The Land Transportation Office (LTO) has implored motor vehicle dealers to openly display the necessary processing time for car registration so that their customers can have knowledge of how long it would take and are sure it will be finished on schedule.
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LTO Assistant Secretary Jose Arturo Tugade declared that vehicle dealers must prominently display the processing time for registration, from initial filing to receipt of Original Registration/Certificate (OR/CR) and license plate release. This will ensure a straightforward and hassle-free car-buying experience for consumers.
5 Steps to Register New Vehicles in LTO for Car Dealers
The memo outlined five steps for the registration of new vehicles, each with an estimated processing timeframe between seven to eleven days.
Step 1: The very first step in registering a vehicle is to purchase it (on day one).
Step 2: Following this, the car dealership will handle your requirements and paperwork in two to three days.
Step 3: Submitting the sale and initial registration documentation to the LTO within one or two days.
Step 4: Following completion of the preceding three steps, LTO will then proceed to register the motor vehicle and accordingly release the OR/CR along with a plate number to your chosen dealer within two-to-three days.
Step 5: Lastly, the dealer will help the new vehicle owner to obtain their OR/CR and license plate within one or two days.
LTO to Submit Monthly Report
In order to guarantee compliance with the memorandum, all Local Transport Officers (LTO) are obligated to submit a monthly report detailing how many license plates each dealership had issued, including any infractions of this regulation. This was executed through their respective Regional Accreditation Committees (RACs).
“The display of vehicle registration processing time in their own showrooms will keep dealers on their toes to assure that they comply, and likewise allow the public that they have the power to report to the government any delays because as paying customers, they deserve to be served better,” said LTO Assistant Secretary Tugade.
Recently, the Land Transportation Office (LTO) issued a memorandum on January 6th, 2023 titled “Processing time from date of sale to release of plates and mandatory posting of the same at the showroom area of dealers,” which outlines how quickly orders must be fulfilled.
Below is the post from LTO on their official Facebook Page about this announcement:
Fines for Car Dealers Delaying Vehicle Registration
Dealers who disregard the rules will be met with show-cause orders and face hefty fines.
First Offense: PHP 100,000 Fine
Motor vehicle dealers must adhere to this memorandum or risk facing sanctions in accordance with Section 9 of LTO Administrative Order No. AVT-2014-023, such as a PHP100,000 fine for the first offense.
Second Offense: PHP 500,000 Fine
The 2nd time/2nd offense will be penalized with a hefty PHP500,000 fine and no more than 6 months of suspension.
Third Offense: Blacklist/Cancellation of Accreditation
As a third and final violation of the memorandum, accreditation certificates will be revoked, blacklisted names placed in circulation, and registrations for stock reports or sales reports may also receive cancellation “if necessary”.
Fines for Motorcycle Dealers Delaying Motorcycle Registration
In contrast, motorcycle dealers face fines as per Memorandum Circular 2021-2294 if they do not register a bike within 3-5 days.
Motorcycle dealers face potential disciplinary action if they neglect to comply with the fifth step of their vehicles’ registration process.
Penalties for Non-Compliance
First Offense: PHP 20,000
The accreditation shall be deactivated from the LTO IT System when the Resolution becomes final and executory. The deactivation shall only be lifted upon proof of payment.
Second Offense: PHP 30,000
Plus Suspension of one (1) month. The accreditation shall be deactivated from the LTO IT System when the Resolution becomes final and executory. The deactivation shall only be lifted upon proof of payment and service of Suspension.
Third Offense: PHP 40,000
Plus Suspension of three (3) months. The accreditation shall be deactivated from the LTO IT System when the Resolution becomes final and executory. The deactivation shall only be lifted upon proof of payment and service of Suspension.
Fourth Offense: PHP 50,000
Cancellation of Certificate of Accreditation and Blacklisting of the dealer upon finality of the Resolution. However, the units sold prior to cancellation of the Certificate of Acreditation can still be registered by the LTO.
Summary
Car dealers must adhere strictly to the five-step process outlined in the memorandum issued by LTO or face hefty fines of up to PHP 500,000 and suspension of their accreditation.
With this regulation in place, customers can be assured that the process for buying cars is well-managed and that they can expect to receive their OR/CR and license plates within seven days from the date of purchase.
On another note, this is also a reminder for future car owners to make sure they are aware of when the vehicles in the showrooms will be ready for release. Better not to purchase cars that do not have the registration processing time posted in their showroom areas.
It is essential that car and motorcycle dealers observe the regulations set forth by LTO to ensure smoother transactions for customers. With this memorandum in place, customers can be assured that their rights as consumers will be upheld and that timely vehicle registration processing will be guaranteed.