Can a Mortgaged Car That Cannot Be Transferred Be Purchased?
1 Answers
Mortgaged cars with debt transfer rights can be purchased. Cars with debt transfer rights are purchasable because, during the mortgage period, the original owner cannot fulfill their debt obligations, and the mortgage company has to dispose of the car at a low price. This is because mortgaged cars are not about a sale relationship but a debt transfer relationship. After a car is mortgaged, it temporarily belongs to the mortgage company. Without the cancellation of the mortgage agreement, even if the car is purchased, it cannot be transferred. Below is relevant information: Debt assignment is non-formalistic: Once the creditor and the third party reach an agreement on the assignment of the debt, the debt assignment contract is established. Except where laws and administrative regulations require approval or registration procedures, no special contract form is necessary. Whether the debt assignment contract is in written form does not affect its validity. For debts that already have debt certificates, the delivery of the debt certificate is required, but this act is part of fulfilling the collateral obligation rather than a condition for the establishment of the debt assignment. Debt assignment is abstract: Debt assignment arises from various reasons, possibly based on sales, gifts, or substitution of performance, but regardless of the reason and its validity, it does not directly affect the validity of the debt assignment contract. This is the abstract nature of the creditor's rights. The purpose of this abstract nature is to ensure the security of debt circulation and the interests of bona fide assignees.
