LTO defers new rules, fines for  unregistered sale of used vehicles

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

The Land Transportation Office (LTO) has suspended a recent order that fines buyers and sellers of secondhand cars who fail to immediately register their transactions with the government.

In a memo dated Oct. 23, LTO chief Vigor Mendoza II said Administrative Order No. VDM 2024-046—or the “Guidelines in the immediate transfer of ownership of motor vehicles with existing registration”—will not be implemented for now.

For amendment

“In the best interest of service and to clarify certain provisions for better implementation, as well as to lengthen the compliance period and allow more time to widen the information dissemination, the effectivity of [the AO] is held in abeyance until further notice,” Mendoza said.

He also instructed the LTO executive director to draft and submit an amended version of the AO after considering the inputs of other stakeholders.

Released on Aug. 30, the AO requires the seller to report the resale of a vehicle within five days to the LTO, and the buyer or the new vehicle owner to process the transfer of ownership within 20 days.

Failure to comply with the deadlines results in a fine of P20,000 for both the seller and buyer.

Called out by Tulfo

The LTO’s decision to put the AO on hold came after Sen. Raffy Tulfo, at a Senate hearing on Wednesday, criticized the lack of a proper information drive on the new rules.

Tulfo, who presided over the hearing as chair of the Senate committee on transportation, said the LTO should issue a clearer, amended order and have it amply explained to avoid confusion among the public

He also asked the LTO to waive the penalties for owners who had sold their vehicles before the release of the order.

The senator acknowledged the LTO’s deferment as “a step in the right direction,’’ saying he would monitor how the amended order would turn out.