Are There Still Risks in Buying a Car After the Mortgage Is Released?
2 Answers
If the mortgage has been released, you can buy the car; if not, there will be risks. The specific reasons are as follows: 1. If the original owner repays the loan on time, there will be no issue with the purchase; if the original owner fails to repay the loan on time, the car may be auctioned by the mortgagee to repay the debt, as the car legally does not yet belong to the buyer. In such a case, the buyer can only demand the original owner to return the purchase money and cannot refuse the auction. 2. Private contracts: If the mortgage contract is signed privately and not registered with the vehicle management office, the mortgage is invalid. The buyer can purchase the car but should request the transfer of ownership. A timeframe for completing the transfer can be stipulated in the contract, but the transfer must not be skipped. Without the transfer, the buyer cannot obtain car insurance. Driving without compulsory insurance will result in inspection and penalties.
I also bought a second-hand car that had been released from mortgage before, and I'm still driving it now. After the mortgage is released, it can indeed be transferred normally, but there are a few pitfalls to watch out for: First, you must verify the original mortgage release certificate from the DMV—don't trust verbal promises. I personally went to the DMV to check the records and found out that the previous owner had secretly replaced all the tires with off-brand ones. Secondly, such cars might have been used roughly. On the day I picked up the car, I noticed abnormal noises from the shock absorbers, and later had to replace the entire set, which cost over 4,000 yuan. Also, you need to clarify any debt disputes. A friend of mine bought a car, and right after the transfer, the previous owner's creditors came forward claiming the car had been pledged, leading to a long dispute. In short, the release of the mortgage doesn’t mean everything is fine—you need to spend time inspecting the car and checking the records. It’s best to bring a knowledgeable mechanic to inspect the chassis.
