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May 2, 2025

LTO Will Now Require Dealers To Form An Association With At Least 100 Members


More bureaucratic red tape or more efficient service? The Department of Transportation (DOTr) via the Land Transportation Office (LTO), is now requiring dealers to form an organization or association.

Memorandum Circular VDM-2025-4363 dated last April 14, 2025 has just gone into effect and will require both motor vehicle and motorcycle dealers to join or create their own groups or associations for greater efficiency and coordination. The LTO cites, among others, to effectively coordinate the roll out of license plates as well as the implementation of other programs.

Among the requirements (a copy of the memorandum circular is posted below), is that for the organization or association to be accredited by the LTO, it must have at least 100 members which are, in turn, all accredited dealers. This alone removes the possibility of having a single-brand dealer group as no brand, even market leader Toyota, has 100 members or more.

Once formed, the organization must be duly registered with the SEC and, therefore, must have an office address. The organization will then submit a list of all its members to the LTO and must elect five authorized representatives as point persons for all LTO matters.

A certification of organization or association will then be issued by the LTO. A fee of P 10,000 will be collected “to cover the cost and expense of regulation.”

In cases where the organization or association would have less than 100 members, the said organization or association will be given just three months to meet the minimum number. Otherwise, the LTO will revoke its certificate of accreditation.

21 comments:

  1. Personally I think its red tape, it seems redundant.

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  2. We need DOGE in our government!

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  3. so exactly how does this benefit ordinary consumers?

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    1. If the LTO wants to push through with their plan to have plate numbers released via dealerships, they want the dealers to form into associations or orgs first.

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    2. Unahin muna ng LTO ang backlog ng plate numbers bago magdagdag sakit ng ulo

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  4. It just adds to the inefficiency of the already abysmal agency services. Why does LTO require this? What particular problem do they expect to solve or prevent with this requirement?

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  5. Basta govt service puro PALPAK Inefficient.
    ALIPIN SA SARILING BAYAN

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  6. Why not just admit that LTO is highly inefficient and outsource/privatize the administration and issuance of license plate? I am 100% sure na maraming magbi-bid to get this outsourcing project dahil sigurado ang kita.

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  7. LTO threw its responsibility to the proposed association. What if small car manufacturers cannot find 100 dealers? Will they close shop?

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  8. Dapat maexplain muna ang pros and cons nito sa public, and why 10k is a subjective payment. Para naman malaman na talagang magbebenifit o dagdag kita lang ba to pero wala namang mareresolve.

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  9. Creating an association or groups means another amount charge to the buyer or consumer, another way of corruption tsk,tsk...

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  10. Alisin nila mga fixer.iniba lang pangalan..mga fixer la ein sila

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  11. Another money making schemes by the greedy people in the LTO. No shame at all. Money, money, for the greedy..🤬

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  12. Since they can't run their processes efficiently they burden the ones they actually serve to cover their ineptitude

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  13. Puro na naman panggigipit sa mga customer at dealer yan..hindi na nagsawa ang LTO sa ganyang galawan..hindi na kaya cla nakokonsensya?

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  14. Until now there's even a backlog of Certificates of Registration [CR] using the orig'l security paper. LTO is inefficient.

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  15. Waste of time & money for the worse government office in the Philippines 🇵🇭 🤣 still waiting my plates 2years 6 months now there tracking says at the dealership but they say they don't have them ffs 😂

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  16. Another stage to prolifirate, is LTO ineffective in conveying its duties and always seek a 3rd party to do so?

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  17. Hindi pa nadala sa requirement ng PUV Modernization na ang mga operators lang na coop member ang bibiyan ng franchise.

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  18. May nangyari po bang public consultation about this? Hindi clear ang objective ng memorandum. May payment involve para sa regulation? Bayad na nga ang plaka, hanggang ngayon wala pa. Dapat mareview ulit ito gaya ng memo about selling/buying second hand cars. Sana makaabot ito sa senado or someone na makakuha ng attention ng government.

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  19. There are other priorities that LTO must look into as a regulatory agency. With so many road crash incidents happening around the country, the thrust of the agency is how to curb down the number of incidents resulting to fatalities, injuries and damage to properties. Your services particularly on enforcing traffic rules is of crucial important on account of prevailing risk on our road environment nowadays. Not money making activities.

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