Buying a vehicle through installments may have its perks for certain consumers that it marked its way as a common payment method in the business. But for some enterprises, it has become the sole means of sale and is a trend that has seen an increased proliferation in recent years, albeit to the ire of those who are not keen on it.

In response to this complaint, the Department of Trade and Industry (DTI) has issued the Department Administrative Order (DAO) No. 21-03, otherwise known as the Guidelines for Payment Options on the Purchase of Consumer Products and Services.

The crux of the pro-consumer rule is essential to give customers the “right to choose” and therefore mandates commercial enterprises, particularly those in the vehicular sector, to provide options in terms of mode of payments.

Related: “PM for the price” violates R.A. No. 7394 Consumer Act — DTI

Consequently, in light of the enforcement of the new guideline, affected businesses are prohibited from engaging their dealings on an “installment-only” basis. In addition, it also demands that any transaction involving payment be conducted in an open view within the establishment’s premises and must be done so in a manner that is apprehensive to the buyer.

As per the Consumer Act, anyone who violates will be sanctioned with imprisonment for a duration of five months to a full year or be fined Php500 or Php10,000, or even both.

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  1. What about Home Credit? They have this 6 months program for no interest purchase but some stores would only give 9 months as minimum with a sky high interest rate added on top of the large downpayment and overpriced installment payment plans. Shoutout to Abenson’s store in Market Market.

  2. Ano po gagawin ko kasi bumili ako ng cash na motor sa LGM Masinag Branch, Sabi nila meron sila ng hinahanap ko kasi wlaa PNP CLEARANCE pero sabi nila madali lang daw process yun lag kalabas ng unit process na daw nila, pero ngayon wala sila update kahit nag tatanong ako. Nalaman ko buwan o taon pala bago marehistro pag wlaa PNP clearance pero sabi ng CASA mabilis lang daw po.😭😭😭 Ngayon dko magamit motor at malayo lalo ito gamit ko pang work at extra income deliver, Kaya nga po ako nag cash para mabilis process pero di pala. alam ko nman po na 7 days simula malabas ang Motor sa CAsa pwede magamit pero afternun dna po kasi malaki multa, lage nila sina sabi may travel permit sila bigay pero, alam ko na basura lang yun kasi LTO lang ang authorise mag bigay po nun. Ano po magagawa para makuha ko ang papers ng Motor ko po.

  3. LPG is expensive in the Philippines,,, plus there is a company in mindanao that competing there own retailers and dealers with…. now thy send us a letter that we cannot refiil to the company plant… because of there bulshtt strategy to wipe us… what a greedy company..