DTI Says cannot Sell 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.


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