What are the reasons for a vehicle being impounded?

[LincolnLee]

Vehicle impoundment is primarily a property preservation measure taken by the court upon application by involved parties, or an enforcement measure adopted during execution procedures. Impounded vehicles: An impounded vehicle refers to one prohibited by court order from undergoing registration, modification, transfer, mortgage release, deregistration, or pledge cancellation due to economic debt disputes or other reasons. Relevant regulations: According to Order No. 124 of the Ministry of Public Security, clear provisions are made regarding prohibited operations during court-ordered impoundment: registration, modification, transfer, mortgage release, deregistration, and pledge cancellation are prohibited during impoundment; whereas annual inspections, temporary license plates, and replacement of license documents are not restricted.

[Richardson]

A friend recently had his car seized, and upon inquiry, it turned out to be mainly due to debt disputes. If a car owner fails to repay a bank loan, such as missing several months of car loan payments, the bank can seize the vehicle through court action. Alternatively, if someone is sued for unpaid business debts, the court may also impound the car as part of asset preservation. Additionally, if the car was used as collateral for a loan and the borrower defaults, the creditor has the right to apply for seizure. Handling such matters is quite troublesome, as the debt issue must be resolved first before applying to the court for release. Therefore, car owners with loans should regularly check their repayment status to avoid such situations.

[LeLaila]

My cousin experienced this last year because his company was investigated for tax evasion, and the tax authorities directly seized all the company's assets, including three vehicles registered under the company's name. It's not just tax issues—traffic violations can also lead to seizure. For example, if someone causes a major accident while drunk driving, their vehicle may be impounded as evidence. In other cases, it could be the result of a court-ordered civil compensation that wasn't fulfilled, leading the victim to apply for compulsory enforcement. The most troublesome situation is when the owner isn't even aware of the reason—often, they suddenly find a court seal on their windshield after parking, and the only option is to visit the vehicle management office to inquire about the specific seizing authority.

[VonJayla]

The most common reason for vehicle seizure is financial issues. For example, when a car is used as collateral for a loan and the borrower fails to repay, financial institutions may apply for its seizure. Alternatively, if someone acts as a guarantor for a loan and the debtor flees, the guarantor's car may be seized. Another scenario is when the car owner is involved in fraud, and luxury cars purchased with illicit funds are naturally seized as proceeds of crime. Last time I visited the DMV, the staff at the counter mentioned they receive over a dozen seizure inquiries daily. They advised car owners, especially those who have taken out loans or acted as guarantors, to regularly check their vehicle's status.