Having a lemon unit can be a great burden as it requires to have regular servicing due to some recurring issues. Not only does it add to your monthly expenses but also requires your time and effort. So, what should you do if your brand-new car is found to be defective in the first place? Fortunately, our government lawmakers approved a law that protects consumers in situations like yours. The law is known as <em>"The Philippine Lemon Law"</em>.

<h2 class="h2-title">The Philippine Lemon Law</h2>
<p>The <a class="a-link" target="_blank" href="https://lawphil.net/statutes/repacts/ra2014/ra_10642_2014.html">RA 10642</a> also known as <em>“The Philippine Lemon Law”</em> was enacted in 2014 to promote full protection to the rights of consumers in the sale of motor vehicles against business and trade practices which are deceptive, unfair, or otherwise inimical to consumers and the public interest.</p>
<p>This law basically gives full protection to motor vehicle buyers/owners in case the new units they bought from the authorized dealers are deemed defective. The vehicle types included are hatchbacks, sedans, crossovers, and even huge SUVs, among other passenger vehicles. It's important to note, however, that this law does not yet apply to motorbikes, buses, delivery vehicles, or heavy equipment. </p>
<p>This law only covers brand new vehicles that are bought within twelve (12) months or twenty thousand (20,000) kilometers in operation after the delivery of the vehicle, whichever comes first. This includes nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications except for the following causes:</p>
<ul>
  <li>Noncompliance by the consumer of the obligations under the warranty;</li>
  <li>Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer;</li>
  <li>Abuse or neglect of the brand new motor vehicle; and</li>
  <li>Damage to the vehicle due to accident or force majeure.</li>
</ul>

<h2 class="h2-title">Things that you should do</h2>
<p>The following are the steps that you should take when your brand-new vehicle is found to be defective under the lemon law:</p>
<ol>
  <li><p><strong>Repair Attempts</strong>. You must first bring your vehicle to the manufacturer, distributor, dealer, or retailer, to give them an opportunity to fix the vehicle to be in conformity with the vehicle’s manufacturer or distributor’s standards or specifications. Be sure to bring it immediately after the discovery of defectiveness.</p>
    <p>If the vehicle is still not fixed after four (4) attempts to bring it into compliance with the vehicle's manufacturer or distributor's standards or specifications, you have the option of exercising your Lemon Law rights. Take note that these rights can only be invoked within twelve (12) months after the purchase or twenty thousand (20,000) kilometers of operation of the vehicles.</p>
  </li>
  <li><p><strong>Notice of Availment of Lemon Law Rights</strong>. Once you’re qualified for lemon law rights, you must first notify in writing the manufacturer, distributor, authorized dealer or retailer of the unresolved complaint, and your intention to invoke your rights under RA 10642 within the Lemon Law rights period.</p></li>
  <li><p><strong>Availment of Lemon Law Rights</strong>. After filing the notice of availment, you should need to bring the vehicle to the manufacturer, distributor, authorized dealer, or retailer from where the vehicle was purchased for a final attempt to address your complaint to your satisfaction.</p></li>
  <li><p><strong>File a complaint to the DTI</strong>. If the vehicle is deemed to be defective or the nonconformity remains unresolved despite the fixing efforts, you may file a complaint before the Department of Trade and Industry (DTI). But, if the vehicle is not returned for repair within 30 days from the date of notice of release following the final repair attempt, the repair is deemed successful.</p>
    <p>Take note that you are also entitled to a reasonable daily transportation allowance, to compensate for the non-usage of the vehicle while under repair and during the period you exercise your Lemon Law rights. This amount will cover the transportation from your residence to your regular workplace or destination and vice versa, as evidenced by official receipt, or in such amount to be agreed upon by the parties, or a service vehicle at the option of the manufacturer, distributor, authorized dealer, or retailer.</p>
  </li>
  <li><p><strong>Wait for the DTI to issue a decision</strong>. The DTI has sole and exclusive jurisdiction over the case. If the DTI finds nonconformity, it may order the manufacturer, distributor, authorized dealer, or retailer to provide you with one of the following remedies:</p>
    <ul>
      <li>replace the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values, subject to availability; or,</li>
      <li>accept the return of the motor vehicle and pay the consumer the purchase price plus the collateral charges.</li>
    </ul>
  </li>
  <li><p><strong>Exercise your remedy</strong>. Once the DTI issues an order, you shall then exercise your rights with the aforementioned options. You can alternatively choose to buy another vehicle from the same manufacturer, distributor, authorized dealer, or retailer with a greater value and specs, but you will have to pay the difference in price. However, if the DTI does not find nonconformity with the motor vehicle, you must reimburse the manufacturer, distributor, authorized dealer, or retailer for the costs incurred in confirming your complaint.</p></li>
</ol>

<p>Have you recently bought your first brand-new car? Perhaps no one could ever explain your excitement and eagerness when you take it for a drive around your neighborhood on the first day after picking it up from the car dealership. Furthermore, it’s a thrilling experience when you get behind the wheel of a new car and park it in your garage.  How could anyone not be pleased with that?</p>
<p>After driving it for a week, you thought everything was fine with your car; of course, it's brand new! Unfortunately, after a few more weeks, you notice that your car is no longer as efficient as it used to be. Perhaps the car you consider your buddy becomes a problem due to some issues that were not discovered before purchasing it.  They usually label it as a <em>“lemon car”</em>.</p>

What should you do if your brand new car is found to be defective?

So, how would you know if the car you’re buying isn’t stolen? Here are some important tips:

<h2 class="h2-title">1. Check the Vehicle Identification Number (VIN)’s authenticity</h2>

<p>The Vehicle Identification Number or VIN is like a fingerprint of a vehicle. Every manufactured vehicle has its own unique code which represents the VIN. The VIN can be used to track recalls, registrations, warranty claims, thefts, and insurance coverage.  It is composed of 17 characters (digits and capital letters) that can be found in some places in your car and may vary depending on the auto manufacturer. The most common places you can locate the car’s VIN are on the dashboard, engine block, car frame, under the hood, rear-wheel well, and the driver’s door pillar.</p>

<p>Why VIN is so important when buying a used car? Whenever something happens to a vehicle, be it an accident, oil change, overhaul, or being carnapped, the event is recorded with the vehicle’s VIN. This tracks all the history of events of a specific vehicle. So, when you’re going to buy a used car, be sure to check the VIN.</p>

<p>But how would you know if the VIN is authentic? Make sure that the VIN’s letters are smooth and clearly written. Any signs of tampering such as scratches, strange marks, or cover-ups, are suspicious. If you think that the vehicle is indeed carnapped, that’s the time that you must further verify it by doing the following steps.</p>




<h2 class="h2-title">2. Verify using the LTO’s Mobile Query Facility</h2>

<p>
The Land Transportation Office (LTO) adapts to the advancement of new technologies using a mobile query facility that allows the public to inquire about the status of a specific vehicle by texting <strong>LTO VEHICLE &lt;space&gt; &lt;plate number&gt; to 2600</strong>. After a few minutes, you will receive a text reply containing the information about the vehicle’s status in the following format/sequence: 
</p>
<p><em>Plate number/Make/Model/Year of Manufacturing/Color/Date Last Registered in LTO/LTO Apprehension/Records/LTO Alarm.</em></p>

The system gives you a convenient way of accessing the status of the vehicle. The “LTO Alarm” on the text message gives you an idea if a car is stolen or not. If it says that it “has no alarm”, then you have a valid reference that the car that you’re going to buy is legit. Once the car owner reports to the LTO that his/her car is stolen, this will update the status of a vehicle bearing plate number under the LTO alarm.

<h2 class="h2-title">3. Contact the Highway Patrol Group (HPG)</h2>

<p>Another way that you can reliably ask for more information about the status of a specific vehicle is by contacting the <strong>Highway Patrol Group (HPG)</strong>. HPG’s main mandate is to <em>“ensure safer highways for all motorists and road users”</em>. While ensuring traffic safety, they also have a complete record of all traffic events including accidents, criminal involvement, and court cases. You can ask for a vehicle clearance certificate from them if the car you are buying has no record of these events. You can contact them via the following:</p>

<ul style="list-style-type: circle;">
  <li><strong>Facebook Page</strong>: https://www.facebook.com/Headquarters-Highway-Patrol-Group-800365920063503</li>
  <li><strong>Email</strong>: headquartershpg@yahoo.com</li>
  <li><strong>Landline</strong>:  (632) 724-8869</li>
<ul>

<h2 class="h2-title">4. What should you do if the car you’re dealing with is stolen?</h2>

You have the option of reporting it to the police or not. But take responsibility for the other people that may become a victim if you’re just leaving it to you. Who knows, maybe a member of your family or a relative of yours become a victim. So, it’s better to report it to the police as much as possible so that they can find an easy way to search for the stolen vehicle.


<p>
During the pandemic, there has been a shift in the preferences of car buyers to buy second-hand cars over new units to save money especially if you have a tight budget for your next dream car. Conversely, the emerging pre-owned auto market has boomed with the rise of classified automotive websites like <a class="a-link" target="_blank" href="https://philvex.com">PhilVex</a>. With these platforms, you can easily find your next dream car instantly. But don’t ignore the fact that there are risks associated with buying second-hand low-priced cars. Hustlers and carnappers would love making deals with those people leaning toward low-cost transactions.
</p>

Are you concerned that the car you're buying is stolen? Here’s how you can verify

Here are a few pro tips on how to sell your car in the Philippines:


<h2 class="h2-title">1. Prepare the necessary documents</h2>

One of the top priorities a potential buyer needs is the complete and valid papers of your vehicle. This includes:

<ul>
  <li>Official Receipt of Registration (OR)</li>
 <li>Original Copy of the Certificate of Registration (CR)</li>
 <li>Absolute Deed of Sale <em style="font-size: 14px;">(will be prepared once the transaction is closed)</em></li>
 <li>Notarized Transfer of Title</li>
 <li>Original LTO Plate Numbers</li>
 <li>Motor Vehicle Clearance Certificate from HPG</li>
 <li>Endorsement to the insurance company for the new owner</li>
 <li>Record of and/or receipts for repairs and maintenance, and accessories</li>
</ul>
	
Each document is vital. No matter how good your car condition is, if there’s a problem with any of the documents, you may find a hard time selling it. 


<h2 class="h2-title">2. Get the car inspected</h2>

<p>Make one last maintenance to your car ahead of selling it. Potential buyers may want to test drive a vehicle to check if it is working fine before making a final purchase decision. Take your car to the auto shop and get it thoroughly examined to make sure it is free from hidden defects. That way, you can fix the problems that might otherwise push you to sell the car at a lower price due to these defects. </p>

<p>Once your car is inspected, you can ask the mechanic about its market value before and after getting fixed. This will give you an initial idea of pricing your vehicle for the market.</p>


<h2 class="h2-title">3. Spend time researching the car’s price</h2>

It is difficult on your part to decide the price of a used car especially when it is your first time. Sometimes, the initial idea of your auto mechanic is not enough. Spend some time researching the car’s market value. You can visit various online platforms, such as <a class="a-link" href="https://philvex.com" target="_blank">PhilVex</a> and Carousell, and get the average price of the same unit that you are selling. Some of the important parameters that are usually considered when estimating the car’s value would include model year, mileage, fuel type, transmission, and accident history.


<h2 class="h2-title">4. Decide How to Sell</h2>

There are plenty of ways on how to sell your used car. You can sell it directly to a dealer, a private buyer, or through an online classified website. 

<p style="font-size: 16px; font-weight: bold; opacity: 0.8">Selling through a dealer</p>

You must know when you decide to sell it to a car dealer, expect that its price is lower than on a private and classified website. Of course, they need to earn on their business and the benefit of selling your car through them is less hassle and is easier than on a private and classified website. So, it’s up to you.

<p style="font-size: 16px; font-weight: bold; opacity: 0.8">Selling through classified websites</p>

You can opt for an online trading platform for selling your car. Online trading portals are emerging as a preferred destination for many car sellers. It provides an end-to-end solution for car buying and selling needs. <a class="a-link" href="https://philvex.com" target="_blank">PhilVex</a> is one such online platform that offers a great experience to the users. It uses the latest technology, such as <a class="a-link" target="_blank" href="https://philvex.com/search-on-map?nearby=true">maps explorer</a>, to easily find the right car for the prospective buyer base on location. One important thing to know is that all PhilVex’s features are FREE including unlimited listings, SEO, basic CRM, email alerts and notifications from your prospective buyer, and profile visibility to sellers’ map locator.


<h2 class="h2-title">5. Prepare for your ad</h2>

Ok, you have decided to sell your car through classified websites. Take some time to craft your ad with a compelling description of the car that you want to sell. But there are some important things to do when preparing your ad:

<ul>
<li><strong style="opacity: 0.9;">Take clear, high-definition photos</strong>. Good visuals are bound to get more attention and attract genuine buyers. So, get a good photo op with your HD camera. Try to get a photo of your car from several angles that focus on the front and rear view with the trunk/hood open and close; side-view with the doors open and close; close-up of the engine; tires and wheels; front and back seats; and floor for all seats. </li>

<li><strong style="opacity: 0.9;">Be honest about your vehicle</strong>. It is important to declare an honest history of your vehicle such as having been flooded and having experienced a collision. If you’re caught in a lie about your vehicle, your credibility with buyers may humper will not get any chance of selling other vehicles. In some cases, it could cause a sale to be declared null and void, forcing you to return the money and take your car back.</li>
</ul>


<h2 class="h2-title">6. Viewings and negotiation</h2>

Ok, you are done placing your ad through classified websites. Expect potential buyers to contact you soon asking some questions about your vehicle, others wanted to see the actual vehicle. 
Some buyers may ask you to have your car inspected by a mechanic or by someone knowledgeable to make sure that they are not dealing with a car with hidden defects. Other buyers would also like to test drive your car to get the feel of your vehicle. In most cases, potential buyers may ask for a discount after scrutinizing, and if they found discrepancies in your vehicle.


<h2 class="h2-title">7. Closing the deal</h2>

<p>Alright, you have finally closed the deal with a particular buyer. The most important thing to do that you should never forget is “Never release your car unless you have received the money”. There are many cases of car scams. Try reading this <a class="a-link" target="_blank" href="https://philippinevehiclesexchange.com/blog/how-to-spot-a-scam-when-buying-and-selling-cars-online">article</a> to give you an idea of how to avoid being a victim of a car scam.</p>

<p>But when is the point of receiving the money? If paying by check, make sure you wait for it to be cleared on your account. At that point, you are sure that the amount is readily available to be used or to be withdrawn. You can also ask for a manager’s check, this guarantees as good as cash. If the buyer decides to pay you cash, make sure that you count it one by one. </p>
<p>Once the consideration is cleared, you can now draft a “Deed of Sale” and issue a receipt. Make full disclosure regarding insurance, warranty, and maintenance with the buyer. This will help ensure that the buyer understands the status of your vehicle and for you to avoid post-sale obligations.</p>


<p>Now, you have decided of letting go of your used car after planning it for a long time. Maybe you have consulted your friends and family about your decision, considering that you have invested so much in it, both financially and emotionally. </p>

<p>If this is your first time selling a car, there are many things to do before offering it to the public. It may seem a tedious task to you but once you know the process, you will be ready to attract buyers and will receive a most profitable result. Moreover, this will also save you from a post-sale obligation.</p>

What should you do before selling your car?

<h2 class="h2-title">Common red flags when buying a car</h2>

<p>Keep these warning signs in mind when purchasing a car online:</p>

<ul class="ul-margin1">
   <li><strong>Fake listings on classified websites</strong>. Classified websites can be a potential medium for online scamming. They tend to post a fake listing by copying the same information from a legitimate one of the same website or others. They usually post these listings at very attractive prices within a limited timeframe, thus, attracting more victims in a hurry.</li>

  <li><strong>The seller’s and car’s identities don’t match</strong>. Always ask the seller for proof of identity. This includes government-issued IDs like SSS/UMID and driver’s license. Make a full check if the name and address match on the vehicle’s registration form. Make sure that the vehicle registration form is original and not a copy, then check for evidence of tampering.</li>

  <li><strong>The seller insists on wire transfer payment in advance</strong>. Online scammers usually insist you make a payment in advance using wire transfer services, like MoneyGram or Western Union, before shipping the car. Other scammers nowadays use GCash or account deposit as a medium of fund transfer. Legitimate car sellers don’t use these modes of payment.</li>

  <li><strong>The seller avoids pre-purchase inspection</strong>. A pre-purchase inspection is a good way to determine hidden defects of the car you want to buy. Though it costs you to pay for an auto mechanic, it saves you a lot from uncovering defects that you may have missed before pushing the deal.</li>

</ul>

<h2 class="h2-title" style="margin-top: 3rem;">Common red flags when selling a car</h2>

<p>Watch out for these common warning signs when selling cars online:</p>

<ul class="ul-margin1">
   <li><strong>Fraudulent fake deposit</strong>. A scammer may ask for your bank account number and name to send money to your account. After a few hours, he will send you a fake validated bank deposit slip claiming that he had made a payment for the car purchased. Don’t just rely on the validated deposit slip, make some effort to check your balance online or call your bank to verify the deposit of the same amount.</li>

<li><strong>Promise of future payment</strong>. A dishonest buyer may promise you a staggered payment arrangement or wait until he gets the next paycheck before paying you. This could be a sign that the buyer will not pay after he got the car.</li>

</ul>

<p>As the internet users grow fast, the online automotive marketplace also has tremendously grown fast as it is easier to buy and sell vehicles on the secondary market. But don’t ignore the fact that scammers are also moving to the internet.</p>

<p>Whether you are on the market for brand-new or slightly used vehicles, you always must safeguard yourself against the potential risk of losing your hard-earned money to these online scammers. Spend some time researching so that you can avoid being a victim of a car scam.</p>

Avoid Car Scams Posts

What should you do if your brand new car is found to be defective?

Are you concerned that the car you're buying is stolen? Here’s how you can verify

What should you do before selling your car?

How to spot a scam when buying and selling cars online?