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Car Owner's Guide and Automotive News: Buying a Used Car http://mirpam1.blogspot.com/2008/10/buying-used-car.html

1 of 13 30-Jun-13 20:25

4) Negotiate the purchase price of the unit. Then deposit a "earnest cash"of P5,000 with the owner5) Bring the unit to the bank for appraisal. Submit your auto loanrequirements and fill up a auto loan applicationIf your income is derived through employment, you will need to submitthe 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 statementc) If needed, a copy of your bank statements or passbook

6) Once your auto loan is approved. The bank will release aBank Guarantee of Payment to the present owner.

The Bank Guarantee of Payment will state that the followingdocuments need to be submitted(at this stage you can now pay your share of the purchase price tothe owner to secure the vehicle's ownership)

a) Original Notarized Deed of Sale between you and the car ownerb) Stencils of the vehicle Engine and Chassisc) Original LTO OR and CR under the name of the new ownerd) 1 yr Comprehensive Insurance of the vehicle that states thatthe vehicle is mortgaged to the concerned bank (the buyer / borrowerpays 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 fullamount financed will be released through a Manager's Checkpayable to him.

Here are the steps for the Transfer of vehicle ownership

1) Bring the vehicle to Camp Karingal for Macro Etching and secure aPNP Clearance2) Bring the following documents to the original LTO Agency thatregistered the Vehiclea) 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


2 of 13 30-Jun-13 20:25

Posted by Miriam Barredo at 4:03 AM

Labels: auto, auto loan, buying a used car, lto, registration, used car purchase help

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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

Recommend this on Google

40 comments:JNolan said...

Hi! If I want to buy a third-hand car from a friend, is it okay if I won't have to go throughCamp Caringal and have the car ownership transferred? Would a notarized deed of salebe enough to say legally that the car is mine now? Thanks very much for taking the timeto answer my question. -Jonathan

September 3, 2012 at 6:02 PM

Miriam Barredo said...

Hi JNolan, itbwould be to your best interest to bring the unit to Camp Karingal for macro-etching and clearance. This will ascertain that your unit is not stolen. Yes, the notarizeddeed of sale with a copy of the valid ID of the owner is your proof of ownership. But, youmentioned that your friend is the 3rd owner already. Is the vehicle's LTO CR in his name?If, not, then he has to give you the copy of his notarized Deed of Sale with that owner'svalid ID, too. If the 2nd owner did not transfer his name to the LTO CR yet. Then beingthe 4th buyer, you should have in your possession 3 Notarized Deed of Sale , 1 for eachprevious sale and a copy of each previous owner's IDs. Otherwise, an open Deed of Salesigned by the original owner is best. But do you understand now, why you should taketime to have the LTO CR transferred to your name? Para claro that you are the presentowner of the unit.

September 4, 2012 at 7:40 AM

sherr25 said...

Hello. Tnx for your post. Its very helpful. I have a question. ,,,I will buy a secondhand carfrom a private person.. Should i bring the car to Camp Karingal first before paying thesaid amount? Thank you soooo mmuucchh!!


3 of 13 30-Jun-13 20:25

November 4, 2012 at 8:41 AM


Hi Sherr25, as the buyer it is your choice. This article shows you what are the neededdocuments for the transfer of the vehicle LTO CR to you and things to do to ensure thatyou buy a "clean" car.

November 4, 2012 at 3:13 PM

sherr25 said...

Thanks for the reply Miss Miriam! Leaving the secondhand car that i will buy from aprivate seller to Camp karingal before paying the amount, is it possible to do that coz as iread here thats the only way to know that the car is not stolen. sorry for so muchquestion,, Ive been searching so much on internet about buying a second hand car but itdoesnt says so much about the papers and secure buying. Thanks for your post where iget more infos!



Yes, Sherr25 that is the secure way of buying a secondhand car from a private car owner.Best Regards. I am glad to be of some help to you.



By the way, the car need not be left at the camp. The unit can be brought in the morningto have it macro-etched at Camp Karingal. The clearance can be ready in the afternoon.As the buyer, you can oblige the seller to give you the clearance.


sherr25 said...

Thank u so much!Now i have idea how it should be done!Yes i will obligue the seller forthe clearance since its needed for transferring of name at LTO..and the transeferring ofname to new owner only take a day at the LTO or? Thanks! i read on the net also that ittakes 3days for macro-etching but it sounds even better that it only takes a day!Cheers Miriam!Regards from Morgan of Sweden!


Anonymous said...

Your post is very helpful. Ive been searching infos like this,and your like an angel i found..By the way, Im currently on the process of purchasing a less than a year,second hand


4 of 13 30-Jun-13 20:25

vehicle and still waiting for the result of the vehicle check processed by the bank(BDO).My loan was already approved, however up until now, since October 22, when I paid thebank for the vehicle history, the result is still pending. Almost everyday Ive been callingBDO for this because the owner, who is leaving for Germany soon, is frequentlydemanding for advance payment. Ive already given the owner the sum of P22,000,thoughI fully understand her actions since the car was already in my possession since the time Ihave applied for my loan(October 17,2012),yet this cause me so much stress and pain inmy wallet. :)

My question is this, Is it normal to wait the result of the vehicle history for almost 1 monthnow? If so, what checking or process that the Lto/BDO is conducting to have this agonyof waiting.The insurance was already xpired though I was able to negotiate with the bank to have itensured. They were able to ensured it thru prudential without any paymets, Is thispossible? I have called the prudential and was able to confirmed it, and was advised thatthe policy will be delivered to my address under buyers name. Do you happen to knowthe cath of this action? This is too good to be true to me,since i didnt shell out a singlepeso for the insurance. Im worried it has hidden charges or what (hope not).

I wanted to find someone from the LTO so I can asked what took them so long to releasethe result. Im very frustrated here, and Yes your definitely right, It will kill my patience.Thank you for your time. God Bless You. Karen



Hellp, Karen. By waiting for the vehicle history, do you mean the unit's LTO OR CR hasalready been transferred to your name? That it already has a PNP clearance? Do youremember the LTO personnel who released the new LTO OR CR? Maybe, you could givethe name of the LTO personnel you approached and who released your new LTO OR CRto BDO para ma-speed up yun Vehicle History process ng bank. Please take intoconsideration na Marami din non-working holidays between Oct 22 and now.



Hello Karen, since you are the new owner of the car, the comprehensive insurance policymust be under your name. Since your unit is mortgaged to Banco De Oro, it must statethe mortgagee clause and that the unit is mortgaged to Banco De Oro. There should be 2copies - one for you and one for the bank. Me kopya na rin ba yun BDO of the newcomprehensive insurance policy?


Karen said...


5 of 13 30-Jun-13 20:25

Hello, I just got back from out of town conference. I thank you very much for yourresponse. To answer your question..

No, the OR/CR is not yet transferred to my name, it is still under the owners name. What imeant was, the insurance was under the owners name (my bad, i type the wrong word).Until now the vehicle history result is still on processed. I actually asked my SA of BDO, Ifthey can disclose the LTO personnel who is in charge of this process,however Hedeclined to provide any info. As usual he advised me to wait. Am I going thru a normalprocess of waiting? Do you happen to have the same scenario of my case?

It is indicated in the insurance ( I already received them) that the car is mortgaged withBDO, the amount of the vehicle actually corresponds to the appraised value of the vehiclefom the bank. I assumed the bank already got a copy kasi it is stipulated in the insurance"owners copy". I have talked to the SA of my comprehensive insurance (w/ AOG) and Iinquired them about the payment. She told me I can still pay it until January 2013. Do youthink im on the right track here???

Honestly kasi Im thinking baka matagal na narelease ung result at nka hold lang kayBDO,for the reason I dnt know(baka Bank business or what). Marami pumapasok sa isipko,maybe because Im just new to this whole thing. Im very glad and thankful for your timeanswering my previous post. Hope to hear from you soon.. God bless you always in allyour endeavor.



Hi Karen, are you the buyer? Or the seller? Because if the bank is already at the CarHistory stage, it should mean that as the buyer, your auto loan has been approved. Thecar you are buying has been inspected and appraised. Your car has already been macro-etched and issued a PNP clearance. BDO has issued a Bank Guarantee to the seller. Youhave already paid the seller your downpayment. The LTO OR CR has been transferred toyour name. You have submitted the new. LTO OR CR to the bank for car history. As thebuyer, the comprehensive insurance must be in your name. The car's stencil of engineand chassis and the Notarized Deed of Sale must be submitted too. Are you talkingdirectly to BDO? Or through a freelance agent?


Karen said...

Yes Miriam I am the buyer, I have been talking directly to the bank.. The bank neverissued the payment to the owner because they are still waiting for the vehicle historyresult, as per last conversation with the bank,just few days ago, everything are ready nadaw since my loan was already approved(before the vehicle history,i already have itchecked by the bank and appraised it at the same time)ang hinihintay nlang ay ang resultnung vehicle history para mabayaran na c owner.during the vehicle history kasama na ba


6 of 13 30-Jun-13 20:25

nun ang macro-etched?nakapagbigay na ako ng advance payment sa owner..technicallykulang nlang ako ng 7k sa kanya para macomplete na. I have asked a bank guaranteeletter from the bank,hindi daw cla pwedi mag issue nun kasi they need to wait pa raw theresult of the vehicle history.



Hello Karen, I am sorry to hear that you have been waiting so long for the car history. Inmy own experience, the car history of the 2nd hand vehicle I purchased through financingwith Union Bank of the Philippines took only 7 working days. This was after submitting theLTO OR CR already under my name, stencils of unit, comprehensive insurance policyunder my name, PNP clearance, Notarized Deed of Sale and payment of Chattel. Theseller was able to get his check payment from Union Bank of the Phils. afterwards.


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December 15, 2012 at 3:28 PM

selling used car said...

i love your post..its very helpful and very informative. i do love reading it because it reallygives me a lot of information

December 18, 2012 at 5:51 PM

Anonymous said...

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January 4, 2013 at 4:51 PM

Anonymous said...

i found this blog very informative and useful to readers like me who wish to buy a secondhand car. Thank you Mam for taking time writting this. more power po!


Anonymous said...

Hi Miriam, first of all is that I would like to thank you for this blog. It is very informative


7 of 13 30-Jun-13 20:25

indeed and helpful. I wonder why aren't there many blogs out there similar to this. Itseems that buying used cars are being discouraged by banks. I plan to buy a used car.The bank approved of our loan and is on the stage of "processing" the car history. Thebank gave us the requirements to complete the loan but they advised us to hold unto ourhorses until we get a positive result from the car history. It's been a more than a weekalready and we haven't heard from the bank yet. By chance you would know what are thethings that the bank do to perform a car history? Because we paid around 8000. Anotherquestion I have is on the matching of the actual engine number of the car to that of whatis indicated in the OR/CR. later on I noticed that there is a slight difference between whatwas on the car engine and on the OR/CR.slight because it could have been a typo errorlike a digit on the engine number was written as number 1 instead of letter I on theOR/CR. Do you think this is something to be worried about? Many thanks

January 22, 2013 at 5:32 AM


Hi Anonymous, Have you checked it with the stencil of the car engine? Where you able toget a PNP clearance already [macro-etching]? If there is a discrepancy,that error needs tobe corrected.


Anonymous said...

Hi,i would like to thank for this blog. I've been searching about buying 2nd hand car.Firsttime ko lang po and i realy have no idea about buying cars or about cars. My husbandand i decided to buy with cash money on hand. Ask ko lang po what are we going to needor requirements to buy? From province we have to travel to manila. Thank you po.GodBless!

February 1, 2013 at 9:45 PM

Dante Espanto said...

hi mam miriam...thank you for your post i love reading those questions and answerportion...ako rin po ay isang baguhan na gustong bumili ng second hand cars, ang tanongko po ay masmaigi po ba kung cash na lang ang gagawin sa bayaran?anu po ang mgadapat kong gawin...maraming salamat po sa oras ninyo...godbless po

March 14, 2013 at 11:06 PM

Dante Espanto said...

Hi mam miriam salamat po at nagkakaroon ako ng idea sa mga post mo at mgakasagutan sa mga tanong nila...ako po ay baguhan di at gustong bumili ng second handcars, at balak ko ay cash ang bayaran. dahil dito anu po ang maipapayo nyo para magingsafe ang mga ganitong transaksyon...maraming salamat po

March 14, 2013 at 11:10 PM


8 of 13 30-Jun-13 20:25


Hello Mr. Espanto,Good day! If you follow the requirements here, you will be able to buy safely even ifthrough cash purchase.1) PNP Clearance - macro etching2) LTO Checking via text[initial checking]3) Make sure that the original LTO Certificate of Registration [CR] is not encumbered. Ifthey have the Cancellation of Chattel Mortgage issued by the Register of Deeds in theirarea of residence, Pag-usapan na lang ninyo who will pay for the LTO transfer. Pwedekasi isabay na yun transfer of ownership - submit ninyo yun Cancellation fo Chattel, Deedof Sale ninyo [notarized], IDs ninyo, original LTO CR dyan sa LTO Agency kung sanoriginally registered yun sasakyan.Note: Iba ang Release of Chattel Mortgage and Cancellation of Chattel Mortgage. YunRelease of Chattel Mortgage is given by the financing bank. Dadalhin pa ito sa Registerof Deeds para makakuha ng Cancellation of Chattel Mortgage.

March 15, 2013 at 7:55 PM


For those who want to buy a brand new auto vehicle, please visit my website athttp://www.auto-searchphilippines.com/It has a complete list of updated vehicle prices, brochures, pictures of vehicles here in thePhilippines. Each brand is handled by a reliable authorized brand sales executive. Ourgroup of sales executives/marketing professionals can assist you in your auto vehiclepurchase.

March 15, 2013 at 8:04 PM

Serge said...

To avoid buying a lemon car from any used car lot that you visit, be sure to always checkwhat's under the hood rather than just relying on what the car dealer mentions to you.

March 17, 2013 at 10:16 PM

Anonymous said...

Good day Miss Miriam. First of all I would like to thank you for answering all the questionswith clarity. You've been a big help especially for us who know little about purchasingnew/used vehicles. As for my question, I am buying a used car from a private seller. Hegot the car from his previous company (He resigned already. But the OR/CR is still underthe company's name. And he said that it will be less hassle if i just wait this coming Junefor the renewal of the vehicle and transfer it to my name at the same time. He said thevehicle is already fully paid from the company but he just havnt transferred it yet to hisname. The bank already approved me and they already appraised the car. He also saidhe will transfer the deed of sale to my name. The owner seems trustworthy. Any advice


9 of 13 30-Jun-13 20:25

on this? Thanks so much in advance and God bless you always.

April 9, 2013 at 12:42 PM

marifije said...

Hi Ms Miriam Barredo, many thanks to you for this blogsite; you provide relevant andcomprehensive advices to questions of mostly first-timers such as myself. it took meawhile to be able to find your website and i'm so blessed to have found it !!

i am selling my used car (i'm the second owner and is under my name) and would wish toknow what to advice the potential buyer/s regarding what other fees (if any) they mayhave to bear on top of the selling price. i came across a car dealer website stating thesequalifications: "The prices listed on the Website often exclude sales tax, finance charges,title, license, regulatory, dealer documentary, emission testing and compliance fees..."

would you be able to elaborate on each item on the above list? e.g. how much sales tax?how many percent? what are finance charges for? for the title, i remember when i wasbuying my used vehicle 3 years ago, the dealer adviced that the buyer normally dealswith the process of transfering the title, i had to fork out a few extra thousand bucks forthem to take care of it. would you know how much is the cost now? what fees areincluded and time frame involved in this process? "license, regulatory, dealerdocumentary, emission testing and compliance fees" what are these for and how much dothey cost?

i hope you can enlighten and educate me on the above. i just want to make sure i amable to inform my buyers with correct information and not short-change them.

thank you and hope to hear from you soonest ...

May 6, 2013 at 10:35 PM


Here is the link to the LTO FAQs page for Motor Vehicle Registrationhttp://www.lto.gov.ph/index.php/faqs/motor-vehicle-registration

May 9, 2013 at 4:50 PM


Motor Vehicle Related Transactions and fees at LTO - http://www.lto.gov.ph/index.php/services/mv-registration/104-new-initial-or-1st-time-registered-in-the-philippines

May 9, 2013 at 5:02 PM


PNP Services including Macro-Etching - http://pnp.gov.ph/portal/citizens%20charter


10 of 13 30-Jun-13 20:25

/CLG%20Services.pdf

May 9, 2013 at 5:06 PM

Geary Heath said...

Thank you for your post Mam. It is hard to trust anyone this days specially purchasing preowned autos. Godbless and may your blog help more people.

May 30, 2013 at 9:57 PM

used land rover Yorkshire said...

There are so many things before and after buy a used car. But am glad I think I found agood used car dealers and they did everything. Am just enjoying my car from that day.But thanks for this post for everyone.

June 3, 2013 at 6:15 AM

Gauche said...

Hello Ms. miriam,I am an OFW and I want to buy a 2nd hand car, and we are trying tosearch thru Internet only.. Is it safe to buy from ayos.ph or we need to let somebody go toautomall in pasay? Is it better to buy on cash or thru bank, I want an SUV preferablyHonda CRV but I dnt know if its ok because it's not diesel.. Pls help..Che

June 13, 2013 at 1:26 PM

Aj Rosalita said...

Hello Ms. Miriam! Delighted to know this guidelines. My question is if i want to purchase acar that is beyond 5 years already like a honda civic 2002 model and get it financed thru alending company. Does the guidelines still apply? Many thanks.

June 13, 2013 at 5:16 PM


Hello AJ Rosalita, Good daaaaay! Yes these guidelines apply to both cash and financingtransactions. Best regards,

June 16, 2013 at 3:47 PM


Hi Gauche, when in doubt about buying a Used Car, why not try buying a brand newvehicle instead? There are a lot of financing promos nowadays for brand new vehicles.Visit my webpages at http://www.auto-searchphilippines.com best regards,

June 16, 2013 at 3:50 PM


11 of 13 30-Jun-13 20:25

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Unknown said...

hello,,i am buying a second hand used car,the owner is died and the children are selling itto me..i am in doubt because they said i will still put their father's name as the vendor..canyou please give me an advice on how to do the deed of absolute sale?

June 18, 2013 at 2:38 AM


The children of the deceased father/ owner must submit their father's Death Certificate tothe LTO Agency.Registration of MVs Acquired through Extra-Judicial Settlement of Estate of DeceasedPersonRequirementsOriginal copy of the CR and the latest OR of payment of MVUC and other feesDeed of Extra-Judicial Settlement of Estate in case the Deceased is survived by two (2)or more heirs or Affidavit of Sole Adjudication if the deceased is survived by only one (1)heirProof of publication of the Deed in any newspaper of general circulation three (3) timesfor three (3) consecutive weeksDeath Certificate, Marriage Contract and or Birth Certificate as the case maybePNP-TMG MV Clearance CertificateConfirmation of CR/OR when the registering district office is different from the districtoffice that issued the CR/ORDuly accomplished and approved Motor Vehicle Inspection Report (MVIR)Appropriate Insurance Certificate of CoverCertificate of Emission Compliance (CEC)Taxpayer’s Identification Number (TIN)Procedure1. Proceed to the transaction counters and submit all the required documents to theEvaluator for evaluation and computation of fees.2. Actual inspection of motor vehicles with duly accomplished MVIR.3. Proceed to the Cashier when your name is called for the necessary fees and obtain anOfficial Receipt (OR).4. Proceed to the Releasing Counter when your name is called to obtain the Certificate ofRegistration (CR), plates, stickers, and other requested documents.

June 22, 2013 at 10:15 PM

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12 of 13 30-Jun-13 20:25

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