Car dealers warned by LTO over delayed release of plates, papers

Land Transportation Office (LTO) chief Vigor Mendoza II speaks to members of the media during a press conference at the New MMDA Building in Pasig City on Thursday, February 15, 2024. —Arnel Tacson/INQUIRER.net

MANILA, Philippines — A total of 3,940 show cause orders to motor vehicle dealers nationwide have been issued by the Land Transportation Office. 

These are the motor vehicle dealers who failed to release license plates, along with the Official Receipt (OR) and Certificate of Registration (CR), for newly bought cars within the 11-day deadline.

This was part of their efforts to prevent the stockpiling of license plates in motor vehicle dealerships, said LTO Chief Assistant Secretary Vigor Mendoza II in a statement on Monday.

“This should be a lesson to dealerships that their responsibilities do not stop after [they] sell their cars and motorcycles. They should also be able to provide after-sales services, most especially distributing to the clients their license plates and OR/CR because these are very important documents under our laws,” he said.

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Based on LTO guidelines, its offices must release the license plates and OR/CR to motor vehicle dealerships within five days after the submission of all documentary requirements.

Stiff penalties

For their part, motor vehicle dealerships have six days to forward the plates and documents to clients.

Those who fail to do so face a fine of up to P1 million and the termination of their license to operate, depending on the seriousness of the offense.

In June, Mendoza warned motor vehicle dealers that they must release license plates and OR/CR on time as the LTO was eyeing the strict implementation of the “no plate, no travel” policy. This was after it wiped out its backlog on the distribution of license plates covering four-wheel vehicles.

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In a recent dialogue with the LTO, some vehicle dealers said their clients had repeatedly ignored their messages to claim their license plates, which prompted Mendoza to order all local LTO officials to assist in their distribution.

To further speed up the claiming of the license plates, the LTO earlier issued a memorandum circular informing the owners of new vehicles that temporary and improvised license plates could be used only until the end of the year.

So far, a number of LTO offices have initiated programs that include door-to-door delivery of license plates to vehicle owners.

Mendoza, meanwhile, also urged owners of newly bought motor vehicles to immediately report to the LTO car and motorcycle dealerships that failed to release their plates and OR/CR on time.

They can send their complaints to the LTO’s social media accounts or the AksyON the Spot hotline at 0929-2920865.