Can a Vehicle Be Transferred After Being Mortgaged?
2 Answers
No. Although a mortgaged vehicle can be purchased and used normally, the buyer does not have ownership rights over the vehicle, meaning it cannot be transferred. Below is a detailed explanation regarding auto mortgage loans: Overview: An auto mortgage loan is a loan obtained from financial institutions or auto consumer finance companies by using the borrower's or a third party's vehicle or self-purchased car as collateral. The primary purpose of using a vehicle as collateral for a loan is to facilitate quick capital turnover. Basic Requirements: Conditions and materials required for applying for an auto mortgage loan service: stable employment, ownership of the mortgaged vehicle by the applicant in the local area; long-term residence and work in the city where the service is provided; proof of occupation and economic income, vehicle registration certificate, driving license, additional purchase tax certificate, purchase invoice; ID card, etc.
I've encountered many similar situations when handling vehicle transfer procedures. Generally speaking, if a car has been mortgaged to a bank or other lending institution, it cannot be transferred at will. This is because the mortgage acts like a lock on the vehicle's ownership rights. Unless you first repay all debts and obtain the creditor's mortgage release certificate, the DMV won't allow you to complete the transfer process. I remember helping a friend with this once - he was in such a hurry to sell his car that he overlooked this detail and almost suffered significant losses. It took several months to finally resolve the issue. Never neglect this step, otherwise the transaction could be invalid and you might even face debt collection. Regularly checking the mortgage status on the vehicle registration certificate is crucial, especially when buying used cars - always verify the vehicle's history thoroughly to avoid potential risks.
