What Does a Mortgaged Vehicle Mean?
1 Answers
Mortgaged vehicle refers to the real estate collateral provided by the vehicle owner to financial institutions when they urgently need cash. If the owner fails to fulfill the debt, the financial institution has the right to auction the property at a discounted price according to the law, with the proceeds from the sale being prioritized for repayment. A non-full payment mortgaged vehicle means the vehicle is still under mortgage status with the vehicle management office and the bank. Risks of mortgaged vehicles: Many mortgaged vehicle trading platforms cannot guarantee the legitimacy of the vehicle's source. If the mortgaged vehicle comes from an illegitimate source or is a stolen vehicle, it may lead to significant troubles later, including vehicle confiscation and potential criminal liability. Categories of mortgaged vehicles: Purchasing a vehicle through a mortgage loan. In this case, the lender is usually designated by the 4S store, divided into bank loans and auto finance loans. A bank loan means the bank acts as the lender, with the vehicle mortgaged to the bank; auto finance generally refers to the manufacturer's own financial company, with the vehicle mortgaged to the manufacturer. Documents required for purchasing a mortgaged vehicle: The original or color copy of the vehicle pledge loan agreement signed by the owner, the vehicle registration certificate, a copy of the owner's ID card, and the vehicle re-pledge agreement. The more complete the remaining debt agreements and vehicle-related documents are, the better, as these files are fundamental for protecting one's rights in the future.
