Can a Mortgaged Vehicle Be Transferred and Licensed?
2 Answers
A vehicle with an outstanding mortgage cannot be transferred or licensed. Here are some considerations when purchasing a car: 1. Inspect the new car: Conduct an external inspection of the vehicle, including the body paint and engine, as well as an internal inspection covering the mileage and audio system. Finally, carefully review the contract before signing, after which you can proceed to the vehicle management department for new car licensing. 2. Considerations for dealership licensing: If the dealership is responsible for licensing and handling insurance, you will also need to obtain from the salesperson the original insurance policy, insurance invoice, compulsory traffic insurance invoice, vehicle and vessel tax invoice, purchase tax invoice, tax payment certificate, and compulsory traffic insurance label.
Can a mortgaged vehicle be transferred and licensed? Generally, it cannot. This is because the vehicle has already been mortgaged to a bank or loan company as collateral. Under the mortgage status, the ownership is not completely free. Both transfer and licensing need to be processed at the vehicle management office, but the system there will show the mortgage record, and the staff will refuse to handle it. Unless the original owner repays the loan, obtains the mortgage release certificate issued by the bank, and then completes the release procedures, the vehicle can be normally transferred and licensed. Otherwise, if you buy such a vehicle, the transfer may be blocked, and the vehicle is still easily repossessed by the bank after licensing, which is too risky. It is recommended to check the vehicle registration certificate or inquire about the mortgage status through the vehicle management office APP before any transaction to ensure there are no disputes before proceeding.
