You bought your dream car—brand new, fresh from the showroom.
But within weeks, it’s back at the dealer.
Strange noises.
Faulty brakes.
Blinking lights.
If your “new” car feels broken from the start, the Lemon Law protects you.
Officially known as Republic Act No. 10642, the Lemon Law is a consumer protection law.
It’s meant for people who buy brand-new cars that turn out to be defective.
There’s no extra fee to access this law.
But there are specific rules on how and when to use it.
Whether you’re a first-time car buyer or just unlucky with your latest ride, this is for you.
What Is the Lemon Law and Who Is It For?
The Lemon Law protects buyers of brand-new motor vehicles.
You must have bought your vehicle from an authorized dealer in the country.
This law applies if your car develops a serious defect that:
- Affects its use,
- Lowers its value, or
- Risks your safety.
You can use the Lemon Law if the problem shows up within 12 months after you got the car or within the first 20,000 kilometers—whichever comes first.
If you’ve had the same issue fixed at least four times with no success, you may be entitled to a replacement vehicle or a full refund.
What Makes a Vehicle a “Lemon”?
Not every defective car is a lemon.
To qualify under the law, your car must have a “nonconformity”—a defect that makes the vehicle fall short of the manufacturer’s promises.
Examples include:
- Engine failure
- Transmission problems
- Faulty brakes or steering
- Electrical malfunctions
- Defective airbags
The defect must be substantial, not minor.
Also, the defect should still be present after four separate repair attempts.
Or, your car has been in the repair shop for a total of 30 days and is still not fixed.
Who and What Are Not Covered?
Let’s be clear—this law isn’t for everyone or every vehicle.
You’re not covered if:
- You bought a second-hand or used car
- You made modifications to the vehicle
- The damage came from accidents, neglect, or abuse
- You drive a motorcycle, delivery truck, or construction vehicle
Only cars bought brand-new and used for private or personal use are protected.
So, if your car is for business or public transportation, it might not qualify.
What Should You Do If Your Car Has a Defect?
Step one: Write it down.
As soon as you notice a problem, tell your dealer or manufacturer in writing.
Don’t rely on phone calls or casual visits.
Keep records of everything—
repair receipts, complaint letters, photos, and dates.
This paper trail can make or break your case.
Your dealer must then try to fix the problem—up to four times.
Each attempt must be for the same defect.
If the defect is still there after those four tries, you can move to the next step.
How to Officially File a Complaint
If nothing works after those four repair attempts, it’s time to file a formal complaint.
You’ll do this with the Department of Trade and Industry (DTI).
Here’s how:
- Gather your documents – Include repair records, your written complaints, and receipts.
- Submit your complaint – File it at your nearest DTI office.
- Attend mediation or arbitration – The DTI will invite both you and the dealer to settle the issue.
- Wait for a decision – If the case is in your favor, you can choose to:
- Get a full refund, including fees and taxes
- Or receive a replacement vehicle
If the DTI rules against you, you may need to pay the dealer back for their costs.
What Help Can You Get While Waiting?
Here’s some good news:
While your vehicle is under repair or investigation, the law gives you a reasonable daily transportation allowance.
This is to help cover your travel costs while you wait for your car to be fixed, replaced, or refunded.
The amount depends on what’s considered fair, but it’s better than being left with nothing.
Tips to Make the Lemon Law Work for You
Here are four smart tips to help you use the Lemon Law successfully:
- Keep a journal – Note each problem, when it happened, and what was done.
- Ask for everything in writing – Confirm conversations with emails or letters.
- Don’t delay – Act as soon as you see a major problem.
- Stay calm but firm – You have rights, but patience and paperwork are key.
Common Defects That May Qualify
You might be wondering what kinds of defects count.
Here are examples of common issues that could fall under the Lemon Law:
- Engine: Hard starting, stalling, or overheating
- Transmission: Jerking, slipping, or delayed shifting
- Brakes: Grinding noise, brake fade, or uneven stopping
- Electronics: Dashboard malfunctions or wiring issues
- Air conditioning: Not cooling, leaking, or noisy
If any of these problems persist even after several repairs, you may have a lemon on your hands.
What Happens After the DTI Decision?
If the DTI decides in your favor, you get to choose your remedy.
That means a brand-new vehicle or a refund.
Refunds include:
- Full price of the car
- Registration fees
- Insurance costs
- Any taxes or charges related to the sale
But remember—if the DTI decides against you, the case may stop there unless you go to court.
So make sure your documentation is strong and complete.
Why This Law Matters
Car ownership isn’t cheap.
For many Filipinos, it’s a lifetime investment.
You save up for years, only to be handed a defective car?
Unfair.
That’s why the Lemon Law exists.
It protects honest consumers from ending up with unsafe or unreliable vehicles.
It also reminds manufacturers and dealers that they must stand behind their products.
Frequently Asked Questions
1. Can I use the Lemon Law if I bought the car through a car loan?
Yes. As long as it’s a brand-new vehicle bought through an authorized dealer, financing doesn’t affect your right to file a Lemon Law complaint.
2. What if I missed the 12-month or 20,000-kilometer deadline?
Unfortunately, the Lemon Law won’t apply. You may still pursue claims through other consumer protection laws or civil cases, but it won’t fall under RA 10642.
3. Is it better to go straight to court instead of the DTI?
No. The DTI has exclusive jurisdiction for Lemon Law complaints. You must go through their process before any court action.
4. How long does the DTI process usually take?
It varies, but mediation and arbitration may take a few weeks to several months, depending on the complexity of the case and how cooperative both parties are.
Video: Philippine Lemon Law, Explained (Republic Act No. 10642) | Philkotse Explain Like I’m Five
You bought a brand-new car, confident it would spare you the troubles of second-hand vehicles.
But instead, it left you feeling disappointed and frustrated.
In the Philippines, there’s a law that protects buyers from factory-defective cars, also known as lemons.
This Lemon Law is designed to safeguard consumers like you from vehicles with manufacturing flaws.
Conclusion
Buying a brand-new car should bring you peace of mind.
But if your dream ride turns out to be a nightmare, know this:
You’re not powerless.
The Lemon Law is there to back you up.
Just remember the key points:
- Act within 12 months or 20,000 kilometers
- Keep detailed records
- Notify your dealer in writing
- File a DTI complaint if the problem stays after four fixes
The process takes effort, but it could save you hundreds of thousands of pesos—and your peace of mind.