What does 'fully paid but not released from mortgage' mean?
2 Answers
Fully paid but not released from mortgage means the vehicle is still in a mortgaged status. Dealers mortgage their inventory vehicles to banks for financing purposes. If you purchase the vehicle in full payment, you can proceed to the bank to complete the release of mortgage after paying the money—this is actually handled by the dealer, though sometimes the owner may be asked to accompany. If you buy the car with a loan, the mortgage will only be released after the final payment is made. Below are the requirements for those who want to buy a car with a loan: 1. Age: The buyer must be at least 18 years old and a Chinese citizen with full civil capacity. 2. Assets: The buyer must have a relatively stable job and a steady income or possess assets that are easily liquidated to ensure timely repayment of the loan principal and interest. Easily liquidated assets generally refer to securities and gold/silver products. 3. Guarantee: Provide a guarantee recognized by the bank. If the buyer's household registration is not local, they must also provide joint liability guarantee. The bank does not accept the mortgaged vehicle purchased with the loan as collateral.
I've purchased several cars and have firsthand experience with unpaid full loan releases. It refers to when you've already paid off the entire auto loan but haven't completed the mortgage release procedures. I learned this the hard way when buying my first used car—after paying, I thought everything was settled, only to hit a snag during the resale transfer process. Upon inquiry, I discovered the car was still registered under the bank's name. To release the mortgage, you need to visit the DMV or lending institution to fill out forms and get them stamped, fully transferring ownership back to yourself. Failing to do this carries significant risks, such as potential buyers being wary or complications arising from accident claims. My advice is to contact your lender promptly after purchase, bring your repayment proof and ID to the DMV, and avoid delaying until problems arise like I did. Pay attention to these details in daily car use to prevent future hassles.
