Is it advisable to buy a mortgaged car that cannot be transferred?

1 Answers
VanDerek
07/30/25 8:55am
It is not recommended to purchase a mortgaged car that cannot be transferred. Legally speaking, such a vehicle belongs to someone else, and it only becomes truly yours after the registration transfer is completed. Buying this type of car carries significant risks. Here is relevant information about mortgaged cars: 1. Car mortgage: If a car has been mortgaged, it means the ownership rights have temporarily shifted away from the original owner. Therefore, the original owner does not have the right to transfer a car that does not temporarily belong to them. In short, the mortgage must be fully paid off, the lien released, and ownership confirmed before the transfer can proceed. 2. Mortgage release: If the mortgage has been released, the car can be purchased; if not, there are risks. This means: if the original owner repays the loan on time, there is no issue; if they default, the car may be auctioned by the mortgagee to repay the debt, and the buyer cannot refuse the auction.
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