Can a Car Under Mortgage Loan Be Sold?

[HarrisonRose]

A vehicle under mortgage cannot be traded or sold, nor can its ownership be transferred. Below are the relevant details: 1. Unable to Trade: A car under mortgage is pledged to the bank, meaning it lacks clear ownership rights and thus cannot be traded. The mortgage must be fully paid off, and the lien must be released (processed by the bank at the vehicle management office) before any transaction can occur. 2. Cannot Transfer Ownership: Ownership transfer requires the vehicle's registration certificate, which is held by the bank or financing company until the loan is fully repaid. Unless the buyer is willing to pay off the remaining loan in advance to retrieve the registration certificate, the transfer process cannot proceed.