Can a Mortgaged Car Be Purchased?
2 Answers
If the mortgage has been lifted, you can safely purchase the mortgaged car; if the mortgage has not been lifted, it means the ownership of the car does not temporarily belong to the owner, and it cannot be purchased. When buying a mortgaged car, pay attention to who holds the ownership of the vehicle, whether the vehicle can be transferred at the vehicle management office, and whether there are any outstanding loans on the vehicle. Mortgaged cars are divided into fully paid mortgaged cars and non-fully paid mortgaged cars. A fully paid mortgaged car must meet one of the following conditions: 1. The car was purchased with a one-time payment; 2. The car was bought through installment payments, the payments have been completed, but the owner is unwilling or unable to repay the financial company and does not cooperate with the transfer, leading the financial company to legally transfer the debt. A non-fully paid mortgaged car refers to a car that is still under mortgage with the vehicle management office or bank when sold.
Mortgaged cars are not absolutely impossible to buy, but from my experience, the risks are quite high. Ownership often still lies with the bank or lending institution, and before the mortgage is lifted, the seller has no full authority to handle the car. I've seen cases where buyers happily drove the car home, only to have it repossessed within weeks, losing both the money and the car. The key issue is that the debt hasn't been cleared, and buying such a car might mean inheriting someone else's liabilities. Before purchasing, you must check the vehicle's registration certificate to see if the mortgage status has been cleared; require the seller to provide a settlement certificate or go together to the institution to complete the release procedures. Otherwise, the risk is too high, and I wouldn't recommend trying it casually, especially when buying from private sellers—seeking bargains might lead to losses. Reputable used car platforms are somewhat better, but you still need to confirm the vehicle's history is clean and safe.
