OR-transfer-ownership

Transferring ownership for a used car bought in the Philippines

(Hint: Transferring ownership for vehicles in the Philippines is easy, but it needs a little bit of patience).
Buying a used car or repossessed car has become an option for a lot of Filipinos given the rising prices of motor vehicles in the country. However, not everyone is willing to buy a used car given the possible risks and even the hassle that comes with it (vehicle quality, transfer ownership, other papers, etc.). Because of this, some people would rather buy new cars to avoid the headache even if this comes at the expense of their savings.   
Worry no more and save your money as we take you through the step-by-step procedure for transferring ownership for a used car you buy. This is the ultimate guide for transferring vehicle ownership in the Philippines.   

 

Step-by-step procedure for transfer of ownership in the Philippines

Encumbrance Removal for LTO Certificate of Registration

Process

Step 1.

Claim complete set of documents for vehicle bought from bank once available. Documents
to be claimed are:
1. Release of Chattel Mortgage
2. Promisory Notes
3. Original LTO Official Receipt (OR) and Certificate of Registraion (CR)

Step 2.

Proceed to Registry of Deeds within your area of residence for cancellation of chattel
mortgage and prepare photocopies of the following documents:
1. Release of Chattel Mortgage
2. Promisory Notes
3. Original LTO Official Receipt (OR) and Certificate of Registraion (CR)

Step 3.

After submitting necessary documents, prepare to pay a fee for processing the cancellation
of chattel mortgage

Step 4.

Once payment is made, you will be issued a receipt which you will need to present to LTO
to remove encumbrance of your vehicle’s Certificate of Registration

Step 5.

After submitting necessary documents at the Registry of Deeds and paying the necessary
fees, proceed to LTO branch where your vehicle was registered in and prepare the
following documents:
1. Cancellation of Chattel Mortgage properly stamped by the Registry of Deeds
2. Original LTO Certificate of Registration

Step 6.

Pay the necessary fees for removing encumbrance of your vehicle to LTO

Step 7.

Once payment is done, you will receive a new original LTO Certificate of Registration
without the “encumbered” label. After this, you may then proceed to transferring vehicle
ownership under your name

Wait Time

Step 1.

Around 1-2 weeks after paying for
vehicle bought from bank

Steps 2-4.

Approximately 1 whole day for entire
process

Steps 5-7.

Approximately 1 whole day for entire
process

Cost

Step 2.

Php 3 / page (Photocopy rates at LTO)

Step 3.

Php 800.80
(This may differ. This is what we paid upon posting this)

Steps for Transferring Car Ownership

Process

Step 1.

Prepare photocopy of Original Receipt (OR) and Original Certificate of Registration (CR)

Step 2.

Proceed to Records section in LTO for confirmation from region of registration for your car

Step 3.

After confirmation, proceed to Approving section of LTO for approval of documents

Step 4.

Head back to the Records section of LTO for the circular which you’ll need later on

Step 5.

Once done, bring documents received back to Approving section

Step 6.

Go back once again to records section and wait for all the necessary documents

Step 7.

After receiving the documents, you will need to send these documents via LBC to LTO
branch which the car is registered in. Documents to be sent are:
1. Original Confirmation
2. Photocopy of Deed of Sale
3. Photocopy of OR/CR

Step 8.

Wait for documents back from LTO branch your car is registered in

Wait Time

Step 1.

5 minutes

Step 2.

10-15 minutes

 

Step 3.

15-20 minutes

Step 4.

15-20 minutes

Step 5.

10-15 minutes

Step 6.

10-15 minutes

Step 7.

20-25 minutes

Step 8.

Time frame varies

Around 2 weeks – about a month

Cost

Step 1.

Php 3 / page (Photocopy rates at LTO) 

Step 7.

Php 257 to and
from LTO branch
of your car’s registration

Things to take note of when transferring ownership for your used car

The wait is worth it! 

Finishing the entire process for transferring the ownership of a used car can take weeks but this shouldn’t stop you from buying. First of all, you can save around 40% off the suggested retail price of a new vehicle, maybe even more. Second, a carefully inspected used car can serve as your first car, could even be your second or third. Lastly, a used car has already been tried and tested on the road. Just make sure to carefully check the car both inside and out to avoid all the heartaches.  

You can save money on LTO fees.

The fees that LTO will charge you for transferring ownership for your car are necessary and unavoidable but did you know you can save money on some of these costs? 

First, you will need to prepare a photocopy of all the necessary documents (OR/CR, Deed of sale, etc.) Having these documents photocopied on-site can be very expensive especially if you’re copying multiple pages of documents. You’re better off doing all these elsewhere. Lastly, you will also be required to have a car insurance for your vehicle. Again, getting this on-site can be more costly and you’ll be saving more getting one somewhere else.  

These may seem insignificant savings at first but trust us. Every peso saved is another that can be used for other necessities.

Updates on how to transfer ownership of used car coming soon!

We’re going to constantly update this blog entry to include more detailed steps, appropriate fees, and much more so stay tuned! In the meantime, feel free to check out other articles on buying used cars:

Used Car Buying Guide

Repossessed Car Buying Guide

Even more information

Looking to buy a used or repossessed vehicle? Feel free to browse through our entire inventory here:

Automart Repossessed Car List

What exactly is Logo_30px?

Automart.Ph is your source for cheap, good quality used and repossessed cars. We never mark-up prices so you’re assured of the cheapest possible prices. You can buy  your dream cars here 24/7, online.

Go to Automart.Ph Now!

Reach us through: contact@automart.ph 0927-887-6400, text call or viber FB Messenger: AutomartPh
   

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