Can a Financed Car Be Transferred?
2 Answers
A car under mortgage cannot be transferred. When applying for an auto loan, the ownership of the car has already been transferred to the lending institution. In the future, you will only have the right to use the car, not the right to dispose of it. Only when all loans, including the principal and interest, are fully repaid, will the ownership of the car be returned to you. Below are the types of transfers introduced: Transfer from individual to company: Vehicle license, registration certificate, body invoice, seller's ID card, seller goes to the DMV to take photos, vehicle annual inspection without violations, company organization code certificate copy with official seal (2 copies), application form with official seal, blank paper with official seal. Transfer from individual to individual: Vehicle license, vehicle registration certificate, vehicle purchase tax certificate, road maintenance fee receipt, insurance policy, vehicle and vessel use tax certificate, ID card.
My neighbor just went through this. He bought a used Camry, and the seller claimed there was a loan but assured him the transfer could go through. However, when they went to the DMV, it was rejected because the car was still under a mortgage lien. After checking the details, he learned that the ownership of a financed car remains with the bank. To transfer it, the loan must first be paid off, and a mortgage release document from the bank must be obtained. Otherwise, the title is incomplete, and the DMV won’t approve the transfer. This ordeal took my neighbor about a month to resolve, and it was only settled after the seller repaid the loan. A reminder to everyone: Before buying or selling a financed car, always confirm whether the loan has been cleared or the transfer procedures have been properly handled. Don’t trust verbal promises—check the mortgage notation on the registration book to avoid being scammed or stuck with debt.
