Can a vehicle with expired mortgage be purchased?
2 Answers
Mortgage-expired vehicles can be purchased if the mortgage is released. The methods for releasing the mortgage and the characterization of selling mortgaged vehicles are as follows: Methods for releasing the mortgage: To release the mortgage on a mortgage-expired vehicle, an application for mortgage cancellation should be submitted to the vehicle management office at the registration location. The vehicle owner must provide valid credentials when canceling the mortgage. If the vehicle has not been seized or detained by the People's Court, People's Procuratorate, or administrative law enforcement agencies, and the mortgage has been released, the buyer can proceed with the purchase after understanding the vehicle model and other details. Characterization of selling mortgaged vehicles: If the borrower fails to repay the loan, the bank does not immediately apply for vehicle auction but first demands repayment of the loan and interest from the borrower. If repayment is not received, the bank will apply for vehicle auction after the mortgage expires. Of course, the auction can only proceed after the court accepts the application.
In theory, you can buy a car with an expired mortgage, but you must first confirm whether the loan has indeed been fully repaid. I once almost bought a used car that was claimed to be released from mortgage at a temptingly low price, only to later discover through checking the loan records that the seller was being dishonest—there were still tens of thousands unpaid to the bank. If the loan isn't cleared, you won't be able to transfer ownership, and you might even face debt collection from the lending company. For safety, I recommend asking the seller to provide bank repayment proof or using a used car platform's loan-checking feature (some apps offer this). If you're still unsure, bring a knowledgeable friend to inspect the car. Don't be afraid of the hassle—I've seen too many cases where small gains lead to big losses. Taking the time to verify everything is far better than suffering heavy losses later.
