DTI Bans “Installment Purchase Only” Program When Buying Motorcycles


MANILA – The Department of Trade and Industry (DTI) is preparing a Departmental Administrative Order (DAO) banning motorcycle dealers from only selling units on an installment basis.

At the Senate Committee on Official Accountability and Investigations hearing Monday, DTI Secretary Ramon Lopez said the DAO should provide consumers with the ability to buy motorcycles for cash or installments.

Lopez said based on reports received by DTI, some dealers have “forced” buyers to buy the bike on installments, while there are those who don’t offer the cash payment option.

“We will issue a departmental order, because we have heard these complaints, to address the installment selling concerns,” he said.

He added that the DTI has received 3,060 consumer complaints related to motorcycles, including non-release of the official sales receipt and registration certificate (OR/CR), defective units, motorcycle dealers’ refusal to issue the certificate upon full payment, and the practice of With merchants who offer hire purchase, even the buyer is willing to pay the full value in cash.

To date, 287 complaints have been resolved through mediation, Lopez said.

The remaining 2,633 complaints related to delay in issuance of OR/CR ​​and registration plates and transfer of registration or insurance not covered by DTI and confirmed by the Land Transportation Office.

The Senate Blue Ribbon Committee hearing addressed the alleged misconduct and nonconduct in the implementation of the Motorcycle Crime Prevention Act, or Republic Act 11235.

Additionally, Lopez agreed with Senator Richard Gordon’s point on issuing OR/CR ​​and license plates to motorcycle buyers even when paying in installments. (PNA)

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