What does a mortgaged car mean?
1 Answers
A mortgaged car refers to the property provided by the car owner as collateral to financial institutions for raising funds through loans. If the car owner fails to fulfill the debt, the financial institution has the right to auction or sell the property at a discounted price in accordance with the law, with priority given to repayment from the proceeds. A non-full payment mortgaged car means the vehicle is still under mortgage status with the vehicle management office and the bank. Risks of mortgaged cars: Many mortgaged car trading platforms cannot guarantee the legitimacy of the vehicle's source. If the mortgaged car comes from an illegitimate source or is a stolen vehicle, significant troubles may arise later, including vehicle confiscation and potential criminal liabilities. Categories of mortgaged cars: Purchasing a car through mortgage loans. In this case, the lender is usually designated by the 4S store, including bank loans and auto financial loans. Bank loans involve the bank as the lender, with the vehicle mortgaged to the bank; auto finance typically refers to the car manufacturer's own financial company, with the vehicle mortgaged to the manufacturer. Documents required for purchasing a mortgaged car: The original or color copy of the vehicle pledge loan agreement signed by the car owner, the vehicle registration certificate, a copy of the car owner's ID card, and the vehicle transfer agreement. The more complete the remaining debt agreements and vehicle-related documents are, the better, as these documents are fundamental for protecting one's rights in the future.
