Can a Vehicle License Be Used for Loans?

[McKeira]

A vehicle license cannot be used for loans. Below is an introduction about the vehicle license: Introduction: The Motor Vehicle License is the legal document permitting a motor vehicle to drive on roads within China. The license consists of three parts: the license holder, the main page, and the supplementary page. The front of the main page contains the endorsed certificate core, while the back features a photo of the vehicle, sealed in a plastic cover. The supplementary page is also an endorsed certificate core. Notes: Even if a car owner purchases motor vehicle insurance when buying a new car, some insurance items only take effect from the date the vehicle is registered and the "Motor Vehicle License" is obtained. The "Motor Vehicle License" is an important document recognized by Chinese laws and regulations, playing a significant role. Motor vehicle drivers must highly value it to protect their legitimate rights and interests from being infringed.

[LaEmily]

My relative recently used their car title to secure a loan, but it depends on the situation. Legitimate banks do accept vehicle registration certificates for auto-secured loans, but they have quite a few requirements: the car must be registered under the borrower's name, not previously mortgaged, and generally no more than 8 years old. My cousin's five-year-old Corolla got 70% of its appraised value at ICBC, but they also checked his credit history and salary records. If you want a quicker process, financing companies can disburse funds the same day, but the interest rates are shockingly high. Just a heads-up: during the mortgage period, the DMV will annotate the green title, and if payments aren't made on time, they really will repossess the car!

[BarrettLee]

This is a common question at repair shops. Actually, you need three things: the vehicle license, registration certificate, and compulsory traffic insurance policy. Just last week, I helped a ride-hailing driver with this process. His Toyota Levin was appraised at 90,000 yuan, and he borrowed 52,000 yuan by pledging it to a finance company. It's important to note that modified vehicles can affect the appraisal value. I've seen cars covered in cartoon stickers get their value reduced by 30%. Interest rates typically range from 1.5% to 2.5% per month, and there are penalties for early repayment. By the way, don't believe those zero-interest ads—they just spread the fees into the monthly payments.

[VanGavin]

My uncle worked in a pawnshop for ten years. He said there are two ways to borrow money using your car as collateral: quick car pawn where your car is parked in their lot and you get cash on the spot, but you have to pay monthly parking fees; or slower document pawn where you keep driving the car but must install a GPS tracker at your own expense. The craziest case he handled was someone driving a GPS-tracked car to Macau, triggering an alarm that remotely locked the engine. It's an option for urgent cash needs, but miss three monthly payments and your car goes straight to auction.