Does the green book need to be given to the owner when buying a car in installments?
3 Answers
When buying a car in installments, the green book can only be given to the owner after the loan is fully repaid. Here is more relevant information: 1. Loss of motor vehicle registration certificate: To reissue a lost motor vehicle registration certificate, you need to go to any vehicle management substation for vehicle inspection and photography, and then collect it at the substation. The original ID card of the owner is required. Taking Beijing as an example, non-local residents need a temporary residence permit in Beijing. It can be obtained on the same day and cannot be handled by others. 2. The green book is in someone else's hands: First, the green book may be used by others to apply for a mortgage. Second, if the vehicle does not have a registration certificate, it is not allowed to be sold, and the transfer procedures cannot be processed normally, meaning only the right to use the vehicle is granted. Therefore, owners should be aware that the motor vehicle registration certificate of their vehicle should not be lent out casually. Otherwise, if others use it as collateral without informing you, it may cause more trouble for you.
When I first bought my car on installment payments, the finance company immediately took the title deed (green book) as collateral for the loan to ensure I wouldn’t sell the car midway and default. During the repayment period, I could still drive the car normally for commuting and weekend family trips without issues. However, if I wanted to transfer ownership or sell it, I had to fully settle the loan first. After two years when I finished all payments, I had to personally visit the bank to submit the repayment proof before they returned the title deed to me. Looking back, this arrangement was quite reasonable—it protected the lender’s interests while reminding me to repay on time to avoid extra fees or credit problems. If you’re buying a car in installments, don’t worry about the title deed; it’s just being securely held.
In the case of installment car purchases, the vehicle title (green book) is generally held by the lending institution, and the owner does not have access to it. This is to mortgage the vehicle and prevent the owner from improperly disposing of the car, such as secretly selling or mortgaging it to others, before the loan is fully repaid. I've seen this process many times—banks or auto loan companies will manage the title properly, so you don't need to worry about the risk of loss. As the owner, you can use the car normally, but remember not to ignore repayment reminders. After the loan is settled, you must proactively contact the lender to retrieve the document. Keeping the loan contract safe helps ensure a smooth transition to full ownership status, making future car sales or transfers hassle-free.
