Motoring News

Congressman wants to probe dealers enforcing ‘installment-only’ policy

Brace yourselves
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PHOTO: Leandre Grecia

A couple of years ago, the Department of Trade and Industry (DTI) issued Department Administrative Order (DAO) No. 21-03, which essentially prohibited automotive and motorcycle dealerships to sell their products on an ‘installment-only’ basis.

It looks like some dealerships still disregarded that, though. You see, congressman Dean Asistio, Representative of the 3rd District of Caloocan City, has just filed House Resolution (HR) No. 0806 which seeks to investigate car and motorcycle dealerships that violated DAO No. 21-03.

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If you’re unfamiliar with the DAO, it mandates all entities selling consumer products and services to provide its clientele with various payment options, whether in cash, via installment, or a combination of both. Violation of this will result in a P500 to P10,000 fine and/or imprisonment of at least five months to at most one year.


Pertinent details about the resolution have yet to be published, but the proposed HR is entitled “Violation of the automobile dealership industry in terms of their Mandatory in-house Financing.”

Alinsunod sa [DAO] No. 21-03 ng [DTI], mariin po nating tinututulan ang gawain ng mga dealer na kung saan sapilitan at hindi binibigyan ng pagkakataon ang mga mamimili na pumili ng pamamaraan kung paano nila babayaran ang kanilang nais bilhin na sasakyan,” the lawmaker said in his statement.

We’ll keep you posted once there are significant developments regarding the matter. In the meantime, if anyone here has experienced dealers forcing them to buy vehicles via installment, feel free to share your stories in the comments section.

House Resolution on ‘installment-only’ dealerships:

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PHOTO: Leandre Grecia
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