Can a Car on Installment Plan Still Get a Loan?
1 Answers
A car on an installment plan cannot be used for a mortgage loan. Relevant details are as follows: Reasons why it cannot be mortgaged: Because the car was purchased through an installment loan, it has already been mortgaged once during the installment process. The vehicle registration certificate cannot be used for a second mortgage. The individual does not have ownership of the car while it is on an installment plan, and the lending institution for the installment will also hold the vehicle registration certificate. However, a bridging loan can be obtained, meaning the car loan is paid off first, and then the car can be mortgaged. Payment methods: The automotive industry offers various forms of installment payments, mainly three: bank consumer loan method; car manufacturer financial company loan method; and financial leasing method.