Can a Car Be Transferred After Being Mortgaged?
2 Answers
A car cannot be transferred after being mortgaged, as the mortgage only involves the right to use the car, not the ownership. Below are some precautions to consider when purchasing a mortgaged car: 1. Source of the Mortgaged Car: Ensuring the mortgaged car comes from a legal and legitimate source is fundamental to protecting your own interests. 2. Documentation of the Mortgaged Car: This includes the car's age, vehicle registration certificate, etc. Additionally, the seller should provide copies of the owner's ID card and other relevant documents. The buyer should verify these documents to ensure their authenticity, which can significantly reduce risks. 3. Type of Mortgage: It's important to distinguish whether the car is mortgaged to a bank under a loan agreement or to a lending institution, as the two scenarios differ. If the owner sells the car before fully repaying the bank loan, it is strongly advised not to purchase it, as failure to make timely payments could lead the bank to apply for the car's auction, resulting in significant financial loss for the buyer.
I have delved deeply into the issues of vehicle mortgage and transfer. Once a car is mortgaged to a bank or other lending institution, the ownership is restricted, and you cannot freely transfer it to someone else. The reason is that during the mortgage period, the creditor has priority rights. If you transfer the ownership without their consent, it is legally invalid and may lead to serious disputes. In practice, if you want to sell the car, the buyer must either pay off the remaining balance or take over the debt; otherwise, the vehicle management office will refuse to process the transfer. This stems from regulations designed to protect creditors and prevent the spread of risks. I personally encountered a similar case where a friend attempted to privately transfer a mortgaged car, only to be pursued by the bank and suffer significant financial losses. Before proceeding with a transfer, it's best to consult a professional to ensure all procedures are compliant.
