Buy real property instead of a car, someone said when I consulted him before I bought my first car years back. The value of real property appreciates, as compared to a car which is pure expense from the moment you buy it, through all repairs and maintenance. Worse, it depreciates in value. I decided to buy a car, because I figured it's a necessary tool in my work and business, which would then hopefully allow me to earn enough money to buy a house and lot.

 

In relation to cars, someone previously consulted me about the lemon law because the brand-new car he bought was allegedly defective. Unfortunately, there's no lemon law in the Philippines. Considering that the registered buyer of that car is a corporation, any applicable provisions of the Consumer Act can't be invoked because a "consumer" refers to natural persons, meaning you and me, and excludes juridical persons like corporations.

Anyway, there was an attempt, through Senate Bill No. 2464, to enact a Philippine "Lemon Law." The proposed bill seeks to provide protection for buyers of motor vehicles that turn out to be defective. The Senate Bill sought, as it is now dead, to promote full protection to the rights of consumers in the sale of motor vehicles against sales and trade practices which are deceptive, unfair, or otherwise inimical to consumers and the public interest.

A motor vehicle is considered a lemon if it is unfit, unreliable, or unsafe for ordinary use. Under the lemon law, a car is a lemon if during the Lemon Law Rights period the said car: 1) has been subject to repair three or more times, yet the same non-conformity continues to exist; 2) the non-conformity is a serious safety defect and has been subject to repair one or more times; or 3) is out of service due to repair for a cumulative total of 30 calendar days. The law would ensure that car manufacturers or dealers would fulfill the warranties on their vehicles. If a car turned out to be defective or a lemon, the buyer would be able to get a full refund or a replacement.

Lemon Law Rights period prescribes the time within which a consumer can report any non-conformity or failure to conform to a warranty and a defect or a condition that significantly impairs the use, market value or safety of a motor vehicle. If the non-conformity was not repaired or corrected within the said period, a consumer has the right of: (1) replacement; or (2) return with refund of full purchase price.

Senate Bill No. 2464 was not passed by Congress, by the way.