Can a Financed Car Be Transferred?
1 Answers
It is not possible to transfer ownership of a car that is still under a mortgage. When applying for an auto loan, the ownership of the car has already been transferred to the lending institution. During the loan period, the borrower only has the right to use the car but not the right to dispose of it. Only after the entire loan, including both the principal and interest, is fully repaid will the ownership of the car be returned to the borrower. Therefore, a car under mortgage cannot be transferred or sold. Below are the relevant materials required for releasing the vehicle from mortgage: "Vehicle Registration Certificate"; original "Motor Vehicle Mortgage Registration/Pledge Record Application Form" with the lender's official seal; identification documents and copies of both the vehicle owner and the lender; the lender's power of attorney without an official seal. The process for releasing the mortgage after repaying the loan: After repaying the final installment of the auto loan, contact the lending bank within about ten working days to obtain a loan settlement certificate, and retrieve the "Vehicle Registration Certificate" and the purchase invoice that were mortgaged at the bank.