Can a Mortgaged Car Be Sold?
2 Answers
Mortgaged cars can be bought and sold, but their ownership cannot be transferred. Chinese law clearly stipulates that mortgaged vehicles can be traded, but the transfer of ownership is not permitted. Therefore, purchasing a mortgaged car does not grant ownership rights, only the right to use it. Relevant information about vehicle ownership transfer is as follows: Introduction: Vehicle ownership transfer refers to the change of the vehicle's owner's name. When buying a used car, besides checking the car's condition, the most important step is completing the ownership transfer procedure. Principle: Every car has a fixed registration, which primarily records the car's owner and address, along with some related car parameters. Transferring a car's ownership proves that the car belongs to the new owner and has no accident or violation records. If the car has issues, such as being involved in an accident, failing the annual inspection, being stolen, or being smuggled, the ownership cannot be transferred through normal procedures.
I've heard plenty about car mortgages. After years of helping people inspect vehicles at dealerships, I can say you generally can't sell them directly because lenders like banks place a Lien on the Title, meaning the debt is still attached. To sell, you must first pay off the loan to get a clean Title; otherwise, the buyer can't transfer ownership. Some buyers think they're getting a bargain with a mortgaged car, only to have it towed away on the road—what a headache. I recommend negotiating a payoff plan with the lender or hiring a professional intermediary to handle the debt transfer, though the process can be tedious. Bottom line: don't rush into a deal until everything's settled to avoid lawsuits or financial losses.
