What does a mortgaged car mean?
1 Answers
It means using the car as collateral for a loan, where the car was either purchased with a one-time payment or through installment payments that have been fully repaid, making it a fully-paid vehicle. Relevant details are as follows: 1. Article 22 of the "Motor Vehicle Registration Regulations" clearly stipulates: When a motor vehicle owner uses the vehicle as collateral, they must apply for mortgage registration at the local vehicle management office. The process involves presenting the motor vehicle registration certificate, identification documents of the mortgagee and mortgagor, and filling out the "Motor Vehicle Mortgage/Cancellation of Mortgage Registration Application Form." For entities, an official seal is required to complete the process at the relevant counter. 2. Advantages of car mortgage: (1) Quick access to cash flow without selling the car, avoiding the time and cost of repurchasing a vehicle when funds become available. (2) No local household registration is required; as long as the car is owned by the individual, it can be used for mortgage loans. (3) No lengthy appointments are needed; any legally registered and compliant vehicle can qualify for a loan. No upfront deposit is required, provided the vehicle is legal, qualified, and free from issues like cloned plates or assembled vehicles. In necessary cases, forensic inspection or handling by public security authorities may be required.
