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. Subsequently, the borrower only has the right to use the car but not the right to dispose of it. Only after all loans, including the principal and interest, are fully repaid will the ownership of the car be returned to the owner. Therefore, a car under mortgage cannot be transferred or sold. Below are the precautions for transferring a used car: Legitimacy of the title: The embossed number, engine number, and registration date on the title are key points that require special attention. In addition to verification, it is also necessary to check for any signs of alteration, as such signs may indicate a transaction trap. Check for traffic violations: Before transferring a used car, it is essential to check whether the vehicle has any traffic violations and whether it is within the validity period of the compulsory traffic insurance. Only vehicles with no traffic violations and within the insurance validity period can be transferred. Generally, vehicles with violations cannot be transferred until the violations are resolved. Presence of vehicle purchase tax payment receipt: When transferring a used car, it is important to check the original tax receipt of the car. Some cars may not have paid the purchase tax, and after the transfer, these unpaid or tax-exempt vehicles may be required to pay the purchase tax, which can be a significant expense. Therefore, it is crucial to determine who will be responsible for paying the tax.
