Lemon Law

Dear Atty. Peachy,

In August 2024, I purchased a brand-new compact SUV from a dealership in Quezon City, excited for the adventures ahead with my family. Initially, everything seemed perfect. However, my joy turned to dismay just a month later when I began noticing serious problems. The engine would occasionally refuse to start, the brakes felt spongy and most worryingly, the airbag warning light came on, raising concerns about our safety.

Thinking these were just minor teething issues, I returned to the dealership, where they performed several repairs. Unfortunately, no matter how many times I brought the car in, the same issues persisted. Over the next few months, I spent countless hours at the service center, only to leave with a vehicle that was still imperfect.

By June, I was at my wit’s end. The repeated visits and lack of resolution had not only cost me time but also strained my trust in the dealership. I had already invested a significant amount into this car, and I felt I deserved to drive a vehicle that was both safe and reliable.

Armed with all necessary documentation, I finally decided to send a formal demand letter to the dealership, requesting a replacement vehicle or a refund. To my dismay, the dealership responded dismissively, claiming they had fixed the issues and insinuating that I was being overly dramatic. This left me feeling helpless and frustrated. What are my legal rights under the law in this situation?

Paul

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Dear Paul,

Thank you for reaching out and sharing your experience with your vehicle. I understand how frustrating it can be to deal with persistent issues after purchasing a new car. Your situation is a classic example of a potential claim under the Philippine Lemon Law, and I am here to help clarify your options.

The Philippine Lemon Law protects consumers who purchase defective vehicles. Under this law, if a new vehicle has defects that substantially impair its use, safety, or value and these defects cannot be repaired after a reasonable number of attempts, you are entitled to a replacement vehicle or a full refund. In addition to the Lemon Law, provisions under the Consumer Act of the Philippines (Republic Act 7394) also safeguard consumer rights. This law mandates that businesses must sell products that are safe, durable, and free from defects. If the defects in your SUV fall under these criteria, it strengthens your case.

Since you have already sent a formal demand letter to the dealership, ensure it clearly states your rights under the Lemon Law. You may send a subsequent letter, including a timeline of events and emphasize the continued nature of the defects.

If the dealership continues to dismiss your claims, you may escalate the issue to the Department of Trade and Industry by filing a complaint.

Atty. Peachy Selda-Gregorio