Friday, February 17, 2017

The LTO's Problems Will Affect Your Car Buying Experience


UPDATE 3: No OR/CR, No Travel Policy here back. Read it here (3/8).

UPDATE 2: The LTO has suspended the No OR/CR, No Travel Policy. Read it here. (2/23).

UPDATE 1: Read our FAQ here (2/19).

Plate or no plate, standardized temporary plate or not, the Land Transportation Office or LTO is planning to implement the penalties prescribed in Republic Act 4136 otherwise known as the Traffic Code of the Philippines, particularly the fine for operating an unregistered vehicle. And while everything seems rosy if you talk to the LTO itself, the situation on the street is very different. In fact, there’s a very big problem. And it will affect your car buying experience; perhaps even more than the impending excise tax increase.

As a bit of a background, RA 4136 provides only a 7-day window for an authorized dealer to register a sold vehicle with the LTO. And while the LTO has updated its procedures to try to reduce that backlog including having dealers do the vehicle registration themselves via a DIY or Do-It-Yourself system, the fact is, the 7-day window is rarely met. In reality, there have been reports of registration delays reaching up to 90 days despite dealers presenting the full set of requirements to the LTO.

The latest memorandum from the LTO penalizes owners P 10,000 for using an unregistered vehicle. And since many car buyers opt for low all-in financing (up to 90 percent in the case of some brands) with downpayments as low as P 5,000, dealers are facing the higher risk of default.

In addition, car buying will change because of the LTO’s inefficiencies. Imagine paying for a brand-new vehicle only to be able to drive it out of the dealership 90 days after, when the OR/CR becomes available. Vehicle sales, be it motorcycle, cars, or commercial vehicles, will potentially grind to a halt.

This raises some questions for the Department of Transportation (DoTr) and its regulating agency, the LTO.

Can the LTO be stopped from implementing penalties prescribed by law if it can be proven that the reason people are in violation of the law is because of the agency’s failure to perform their duties?

Can LTO be made to prevent implementation of the P 10,000 penalty for non-registration if it can be established that the car owner and dealer has complied with all the necessary registration requirements only to have the registration delayed because of the LTO’s ineptitude?

Can a court prevent the LTO from implementing this memorandum on the basis of deprivation of property or economic sabotage or just plain punishing people just because of their failure?

And with the LTO requiring dealers to spend for the temporary license plates, should the LTO shoulder the cost of these temporary plates given they are unable to provide the regular license plates that have been paid for during new vehicle registration? (The penalty for the dealer’s failure to attach the standardized plates are: P 100,000 for the first violation, P 500,000 for the second violation, and revocation of accreditation on the third).

Finally, can the LTO, or any regulating agency for that matter, pass the burden of its work to private persons and penalize those persons if they fail to perform what the agency cannot do?

These questions raise the sad state of the LTO. It must be recalled that the LTO is a regulating body of the Department of Transportation. With that, they have pretty much failed on their reason for existence. They’ve failed to release driver’s licenses, they can’t release new vehicle license plates (let’s not get to the subject of those who paid for the new standard plates to replace their old ones), and now, they can’t even guarantee vehicle registrations on time.

Understandably, the main reason why the LTO is so adamant with implementing the No OR/CR, No Travel policy is peace and order; after all, an unregistered vehicle can be involved in a crime and there’s no way to track it down. It is a law, a basic one, at that. However, the delays involved with the registration can also raise the possibility of corruption within the government agency. Want the OR/CR immediately? There’s an “SOP” for that. Want to get the OR/CR without a full set of documents? There’s an “SOP” for that too.

Why should dealers and the motoring public be obliged to do something the LTO cannot perform, receive no payment for it, and be penalized severely for failing? When dealing with the private sector, failure to deliver a paid service entitles reimbursement. Isn’t it about time government agencies be held to the same standard as well?

54 comments:

  1. Nice article, well said. Additionally, there are more much worse comments to say to LTO, but just my 2 cents......since LTO is really needed (not only as a regulatory body, but also as a milking cow for the government), the management of LTO should be replaced with more competent ones (Do they have delicadeza?). Admit their mistakes. Why not use the old system again (like old plates, old suppliers?). This problem happened, ever since Former Sec Abaya was seated and implemented their "intelligent" ideas (perhaps timing to milk the people for political reasons since election was near, just my speculation since nobody can explain where the money we paid is now.)

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  2. akala ko ba aayusin na yang lto na yan ng bagong administration bakit bulok pa din

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    1. antay ka lang at makakasuhan rin si abaya at malalaman natin saan at sino nag bulsa ng pondo ng nakaraang administration.

      Delete
    2. #changedidnotlast #ningascogonpinoy

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    3. This comment has been removed by the author.

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  3. If that's the case then all motorists should not use their cars since the LTO made them pay for the new plates which the agency cannot provide after all the payments has been collected. Its their negligence and inefficiencies that is passed to the motorists as heavy burdens. Why would you buy a new car then if the said agency can't even provide the registration/plates and any pertinent documents to prove that you have followed their policies and directives. SHAPE UP LTO.... Dont't pass the burden to the motorists as it is your agency who is failing the motoring industry.

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  4. They are the government... only time will tell.

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  5. It is always never the government's fault. Our f*cking government is a cesspool of the worst thieves and incompetents ever assembled. Even if it is their fault, they will make YOU pay for it.

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  6. Can a good lawyer argue that this is an impediment of our Bill of Right, the right to travel?!! haha! I do agree, it has economic consequences on the buyer, the government has no right to stop us from using our vehicles because they do not have the political will to get their licence plate problems fixed.

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  7. This is the best article I've read here so far. Very compelling argument...

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  8. FUCK YOU LTO!! KAHIT KELAN MASYADONG KURAKOT ANG LTO PUTANG INA!!! AYUSIN MUNA ANG SISTEMA NINYO AT PURO KALOKOHAN ANG GINAGAWA NG LTO!!! GAGO!!!

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  9. LTO= kayo ang pina ka bulok at kurap?

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    Replies
    1. Sana pasabugin yung LTO. Mga ugaling terorista din ampf

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  10. Bureau of Customs: Teka teka, kami pa rin ang number 1 ha.

    Bureau of Immigration: Oist, akala nyo lang yun. Tahimik lang kami pero marami pa rin kaming undocumented's at kami pa rin ang numero uno.

    Commision on Audit:Wag na kyo magtalo-talo. Basta quiet na lang kayo sa mga agreements natin para hayahay ang buhay natin.

    Bwahahaha!

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  11. This is a great article. Very good point. I surely can relate coz i bought an a car last feb. 13. Then voila, this memo was set to be implemeted by the lto imbeciles on feb 15. What am i gonna do with the vehicle then? Make it rot in my garage? Ayos ayos din muna ng sistema bago mag implement ng kung ano anong kiyeme. Yung plaka nga ng dati ko sasakyan na nabayadan ko na 2 years ago wala pa. They should upgrade not only their system but also people who is tasked to make the agency function. Bulok.

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  12. Hoy LTO license namin ayusin nyo. Wala pa rin hanggang ngayon. Dating non pro license ko ginawa kong pro. Kinuha nyo yung plastic card ko, pinalit nyo papel na resibo lang. Nabawasan tuloy ID ko. Nahihirapan ako sa paghahanap pa ng ID. Bayad naman namin yung plastic card na gagamitin kaya ayusin nyo yan. Wag nyo idamay yung mga tao sa problema nyo. At nag labas pa kayo ng RA 4136, kasalanan ba ng tao kung mabagal kayo sa pag register ng sasakyan? Next time nyo na gawin dapat yan kapag mabilis na kayo sa pag release. Tang ina nyo

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  13. I already paid for the license plates of my old car twice to LTO. And for more than 2 years, I still haven't gotten hold of the license plates (including the new ones).

    LTO just wants to collect our money, and yet don't want to deliver. And would like to charge us with a huge penalty for their incompetence.

    Better yet, scrap the LTO and Du30 should shut this down! (due to my anger)

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  14. In Ontario Canada, if you want to do business with the government like getting a driver's license, there is only one place you can go, the Service Ontario, it is a one stop shop that caters all transactions in a flash. Even registering and renewing your car is not a problem with plates readily available. This is how the system works here by means of integrating everything in one place. I hope that the Philippine government will review all the functions of every agencies and abolish those that are not performing accordingly as mandated. Government agencies that are liabilities and tools of corruption must be stop and dissolve immediately!

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    Replies
    1. Corruption cannot be stopped here in the Philippines. No matter who;s in charge. We can hope, but 100 years from now..I'm sure we are still hoping.

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  15. this country's government, no matter who heads it, will NEVER EVER be one that is accountable to it's citizens...I wonder why people are clapping Sen. JV for his proposal to fine or close down Globe/Smart for poor service if the government cannot lead by example...incidentally both (Globe/Smart and LTO) were under the umbrella of the former DOTC...just goes to show...

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  16. once elected or hired as a public servant, good, proper and responsible service goes out the door...case in point is the attempt to remove plunder as part of the crimes covered by the death penalty punishment...because plunder mostly applies to ??? need i say more?

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  17. eto lang sasabihin ko sa LTO ----- Change Scamming!!!!!!
    Punyeta Kayo LTO

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    Replies
    1. I agree!change scamming!!!LTO bulok!

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  18. We bought a car just last Feb. 15. Come Feb. 17, the salesperson told us that there is a new memo from LTO that prohibits us from using a car without the O.R./C.R. The first thing that came into my mind was that he already knew this memo way before but chose not to tell us because we might not push through with the purchase. But can I blame him when the cause of all these things is the incompetent and inefficient LTO? I've said this before and I will say it again, bago kayo mag-implement ng bagong rule, siguraduhin niyo munang maayos niyong naiimplement yung mga dating batas at maayos niyong ginagawa ang trabaho niyo. Hindi ko kayo susundin hangga't di ko ginagawa ng tama yung trabaho niyo.

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    1. i agree with you... im planning to get a car this coming 1st week of march, then suddenly this news came in. fuck talaga kawawa naman consumers.. bat hindi sila mag focus sa mga lumang sasakyan!!

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    2. excuse me, maaring luma na nga ang MGA sasakyan ko pero bayad na with no less than 50-75% DPs, always paid within 18-24mos. sorry pero dapat lang na ang mga bagong kuha ang higpitan, lalo na kung walang garahe pati na newbie drivers. lalo na yung mga low DP with 60mos to pay - killing you softly...until mahatak.

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  19. Ang reason bakit may "new standard" sa temporary plate na pinapagawa ng lto sa mga dealerships ay para madali makapanghuli ang lto ng mga bagong labas na sasakyan na posible na wala pang or/cr.

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  20. magbago man ang Administrayon walang ipinagbago ang LTO....Same Shit different days.

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  21. Another question may be added: "Can the citizenry file a class suit against LTO for citing violations they themselves help create?"

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  22. Consumer or Auto Groups could file for a TRO on the Memorandum. Fire the persons involved for gross incompetence.

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  23. Ano ginagawa ni duterte...

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  24. Mga bugok pala kayo eh. Bakit yung bumili ng car ang pagmumultahin nyo eh kasalanan ba naming kung wala pang nirerelease na papers at plaka ang car dealership dahil na din sa mabagal na Sistema nyo. Pag kumuha ka or nag renew ka nga ng lisensya ang tagal bago ma-release dahil na rin sa kabobohan nyo tapos mga tao papahirapan nyo mga bugok!

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  25. Sa mga nabiling motor ng December 2016 na wala pang or/cr hndi na rin pwedeng gamitin dahil sa pinalabas na memo?

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  26. What's happening to you guys? instead of improving the agency / making changes from previous Aquino admin, it's getting worse now. :(

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  27. It should be titled, "Tons of Redtape and Scoops of Bullshit at the rotten graft-ridden LTO will make your driving experience miserable".

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  28. The idea is a plain stupidity! This is the aspect where filipino government officials' (LTO) runs out!

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  29. so even if i paid my downpayment for a brand new car in COLD HARD CASH, i'll get my car after 90 days?! And it's because of LTO's kapalpakan at napakabagal...... san ang hustisya don? Lakas maka-demand ng LTO, eh sila nga mismo bagsak sa performance.

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  30. I went to the LTO and talked to along time friend who works as upper management in LTO. Since its been a month already and i still dont have the or cr for my new vehicle. He says the problem is with the dealers and not with them. Or cr can easily be released but the dealers register their sold vehicles by the bulk . That is why they are penalizing the dealers for such a big penalty. Then i went to the my dealer and asked them about my problem . They cant give me a straight answer. All they can say is they are working on it and will call me as soon as it is released hopefully the next day. I have been calling them for a week they wont answer my call so i go to them and tell them ill just use my car and pay the penalty so they can be penalized too. Then again same story and they are trying to be nice to me and asked me if i can only use my car insde the subdivision. You guys judge the situation

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  31. dapat ayusin yung sistema...

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  32. dati may new motor AKO... then less 1 year ko nkuha yung plate... then nung ireregister ko n ulit... sabi sa emission dp p daw pwede ksi dipa upload yung new plate....ky ayun s tagal n kababalik ko s emission... nagpenalty tuloy ako.......

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    Replies
    1. Ikaw rin ba yung nag kuwento sa Facebook? May post kasi na nagiging viral.

      This is the problem of an outdated and archaic car registry system. It's prone to errors, lapses, etc.

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  33. year 2015 pa ako nagbayad para sa plate no. reolacement ng car ko. hanggang ngayon wala pa rin. 2 years na akong bayad.. wala parin..kelan kaya ito ibibigay ng LTO??? ��������������

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  34. Nag-renew kami ng license, walang nabigay na card hanggang nag-renew na kami ulit AFTER 3YEARS. Nagbayad kami sa bagong plaka, walang binigay na plaka 1YEAR MAHIGIT NA. Bumili kami ng sasakyan, wala pa ding OR CR, tapos bawal gamitin kundi may multa.

    Nag-renew kami ng rehistro sa TAMANG BUWAN PERO LIPAT LINGGO NA DAW. LATE DAW KAMI NG 1 ARAW KAYA MAY PENALTY. EDI WOW!

    Kapag kayo late ng ilang taon ok lang, kami 1 araw sa tamang buwan lang May PENALTY na! San ka pa? Ang perfect nyo grabe!

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  35. bulok na ahensiya. bakit di na lang palitan lahat empleyado dyan. dami kurap dyan.

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  36. Pwede bang idemanda yang LTO for their failure to provide the services they are suppose to do, be it indivually but much better as a group?

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  37. Dito sa lugar namin sa socsargen mga kurap ang Lto katamihan namumuno mga muslim mukhang pera... nadito pa ang highway patrol group pinaka kurap paparahin ka hahanapan ng mali.bibigyan ka ng T O P pagkatapos pagpunta mo sa office nila kakausapin ka ng mga taong nasa labas.. hihingan ka ng pera mas mababa sa penalty mo kaya nya ilabas ang licencya mo. Bibigyan nya lang ang nasa loob. Sana makita ng govnt na ginagatasan lng ng HPG ang mga taga socsargen...

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  38. Penalizing the buyers and dealers for their own incompetence. It's more fun in the Philippines.

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  39. im from the car industry. the truth is, almost all or if not all dealers, process the OR/CRs by the bulk. Usually every 3 months. This is a known practice in the auto industry. I'd say that the LTO is partially right that its the dealers who are responsible for the delay. As for the license and plates, thats a different story.

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    Replies
    1. Kakasama ng loob tong mga dealer nato. Antagal mo magaantay ng papel knowing na di pa naman talaga nila pinaprocess. Pinapatulog nila sa kanila.

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  40. Dati ng problema sa LTO ang driver's license and car plates... Dati rati manual registration, talagang mag aantay ka para ma issue ang driver's license card. Then nag computerization, kailangan ma register ka sa data base para ma register ka at makapag renew ng driver's license. Tapos implementation ng computerization system kaya may delay, And then, sa contractors ang problema kaya nagka delay, ngayon pabago-bagong regulations... Puro Stop gap measures and ginagawa ng LTO gaya ng traffic schemes sa edsa. Ang kailangan siguro ay political will from this administration para maayos ang buhol-buhol na sistema hindi puro pahirap sa mga motorista. Parang sa Metro Manila at kalapit na mga probinsya naman ang problema.

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  41. ang seven day process ay di natutupad kasi bumili ako ng motosiklo good as cash, kunti nalang kulang ma fully paid na tapos dapat ifull paid ng 1month. eh ang kaso ilang araw nalang 1month na pero ang or cr ay wala pa. ang dami daming palusot si dealer at kahit yung pnp clearance ay di rin binibigay until now. may mga back log nga dn daw sa lto nung tumawag ako pero di dn sure kung nandun naba yung mga papel ko... tawag nalang daw ulit.. ang buyer magkakapenalty pag wala pang or cr pero ang lto at dealer anung penalty sa kanila sa mga delayed nila? di mo rin masabi sinong may kasalanan kasi nagtuturuan nalang sila... pinupull out ko yung mga papel ko kasi gusto ko ako nalang magprocess ayaw naman dn...

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  42. Tawag na natin sa 8888 and mag reklamo tayo.

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