What does a pledged vehicle mean?

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Pledged vehicles, also known as mortgaged vehicles, are special vehicles that cannot be transferred but can undergo normal annual inspections and have insurance purchased. They typically result from overdue private loans being sold off, car installment payments being overdue and repossessed by companies, or court-ordered auctions. Below is a relevant introduction: 1. Pledged Vehicle: This refers to the immovable property collateral provided by the car owner to financial institutions when they urgently need cash for a loan. If the car owner fails to fulfill their debt, the financial institution has the right, in accordance with the law, to offset the debt with the property or to prioritize compensation through auction or sale of the property. 2. Extended Information: The sources of mortgaged vehicles are divided into two types. One type comes directly from state-recognized investment companies, guarantee companies, or pawnshops, while the other type involves loans from private financial companies with the vehicle as collateral. Generally, it is not advisable to purchase a mortgaged vehicle during the mortgage period or before the debt is fully settled, as this may entail risks.