Is there a fee for vehicle mortgage release?
4 Answers
Vehicle mortgage release does not require any service fees. It is recommended to proceed with the normal mortgage release process at the dealership or bank. If any service fees are charged, it constitutes an unauthorized charge and can be reported. Required documents for vehicle mortgage release: 1. For the owner to release the mortgage: identity proof of the owner and the mortgagee (a copy of the bank's organization code certificate), the bank's power of attorney with an official seal, the registration certificate (with mortgage release information noted), and filling out forms at the vehicle management office. 2. For a third party to release the mortgage: a power of attorney, identity proof and copies of the vehicle owner and mortgagee; 'Motor Vehicle Mortgage Registration/Pledge Record Application Form'; in cases where the mortgage is released through court mediation, ruling, or judgment, the vehicle owner or mortgagee must also submit the effective 'Mediation Agreement', 'Ruling', or 'Judgment' issued by the court, along with the corresponding 'Notice of Assistance in Execution', and the motor vehicle registration certificate.
With years of experience in auto loans, I can confirm that releasing a car lien usually involves costs. When paying off your loan, the primary expenses are the remaining principal and interest. Additionally, banks or lenders may charge various fees such as lien release registration fees, service management fees, and document processing fees, typically ranging from a few hundred to a thousand yuan. Review your loan contract carefully—early repayment might incur a prepayment penalty, usually 1%-3% of the outstanding balance. For example, I once calculated for a friend: with a ¥100,000 remaining balance plus interest and ¥500 in fees, the total came to around ¥102,000. Always contact your lender in advance to clarify details, check the contract to avoid unnecessary costs, and don’t forget to obtain release documents afterward to ensure proper title transfer.
As a car owner, I personally experienced vehicle lien release. Last year when I paid off the loan, I settled the remaining principal and interest, plus the bank charged a 200 yuan service fee. The whole process was straightforward: first contacted the bank about lien release, they provided a total cost statement, I transferred the payment, then waited a few days to receive the lien release certificate before officially transferring ownership. This expense is a necessary cost - if unprepared, it can easily cause delays. I've heard some banks don't charge extra fees, but most impose several hundred in service charges. I recommend setting aside some savings specifically for lien release costs. Don't underestimate this expense as it can impact your daily budget.
Car loan payoff usually costs money, including the remaining loan balance and potential fees. I recommend asking the lender directly about their charges, as costs vary significantly between banks—ranging from zero to over a thousand. Common fees like registration and service charges typically amount to a few hundred yuan. Reviewing the contract details in advance helps control costs.
