The Land Transportation Office (LTO) has urged motor vehicle dealerships to openly display the processing time for car registrations, so that customers know how long it will take and can be sure it will be completed on time.
LTO Assistant Secretary Jose Arturo Tugade has ordered vehicle dealers to prominently display the processing time for registration, from initial filing to receipt of Original Registration/Certificate (OR/CR) and license plate release. Consumers will have a hassle-free and straightforward experience when purchasing a car.
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5 Steps to Register New Vehicles in LTO for Car Dealers
There are five steps for registering new vehicles, each with an estimated processing time of seven to eleven days.
Step 1: Registering a vehicle begins with its purchase (on day one).
Step 2: Your requirements and paperwork will be handled within two to three days by the dealership.
Step 3: Immediately submitting the sale and initial registration documentation to the LTO.
Step 4: Once the preceding three steps have been completed, the LTO will register the vehicle and release the OR/CR and plate number within two-to-three days.
Step 5: The dealer will assist the new vehicle owner in obtaining their OR/CR and license plate within a couple of days after the purchase.
LTO to Submit Monthly Report
Local Transport Officers (LTO) must submit a monthly report detailing how many license plates each dealership issued, including any infractions of this regulation, in order to ensure compliance with the memorandum. Their Regional Accreditation Committees (RACs) executed this process.
As a paying customer, they deserve better service, so by displaying vehicle registration processing times in their showrooms, dealers will be on their toes to ensure compliance. Additionally, the public will be able to report delays to the government because as paying customers, they deserve better service,” said LTO Assistant Secretary Tugade.
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 same at dealer showrooms,” outlining how quickly orders must be fulfilled.
Here is the announcement on LTO’s official Facebook page:
Fines for Car Dealers Delaying Vehicle Registration
Fines and show-cause orders will be issued to dealers who disregard the rules.
First Offense: PHP 100,000 Fine
The LTO Administrative Order No. 9 stipulates that motor vehicle dealers must adhere to this memorandum or face sanctions. First-time offenders may be fined PHP100,000 under AVT-2014-023.
Second Offense: PHP 500,000 Fine
Second time offenders will be fined PHP500,000 and suspended for no more than six months.
Third Offense: Blacklist/Cancellation of Accreditation
A third and final violation will result in accreditation certificates being revoked, blacklisted names being circulated, and stock report or sales report registrations being canceled “if necessary ”.
Fines for Motorcycle Dealers Delaying Motorcycle Registration
As per Memorandum Circular 2021-2294, motorcycle dealers who fail to register a bike within 3-5 days may be fined.
The fifth step in the registration process for motorcycles must be completed by motorcycle dealers to avoid disciplinary action.
Non-compliance penalties
First Offense: PHP 20,000
As soon as the Resolution becomes final and executory, the accreditation shall be deactivated from the LTO IT System. Upon proof of payment, the deactivation will be lifted.
Second Offense: PHP 30,000
Plus one (1) month’s suspension. Upon finalization and execution of the Resolution, the accreditation shall be deactivated from the LTO IT System. Deactivation will only be lifted upon proof of payment and service of suspension.
Third Offense: PHP 40,000
Suspension for three (3) months plus. LTO shall deactivate the accreditation once the Resolution becomes final and executory. Upon proof of payment and service of suspension, the deactivation will be lifted.
Fourth Offense: PHP 50,000
Upon finalization of the Resolution, the dealer’s certificate of accreditation will be revoked and blacklisted. In spite of this, the LTO is still able to register units that were sold before the Certificate of Accreditation was revoked.
Conclusion
Dealers are required to strictly follow the five-step process outlined in the LTO memorandum or face hefty fines of up to PHP 500,000.
Taking advantage of this regulation, customers can rest assured that the car buying process is well-managed and that they will receive their OR/CR and license plates within seven days of making the purchase.
Additionally, this is a reminder for future car owners to make sure they know when the vehicles in the showrooms will be ready. You should not purchase a car that does not display the registration processing time in its showroom.
In order to ensure smoother transactions for customers, it is crucial that car and motorcycle dealers follow LTO regulations. As a result of this memorandum, consumers can be assured that their rights as consumers will be upheld and that vehicle registrations will be processed in a timely manner.
