What are the risks and precautions of buying a mortgaged car?
1 Answers
The risks and precautions of buying a mortgaged car are as follows: 1. Risks: A mortgaged car is not a purchase-sale relationship but a transfer of creditor's rights. After the vehicle is mortgaged, it temporarily belongs to the lending institution. Without canceling the mortgage agreement, the vehicle cannot be transferred even if it is purchased. Therefore, the buyer only has the right to use the car but not ownership. Additionally, a comprehensive inspection of the vehicle is necessary to check for any damage to the internal hardware beyond the exterior. 2. Precautions: When purchasing a mortgaged car, inspect the vehicle's condition, including mileage, age, and overall state. Avoid buying mortgaged cars that have been involved in accidents.