Can a Mortgaged Vehicle Be Transferred?
2 Answers
A mortgaged vehicle cannot be transferred because once the vehicle is mortgaged, it means the ownership of the vehicle temporarily no longer belongs to the original owner. In other words, the vehicle is no longer the property of the original owner, so the original owner does not have the right to transfer the vehicle. Although a mortgaged vehicle cannot be transferred, the owner can still use it. As long as the debt is clear, the vehicle can undergo normal annual inspections and be driven on the road. The main risks of purchasing a mortgaged vehicle come from those that are illegal. Therefore, when buying a mortgaged vehicle, it is essential to pay attention to the source and method of the mortgage to avoid purchasing an illegal vehicle.
Can a mortgaged vehicle be transferred? It depends on the mortgage status. Simply put, if the vehicle is mortgaged as loan collateral, you cannot transfer ownership at will before repaying the loan in full. You must first contact the lender, settle the outstanding amount, and obtain a mortgage release certificate. Then, bring the relevant documents to the DMV to complete the transfer. Otherwise, the transfer will be blocked, the sale will be invalid, and it may even lead to legal disputes. I've helped a friend deal with a similar situation and found that buyers often neglect to check the vehicle's records, resulting in failed transactions and losses. So, whether selling or buying a mortgaged car, always verify the loan status in advance to minimize risks. Remember, safety first—don't cut corners and invite bigger troubles.
