare evidence like photos, videos, mechanic reports, and written complaints.

Conclusion

• The Philippine Lemon Law (RA 10642) empowers you to demand quality when buying a brand-new car.

• It makes sure manufacturers and dealers take responsibility for delivering safe, working vehicles to Filipinos.

• Thanks to this law, you are protected from being stuck with an expensive but defective car!

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