Transferring Ownership of a Used Car in the Philippines
Planning on getting a new car and wondering about the paperwork?
Read our simplified guide on how to transfer ownership.
After you have paid for your vehicle (from an auction or a used car dealership), the next step is making the car yours. To begin the process of transferring ownership, immediately claim the following set of documents:
- Release of chattel mortgage
- Promissory Notes
- Original LTO Receipt (also known as the “O.R.”) and Certificate of Registration (C.R.)
Photocopy these documents for the next step.
Note: If you buy the car from a bank, getting the documents takes about a month.
Go to the nearest Registry of Deeds for the cancellation of the chattel of mortgage. (i.e. Cancelling chattel of mortgage = proof that the car isn’t mortgaged anymore.) Prepare photocopies of the aforementioned documents.
Submit the necessary requirements and pay a processing fee. (For us, it’s P800 but it varies.)
You will be issued a receipt which you will present to LTO later on.
Note: this might take a day to process.
Proceed to the LTO branch where the vehicle was registered. If the branch the car is registered in is far away, any branch is fine but you’re going to have do an extra step later on.
Prepare the following documents:
- Cancellation of Chattel Mortgage properly stamped by the registry of deeds.
- Original LTO certificate of registration.
Pay the necessary fees for removing your encumbrance to the LTO.
What is encumbrance? – Basically, it’s a status that says the vehicle is a loan. Removing the encumbrance = the car isn’t a loaned car anymore.
Once the payment is done, you will receive a new original LTO certificate of registration without the “encumbered” label. After this, you may proceed to transfer your vehicle under your name.
Proceed to the records section of LTO with photocopies of the following documents:
- Original Receipt (O.R.)
- Certificate of Registration (C.R.)
They will confirm the region where your car was registered.
After the confirmation, proceed to the approval section of LTO for the approval of documents.
Afterwards, go back to the records section of LTO for the circular which you will need later on.
After you’re done, bring the documents to the approving section.
All of this will take some time, wait for them to be released in the records section.
Congratulations! If you went to the branch where the car was registered, the necessary documents are now where they need to be and the car is now in your name!
But for those who didn’t, there’s an extra step:
Once all your documents have been processed by the LTO branch where you went, you will need to send the following documents to the specific regional LTO branch where the car was registered:
- Original Confirmation
- Photocopy of Deed of Sale
- Photocopies of the Original Receipt and Certificate of Registration (or the OR/CR)
After this, you’re going to have to wait for the documents to be mailed back. This might take about 2 weeks to a month.
We know, the process takes a while. But is spending a bit of effort for a used car you got a phenomenal deal on that bad? Not really.
Check out our other guides here:
Used Car Buying Guide
Looking to buy a used or repossessed vehicle? Feel free to browse through our entire inventory here: