DTI Says Dealerships can No Longer Sell Vehicles at Installments-Only Basis

DTI Says cannot Sell at Installments-Only Basis

Welcome to the topic “DTI Says Dealerships can No Longer Sell Vehicles at Installments-Only Basis

Nowadays, obliging vehicle buyers to buy their ideal cars through financing has been a prevalent method among dealerships. Unfortunately, it turned out to be even more rampant in recent years.

Buyers have the “Right to Choose”

In this article, we bring you some great news about this, anyway. DTI has recently dispensed Department Administrative Order (DAO) No. 21-03, or the Guidelines for Payment Options on the Purchase of Consumer Products and Services.

The DAO focuses on the buyers having the “right to choose”. They will provide several options and ways of payment. It involves all things contained in the transaction or proposal to buyers for purchasing products and services.

What is the benefits of the option to pay cash?

The directive also clearly declares that the required plan of payment preferences will be the same, excluding any person or company.  It is to settle any vehicles and product or service through an “installment-only” payment pattern. DAO announces that buyers shall be given the choice to pay in cash. Rejection of the privilege of a buyer to pay in cash shall establish a clear violation of Article 52 of the Consumer Act. Just in case, the seller is not prohibited from offering a discount on the selling amount if the payment is reimbursed in cash. And the selling amount shall continue equally. Even if the method of payment is via debit cards, QR codes, electronic fund transfers, or other digital methods were accessible to consumers.

Besides, the DAO also instructs that the payment choices should be posted in a visible place within the business grounds. They must be presented in a clear way to the consumers. Purchasing a vehicle via installments may have benefits for the particular buyer. Doing this way is a standard payment process in the industry. For many businesses, it became the only method of transaction. It is an undertaking accepted in recent years. Whereas it annoys to those who are not fond on it.

More Payment Options, More Freedom!

The cause of the pro-consumer instruction is important to offer customers the “right to choose”. Hence, they can instructs profitable firms, mainly those in the vehicular sector, offering choices in terms of method of payments. Thus, if implementing the new regulation, affected industries may expelled from partaking in their transactions on an “installment-only” premise. Besides, it is also not easy if any contract about payment is in an open view within the establishment’s grounds. It must be accomplished so the buyer may think twice. The directive is ready to counter the increasing grievances from buyers, as they are capable to pay in cash.

Why was this mandate given?

As of this year, the concern conveyed in a Senate hearing. DTI recounted that it had received over 3,000 consumer grievances associated with vehicle sales. Less than 300 has compromise. The procedures were correlated to installment procurements that consumers have protested to the DTI.  This is about being forced to sign contracts. Letting merchants re-claim vehicles without announcement in the event of missed installment payments. As well as, restraining the purchaser’s OR/official receipt and CR or the certificate of registration until all payments have been finalized.

Know Your Rights as a Buyer

Buyers should know their various rights. DTI specified something relevant that no seller is permissible to oblige a buyer to purchase on an “installment only” basis. Hence, the DTI’s DAO makes vehicle merchants think carefully before applying these sales strategies. The buyer must always bear in mind that he should use his rights and never persuade by the installment basis offered by a seller. Be wise. Having knowledge about purchasing a car is essential. This new rule disallows selling products on an ‘installment only’ means of payment. DTI orders all sellers, and companies to offer buyers the option to pay in cash.

DTI Says Dealerships can No Longer Sell Vehicles at Installments-Only Basis
DTI Says Dealerships can No Longer Sell Vehicles at Installments-Only Basis

Youtube

Stay up to date on vital topics related to car safety and insurance in the Philippines by visiting our YouTube channel, ‘Perla Insurance.’

We address often asked concerns through our simple animated videos from our new “Perla Cares” series. This is to keep our viewers informed and to make this essential information more accessible to the general public from a reliable source- such as a well-trusted insurance company in the Philippines.

We also encourage our viewers to offer comments on topics they’d like to see covered in future videos so that we can make sure they’re getting the knowledge they require.

Facebook

Like “PerlaInsuranceOfficial” on Facebook to help us develop our community’s relationships by increasing interaction and participation.

We’re also available to assist our community with any insurance-related inquiries.

If you choose to avail of our services, you can reach out to us via Facebook. Our team will provide you with extra information, lead you through the process, and explain the technique in greater depth.

Perla Insurance is proud to be one of the best car insurance companies in the Philippines. We not only provide the best car insurance, but also pride ourselves in our fast and personalized claims servicing whether you choose TPL Insurance or Comprehensive Insurance.

Both our TPL Insurance and Comprehensive Insurance packages will set your mind at ease when it comes to the protection and safety of your vehicle, yourself, and your loved ones.

Perla Insurance is concerned about our client’s well-being, as it always has been. As the Philippines’ best insurance company, we strive to meet our customers’ needs by delivering nothing less than the best auto insurance.

We strive to provide the highest level of service quality and the most benefits possible, ensuring that you receive the best return on your investment.

Because Perla Insurance is synonymous with high-quality insurance, the top insurance company in the Philippines guarantees both assurance and service excellence with all our customers.

Have any questions regarding the topic “10 Most Popular and Top Sold Cars of 2022” feel free to comment below.

Also Read: Most Popular and Top Sold Cars of 2022

Leave a Comment

Your email address will not be published.

Welcome to Perla Insurance!

Your privacy is important to us. By using this website, you agree to the Terms & Conditions, use of cookies and your personal information in accordance with our Security & Privacy Policy