Can Original Mortgaged Vehicles Be Purchased?
2 Answers
In addition to vehicles with expired mortgages auctioned by the court, other situations are not recommended for purchase. Mortgaged vehicles are essentially loan vehicles, which can be divided into the following two scenarios: 1. Scenario one: Vehicles mortgaged to a bank for installment payments. 2. Scenario two: Vehicles mortgaged to individuals or companies for loans. Below is an introduction to relevant content: Actual situation: The legality of purchasing a mortgaged vehicle depends on the actual circumstances. If the mortgage has been lifted and there is a thorough understanding of the vehicle's condition, it can be purchased. If the mortgage has not been lifted, purchasing it may entail certain risks in the future.
As a law firm, we frequently handle such cases. Purchasing an originally mortgaged vehicle carries legal risks due to unclear ownership, as the vehicle title is still held by the bank or financial institution. Buying such a car is like purchasing a ticking time bomb—the original owner might default on payments at any time, leading to the vehicle being impounded or repossessed, rendering your investment worthless. Additionally, these vehicles cannot undergo ownership transfer procedures, making them highly susceptible to being seized by traffic police during routine checks. Unless you're well-versed in property law procedures and have professional oversight, I strongly advise against it. Opting for a certified used car might cost an extra ten or twenty thousand, but the peace of mind it brings is invaluable. Why drive in constant worry?
