PRESIDENT MARCOS has approved the proposal extending car registration, especially for brand new units, from three years to five years in a bid to unclog work load at the Land Transportation Office (LTO) which has been encountering huge backlogs in permits, registrations and licenses — all vital concerns of car owners (new and current).
The LTO is now crafting the guidelines for this but some sectors have expressed apprehension over the deadline set for its implementation. The new scheme’s deadline — February 15.
ONLY FOR NEW CARS
The new guidelines would cover brand-new vehicles whose registrations were processed by authorized dealers upon purchase. These include motorcycles with engine displacements of 200 cc and up.
According to Transportation Secretary Giovanni Lopez, the move will render car ownership “hassle-free,” citing that car manufacturers and distributors who have been offering longer standard warranties as the reason why the DOTr recalibrated its policy.
“Kumbaga nag-level up itong mga casa, magle-level up din tayo sa mga polisiya natin. But more than that, [dahil sa extension ng validity] maiiwasan natin yung mahabang pila sa LTO sa mga magre-renew na naman, tapos may issue rin ng fixers at corruption, at again, [priority natin] ‘yung convenience ng public,” carguide.ph quoted Lopez.
INITIAL REGISTRATION
Lopez clarified that after the five-year validity of the initial registration; renewals will be done annually on the sixth year onwards. Roadworthiness checks are also required from the fourth year onwards, he explained.
The DOTr chief said he would also put undue pressure on car manufacturers, distributors, and dealers to shoulder the new “hassle-free” policy. Lopez called on members of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) to make the policy free for all new cars sold.
“I think 80 to 90 percent ng car dealers, nagbibigay sila ng free registration as come-on. Makikiusap ako sa CAMPI na baka pwede pa rin nilang gawin, free registration pa rin para at least makakatipid ‘yung ating mga kababayan,” he averred.
OPPOSITION RAISED
The Automobile Association of the Philippines (AAP) is opposed to the DOTr’s proposal saying that it would create more problems than solutions.
AAP President Augustus “Joe” Ferreria said that a long five-year registration could mean more fines accumulated over time making them more costly for vehicle owners since the No Contact Apprehension Policy (NCAP) records violations against vehicles, not the individual drivers.
HALF-DAY RENEWAL
Ferreria instead called on the DOTr to improve the LTO’s system wherein it takes “half a day” just to renew a vehicle’s registration.
Car registration in the Philippines, under LTO, is reputed as a time-consuming and often complex process. Despite efforts to digitize through the Land Transportation Management System (LTMS), motorists frequently encounter various hassles.
Here are the usual hassles in car registration in the Philippines:
1. Lengthy Inspection Processes (PMVIC/PETC)
- Mandatory Inspection: Vehicles must pass the Private Motor Vehicle Inspection System (PMVIS) or Private Emission Testing Center (PETC) to get a Motor Vehicle Inspection Report (MVIR).
- Failed Inspections: Older vehicles or those with minor modifications often fail, forcing owners to get repairs and return for re-inspection.
- PMVIC Issues: Some Private Motor Vehicle Inspection Centers (PMVICs) may have long queues, and their highly automated, strict testing can be a hurdle for older, perfectly functional cars.
2. Physical and Technical Delays at LTO
- Long Lines and Crowds: Despite the shift to online, physical presence is often required for inspection or document verification, leading to long waits at LTO branches.
- Inconsistent “Online” Services: While the LTMS portal exists, not all vehicles are eligible for full online renewal, and technical glitches in the system can hinder the process.
- Stringent Document Checks: Missing even one document (e.g., original OR/CR, valid ID, insurance) can result in rejection, requiring a return visit.
3. Delays from Car Dealers
- Delayed Registration of New Cars: For new cars, dealers often fail to release the Certificate of Registration (CR) and Official Receipt (OR) on time, despite the 3-year registration rule.
- Unreleased Plates: Similar to the OR/CR, physical license plates are often delayed in the custody of dealers, leading to “No Plate” issues.
4. Financial and Administrative Hassles
- Outstanding Violations: Any unpaid traffic violations, even from previous drivers, must be cleared before renewal, which can cause last-minute delays.
- Complex Transfer of Ownership: If the car is not registered in the current owner’s name, the transfer process involves a notarized Deed of Sale, TIN verification, and a visit to the LTO, which is time-consuming.
- High Penalties: Failing to renew on time results in hefty penalties (50% of the Motor Vehicle User’s Charge) and potential impoundment if caught driving with expired registration.
5. Other Common Issues
- Insurance Mismatches: If the Compulsory Third Party Liability (CTPL) insurance name does not exactly match the OR/CR name, the registration can be delayed or rejected.
- Errant Fixers: While LTO warns against them, some areas still have “fixers” offering to expedite the process, which can lead to legal issues or scamming.
- “No Registration, No Travel” Policy: The strict implementation of this rule means any minor delay in the registration process can prevent you from legally driving your car.
To avoid these, the renewal process must be done early (one month before) and ensure all documents and the vehicle itself are in good condition.
Under current regulations, an initial LTO registration valid for three years is processed by the dealer upon purchase.
This applies to brand-new cars, including those with engine displacements of 200 cc or higher.
Owners must renew the registration annually after this initial period, with schedules determined by the last digit of the license plate number.