LTO clears timeline for a brand new motor vehicle’s OR, CR, License Plate release


Ah, yes, the baffling case of OR, CR, and license plate releases. The LTO has been aware of this hounding and pressing issue for years on end, and in what seems to be an attempt to set the public at ease, they have released a memo that car and motorcycle dealerships must adhere to for releasing the said documents and plates.

LTO mandates car and MC dealerships to display the processing time of vehicle registration

Lto Brand New Or Cr License Plate Release Inline 03 Min

Photo: LTO

In the agency’s memorandum, all motor vehicle dealerships are required to post the registration timelines prominently within their facilities for the public to see. It will likewise serve as a reminder for everyone in the dealership that strict compliance with the timelines is expected, and should any buyer come up to complain about delays, they will be held liable and charged hefty fines.

A 5-step process has been set out from the time that a vehicle is purchased up to the time that the OR/CR and the license plate are ready to be picked up from the dealership. Let’s have a look at them below.

Motor vehicle registration timeline

Lto Brand New Or Cr License Plate Release Inline 01 Min

Photo: LTO

For a non-motorcycle purchase, a 7-11 day processing window is given for dealerships to finish the registration process.

After the purchase date (Day 1), the dealership has 2-3 days to complete the processing of requirements needed by the LTO to register the vehicle. After 1-2 days have been allotted to process the sales reporting and the initial registration of the brand-new unit. The next 2-3 days will be for the LTO to register the information in its system and release the CR and plate number to the dealership. The buck then goes back to the dealership which has 1-2 days within which to inform and hand over the OR/CR and plate number to the buyer.

If the dealership fails to adhere to the timelines, the number of the offense carries over and moves from paying fines to having the dealership’s blacklisted. For the first offense, the fine is PHP 100,000. The second carries a higher PHP 500,000 penalty plus a suspension of not more than 6 months. The third and final strike warrants the cancellation of their Certificate of Accreditation, and the blacklisting and cancellation of their Certificate of Stock Reported, sales reports, and registration, if the case calls for it.

Motorcycle registration timeline

Lto Brand New Or Cr License Plate Release Inline 02 Min

Photo: LTO

The registration for motorcycles is likewise given the same 5 steps as above. However, MC dealerships have a tighter 3-5 day processing time to adhere to. Motorcycle dealerships also have a different penalty system, which is as follows.

On the first offense, the fine is set at PHP 20,000 with the dealership’s accreditation being deactivated, only to be reinstated after proof of payment. The second offense gets a PHP 30,000 fine and a 1-month suspension to be lifted after giving proof of payment and the service of suspension. PHP 40,000 is set for the 3rd offense along with a 3-month suspension, with its lifting governed by the same guidelines as stated above. The fourth and final offense has a PHP 50,000 fine and comes with the cancellation of the dealership’s Certificate of Accreditation and its blacklisting. Buyers can rest assured, though, that their MC can still be registered by the LTO should this befall their dealership.

LTO Chief Assistant Secretary JayArt Tugade has been relentless since taking the helm of the agency. Beginning with his campaign to eradicate fixers and corrupt employees inside his agency, he continues the push to institute reforms to improve how they serve the public through streamlining processes, particularly motor vehicle registration.

“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,” Tugade explains.

The new memorandum also directs all LTO regional officials through their Regional Accreditation Committees (RACs) to monitor strict compliance by submitting a monthly report on the number of issued plates per dealership, including those that may be found violating this memorandum that will cause the issuance of Show Cause Orders to Tugade’s office.

“We hope that these reforms will result to faster processes and ultimately, better customer service,” he later added.

We hope so too, Chief Tugade. We truly hope so, too.

Mikko Juangco
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