Can a Pledged Vehicle Be Used?

[AdelynFitz]

Pledged vehicles cannot be used. The pledgee has the obligation to properly safekeep the pledged property but does not have the right to use the pledged vehicle. Relevant information is as follows: Relevant Regulations: According to Article 431 of the Civil Code of the People's Republic of China, during the existence of the pledge, if the pledgee uses or disposes of the pledged property without the consent of the pledgor, causing damage to the pledgor, the pledgee shall be liable for compensation. Process for Reclaiming a Pledged Vehicle: About 10 working days after the last monthly installment of the car loan is deducted, the mortgage procedures can be completed at the bank handling the car installment payment to reclaim the vehicle; Prepare all the necessary documents for releasing the mortgage. These include the "Motor Vehicle Mortgage Registration/Pledge Application Form," the original and photocopy of the identity documents of the motor vehicle owner and the mortgagee, the motor vehicle registration certificate, and relevant documents for the release of the mortgage by court mediation, ruling, or judgment; Bring the above documents to the vehicle management office to complete the mortgage release registration procedures; Once the procedures are completed, the entire vehicle mortgage release process is finished.

[DelilahFitz]

A friend of mine had to pawn his car last year due to an urgent need for money, and he specifically asked about this. Generally speaking, a pawned car shouldn't be driven around. First, the car is already mortgaged to the creditor, and the ownership temporarily belongs to them—what's the deal with you driving it around? Moreover, legally speaking, Article 434 of the Civil Code states that the pledgee cannot use the pledged property. However, there are exceptions: for example, if the contract stipulates short-term use or both parties agree in an emergency. But be careful—if you drive it and get into an accident, who pays for the repairs? Even worse, it could be considered theft. So it's better to be honest and not touch it. Wait until you've paid off the debt and gotten the car back before driving it—that's the safer option.

[Troy]

During my last visit to the auto repair shop, I overheard the owner discussing pawned vehicles with a customer. He mentioned that during the pawn period, the car keys are held by the lending company, and the vehicle is locked in their parking lot. The logic is simple: the car serves as collateral, so what if you drive it away and don't repay the loan? Even if the lending company allows you to drive it, they take on risks—driving causes wear and tear, and in case of an accident, liability becomes harder to determine. However, he also mentioned some flexibility in special cases, like when the owner needs to visit the hospital for an emergency, they can sign a temporary agreement to use the car for two hours. For daily needs, he recommended using a ride-hailing app like Didi for peace of mind.

[Joanna]

Several car enthusiast friends I know have encountered similar situations. Whether a pledged vehicle can be driven depends on the contract terms, and mortgage contracts typically explicitly prohibit usage. After all, as collateral, the vehicle's value must remain stable, and driving it risks wear and depreciation. Insurance is another issue: if a car insured under the owner's name is driven by the pledge company, claims can easily lead to disputes. In reality, some small-scale mortgage companies with lax management might let you drive it away, which is actually against regulations. My advice is to avoid driving pledged vehicles whenever possible, both to protect the car and avoid legal risks.