Can a car not under my name be mortgaged?
2 Answers
A car not under your name can be mortgaged as long as the vehicle owner agrees. Documents required for mortgaging a car: Identification proofs of the mortgagor and mortgagee; vehicle registration certificate; the principal contract and mortgage contract legally concluded by the mortgagor and mortgagee. The vehicle management department shall record the mortgage registration details on the vehicle registration certificate after acceptance. Forms of car mortgage: Currently, there are two types of car mortgage loans: mortgaging the car without the certificate and mortgaging the certificate without the car. Mortgaging the car without the certificate requires leaving the vehicle with the lending institution, making it unusable until the loan is repaid. On the other hand, mortgaging the certificate without the car only requires completing the mortgage procedures and then handing over the vehicle registration certificate to the lending institution. During the loan period, the vehicle can still be used, although this method usually requires installing a GPS tracker on the car. Whether to mortgage the car or not can be decided based on actual circumstances. If you have more than one car, have minimal need for the vehicle, or require a larger loan amount, you may opt for mortgaging the car. However, if you need the vehicle for daily use, it is advisable to choose the non-mortgage car loan option.
Having worked in the auto finance industry for many years, I deeply understand that the key to vehicle collateral loans lies in ownership. Simply put, if the car isn’t under your name, you generally can’t mortgage it alone because banks need to confirm you’re the legal owner before using the vehicle as loan collateral. If the car belongs to someone else, you must first obtain explicit consent from the owner—they may need to provide written authorization and co-sign the loan agreement. Otherwise, unauthorized actions could lead to legal issues, such as the innocent owner being dragged into lawsuits if the debt defaults. I once saw someone try to use a family member’s car for a loan without proper communication, resulting in the bank rejecting the application and damaging family relationships. My advice: if the car belongs to a friend or family member, don’t rush—involve them in the process or consider alternative financing options like unsecured loans to ensure transparency and safety.
