Can a car not under my name be used for mortgage loans?
2 Answers
No, the license plate holder is the car owner, and the name on the car invoice must match the name on the license plate. In this case, the vehicle can be transferred: Situation 1: Vehicle transfer means changing the name of the vehicle owner. The required documents include the original owner's ID card, new owner's ID card, original and duplicate of the vehicle license, purchase tax certificate, vehicle and vessel tax payment certificate, motor vehicle registration certificate, motor vehicle criminal inspection form, insurance policy card, and invoice. All of these must be provided in original copies. Go to the vehicle management office and follow the procedures to complete the change. Situation 2: If it is a transfer between relatives, there are two methods: One is the transaction method, which still requires going to the motor vehicle trading market to complete the relevant procedures. The processing point can be the vehicle management sub-office under the ID card of the person involved or the transferor's ID card, but the transferor does not need to go in person. The other method is the gift method, where a gift notarization can be processed at the notary office, and the transfer registration can be completed with the gift declaration and notarization certificate. However, the notarization fee is charged as a percentage of the value of the gifted vehicle, which is generally higher than the cost of the transaction method.
Regarding your question, a car that is not registered under your name generally cannot be used as collateral for a loan. When reviewing applications, lenders strictly verify the ownership of the vehicle to ensure it is under the borrower's name, granting them the authority to use the asset as security. If the car is not in your name, lenders may perceive risks, such as the owner disputing the arrangement or potential ownership conflicts, which could lead to loan rejection or legal complications. As someone who frequently assists friends with auto loan matters, I consider this a fundamental principle—collateral requires full control over the asset. If you need funds urgently, you might explore alternative options, such as coordinating with the owner to transfer the title before applying or seeking other forms of collateral like savings or property, which offer higher security. Always remember to check the vehicle's registration documents beforehand to avoid wasted effort.
