Can a mortgaged car that cannot be transferred be purchased?

[ColtonLynn]

Mortgaged cars that cannot be transferred should not be purchased as it is illegal. Here is the relevant information: 1. Mortgaged cars: When a motor vehicle is used as collateral, it is referred to as a mortgaged car. During the mortgage period, if the original owner fails to fulfill their debt obligations, the mortgage company may sell the car at a low price. The transaction involving a mortgaged car is not a sale but a transfer of debt rights. After the vehicle is mortgaged, it temporarily belongs to the mortgage company. Without the cancellation of the mortgage agreement, even if the vehicle is purchased, it cannot be transferred. 2. Relevant regulations: Not all mortgaged cars are illegal. Illegal mortgaged cars refer to those still under mortgage with the vehicle management office and the bank. If the owner sells such a car privately, it cannot be purchased and is illegal.

[FrankLynn]

If a mortgaged car cannot be transferred to your name, I personally advise against buying it lightly because the risks are too high. Although the price might be extremely low, the core issue is that ownership is legally unclear—the original owner still owes the bank money, and the car is essentially collateral. I know a friend who bought one cheaply, only for the bank to repossess it shortly after, claiming the original owner hadn’t repaid the loan. He wasted money on repairs and nearly got into legal trouble—total hassle. If you must buy, ensure the debt is resolved, like checking the loan status and the original owner’s credit, but this isn’t something an average person can handle; you’d need a professional lawyer or bank to verify. In short, for peace of mind, buy a normal car—safety first, don’t lose sight of the bigger picture for small gains.

[Erick]

I've seen many people get badly burned by buying mortgaged cars, and I really don't recommend touching them. The inability to transfer ownership means the vehicle title is still locked with the bank, and buyers can't obtain the original owner's ID. If the original owner defaults on the loan, financial institutions have the right to repossess the car, leaving you with neither money nor the vehicle. I've researched this scenario before—for example, in the used car market, suspiciously low-priced cars often have issues. Always check if the documents are complete and look for mortgage markings on the registration certificate. If you still want to proceed, consult an expert to assess the risks first; don't just jump at a cheap price. Also, consider potential hassles like difficulty obtaining insurance, registration roadblocks, or even debt collectors chasing you. In life, it's much more worry-free to buy a car through legitimate channels—don't gamble your hard-earned money on luck.

[LaTimothy]

From a legal perspective, buying a mortgaged car that cannot be transferred is a major pitfall. Without the transfer of ownership, the buyer can only use the vehicle but cannot obtain legal protection. If the original owner defaults on the loan, the car may be repossessed, leaving the buyer with no recourse for compensation. In similar cases, buyers might even get entangled in debt disputes. I recommend avoiding such deals and prioritizing vehicles without disputes or ensuring all debts are cleared before the transaction. The foundation of safe driving is clear vehicle ownership—otherwise, you won't sleep soundly at night.

[Genevieve]

Mortgaged cars are tempting with their low prices, but the transfer issues hide risks. I've learned that such cars can sell for half the price, making buyers feel they've saved a fortune, but the actual costs are high—like whether to repair them or not. The bank could repossess them at any time, wasting money on maintenance; if stopped by authorities, fines pile up due to incomplete paperwork. It's best to first check the mortgage status and seek professional help to resolve the debt, though the process is lengthy. A simpler strategy is to opt for regular used cars—more expensive but worry-free, avoiding the pitfalls of cheap deals that drain your wallet and time.