Car buyers can now return defective vehicles – lawmaker

MANILA, Philippines - Buyers of cars now have the option under the Anti-Lemon Law to return defective vehicles, Cagayan de Oro City Rep. Rufus Rodriguez said yesterday.

Rodriguez is one of the authors of the law, denominated as Republic Act No. 10642 and titled, “An Act Strengthening Consumer Protection in the Purchase of Brand New Motor Vehicles.”

President Aquino signed it last July 15.

“Its signing comes at a very opportune time when the country is experiencing rapid motorization. For the first six months of 2014 alone, vehicle sales soared by 25 percent to 108,957 units, compared to 87,228 sold in the same period last year,” Rodriguez said.

“With the continuing sound economic fundamentals and increasing purchasing power of consumers, vehicle sales growth is expected to further gain momentum,” he said.

He said the law primarily aims to “protect consumers who invested hard-earned money in a brand new vehicle.”

He added that buyers not satisfied with their vehicles should invoke their Lemon Law rights within the prescribed period, which is 12 months from date of delivery or up to 20,000 km of operation, whichever comes first.

He pointed out that the buyer cannot use such rights in cases like non-compliance by the buyer with warranty obligations, unauthorized modifications, abuse or neglect of vehicle and damage due to accident or force majeure.

Rodriguez explained that once the buyer notifies the manufacturer or dealer of his decision to invoke his rights, the latter should repair the defective vehicle to conform to its standards.

“If non-conformity issue remains unresolved, the consumer may file a complaint with the Department of Trade and Industry (DTI), whose decision on the issue is final,” he said.

He said the DTI has the option of ordering the replacement of the defective vehicle or the refund of its purchase price.

For returned vehicles, he said the manufacturer or dealer has the obligation to disclose its return due to a defect when it is up for resale.

Violation of this requirement would result in a P100,000 fine, he said.

“The enactment of the law against defective vehicles will not only enhance consumer protection. It will also help create a stable market for high-quality vehicles leading to safer and more reliable transportation,” he said.

Rodriguez has authored two other bills affecting the auto industry. One calls for the grant of incentives for the importation or manufacture of hybrid, electric vehicles and other alternative-fuel vehicles.

The other bill seeks incentives for auto and auto parts manufacturing.