I recently received an email from someone who was planning to buy
a "used" / "2nd hand" vehicle. He wanted to know how he could initially
check that the unit he was buying was "clean". Here is one way to
immediately check the LTO status of the used car -
Text this :*LTO space VEHICLE space XXX000* *
e.g., LTO VEHICLE XKY263*
XXX000 stands for your vehicle's PLATE NUMBER
SEND to 2600* and wait for Auto generated reply then save to
BUYING A USED CAR THROUGH FINANCING
Used vehicles up to 5 years old can still be purchased through bank
financing. Some banks will finance the used unit at 70% of the
appraisal value, others will shoulder 50% of the appraisal value.
The amount to be finance will depend on the vehicle model, make,
year and condition. Make sure that you are approvable for a auto
loan. Seek the advice of a reliable automotive sales agent or auto
loan officer for an auto loan approval.
Here are the steps to do after having chosen the used vehicle to buy.
1) Advise the present car owner that you would like to purchase the
unit through bank financing.
2) Inspect the vehicle you intend to buy. Ask the present owner about
the maintenance history of the unit.
3) Check the LTO OR and CR (Certificate of Registration). You can
initially use the "Cellphone Text Check method" stated above.
4) Negotiate the purchase price of the unit. Then deposit a "earnest cash"
of P5,000 with the owner
5) Bring the unit to the bank for appraisal. Submit your auto loan
requirements and fill up a auto loan application
If your income is derived through employment, you will need to submit
the following -
a) Certificate of Employment with compensation and/or latest ITR
If your income is derived from business -
a) Business Registration (DTI)
b) Latest ITR with a audited financial statement
c) If needed, a copy of your bank statements or passbook
6) Once your auto loan is approved. The bank will release a
Bank Guarantee of Payment to the present owner.
The Bank Guarantee of Payment will state that the following
documents need to be submitted
(at this stage you can now pay your share of the purchase price to
the owner to secure the vehicle's ownership)
a) Original Notarized Deed of Sale between you and the car owner
b) Stencils of the vehicle Engine and Chassis
c) Original LTO OR and CR under the name of the new owner
d) 1 yr Comprehensive Insurance of the vehicle that states that
the vehicle is mortgaged to the concerned bank (the buyer / borrower
pays for the insurance premium)
e) payment of Chattel Mortgage Fee (the buyer / borrower pays for this)
As soon as the present car owner submits the above documents, the full
amount financed will be released through a Manager's Check
payable to him.
Here are the steps for the Transfer of vehicle ownership
1) Bring the vehicle to Camp Karingal for Macro Etching and secure a
2) Bring the following documents to the original LTO Agency that
registered the Vehicle
a) PNP clearance,
b) stencils of the vehicle Engine and Chassis numbers,
c) Original Notarized Deed of Sale
Upon submission of the above documents, the LTO Agency will release
a new LTO OR and CR under the name of the new owner.
Buying a Used Car? Visit the following sites to search for one -
AUTO SEARCH PHILIPPINES - Free Ads for Used Vehicles