Question 1: Hello, Top Gear PH. I just wanted to ask because I can’t find a relevant article or news about this. I just bought a new car and I want to know if I can use it while waiting for my OR/CR from the dealer. Thank you!
Question 2: Hi! I bought brand-new vehicles (a pickup truck and a big bike) on October 27 and November 2 last year. Up to now, there are still no registration papers provided to me by the dealers. Is this the current norm among dealers? Or is this a violation of my rights as a consumer? I hope you can assist me (and countless other consumers) in this. And yes, I have already reported this to DTI and still no action from them after two weeks. Thank you.
You may use your new car on public roads for seven days from the date of the sales invoice on the basis of the conduction sticker. After seven days, your new car must have a Certificate of Registration (CR) for it to be used on public roads.
You can expect the car dealer to secure the CR of your new car within seven days of the sales invoice. If the car dealer fails to do so, you can file an action to demand
All motor vehicles used or operated on any public road or highway of the Philippines must be registered with the Land Transportation Office (LTO) for the current year in accordance with the Land Transportation and Traffic Code. The “no registration, no travel” rule is expressly provided in the Code.
The LTO regulations also provide that the car dealer is mandated to register the motor vehicle with the LTO within seven calendar days from the date of the sale.
The early LTO regulations provide that the conduction sticker’s validity ceases when the motor vehicle is sold and delivered to the buyer. The rules are not clear regarding the validity and expiry of the conduction sticker. As a result, some will argue that the conduction sticker will expire on the seventh day from the sale and delivery of the motor vehicle to the buyer.
Every car buyer expects to use his new car on a public road complete with a CR. The car dealer does not exclude the CR from among its deliverables to the car buyer. As a result, there is an implied warranty in the sale of a car that the car must come with a CR and it must be delivered within the seven days from the date of sale in order for the buyer to use the motor vehicle.
If the car dealer fails to deliver the CR within the seven-day period, there may be a violation of the terms of the sale, and the seller/dealer may be violating the Consumer Protection Act for employing unfair or unconscionable sales act or practice. The consumer may file the proper complaint with the Department of Trade and Industry (DTI) to investigate the matter and to resolve the dispute among the parties.
As a practical matter, you should coordinate with your dealer for the status of the registration of your new motor vehicle.
Meanwhile, the LTO, citing a shortage in the supply of license plates, has suspended the apprehension of motor vehicles without license plates, provided the owner can present documents (OR/CR) that the motor vehicle has already been registered with the LTO.
The purpose of a license plate is to easily identify a motor vehicle and to be able to trace its owner from the LTO records. Unless the LTO expedites the registration of motor vehicles and issuance of license plates, there will be motor vehicles running around that are almost impossible to trace, not to mention the undue restriction for owners on the use of their motor vehicles.