Can a Mortgage Vehicle Be Transferred?
3 Answers
A mortgage vehicle cannot be transferred. Definition of a Mortgage Vehicle: Mortgage car purchase refers to a situation where the borrower applying to buy a car pays a portion of the down payment first, and the remaining amount is issued to the buyer in installments by the lender. Required documents include: original ID card, household register, or other valid residency documents, along with their copies; proof of occupation and economic income; car purchase agreement, contract, or letter of intent signed with the dealer; other documents required by the cooperative institution. Application Methods for Car Loans: To boost car sales, the government has partnered with financial institutions to launch personal car loan services. Currently, the financial market offers two main methods for personal car loans: property mortgage car loans (using property as collateral) and personal credit car loans.
I also encountered this issue when I bought my car before. I purchased it with a mortgage loan, and the vehicle certificate is still held by the bank. The salesperson at the 4S store told me that if the loan isn’t fully repaid, the vehicle absolutely cannot undergo title transfer or ownership change—otherwise, it will get stuck at the DMV and fail the review. I even specifically asked the bank, and they said I had to first pay off the loan to retrieve the vehicle certificate and then proceed with the formalities at the DMV. Later, I dutifully repaid the loan for a year before successfully transferring the title. Looking back now, it seems quite straightforward—definitely don’t try to force your way through, as it might lead to usage restrictions on the car. Safety first. Also, always check the status of your vehicle certificate during routine maintenance to avoid such hassles.
In my auto repair shop, I often see owners driving financed cars in for maintenance, always complaining that they can't transfer the title or change ownership. The key reason is that during the loan period, the car is mortgaged to the bank, and the title is held by the financial institution—you can't do anything about it yourself. To proceed, you must first go to the bank to pay off the loan early, obtain the repayment certificate to release the lien, and then visit the DMV to handle the transfer. I suggest not rushing to try random solutions, as any issues with the title could cause the transfer to fail and even affect the annual inspection. The most hassle-free approach is to patiently wait until the loan term ends.
