What does it mean to have the car title held for three years when buying a car?
1 Answers
When the car title is held for three years, such a vehicle falls under the category of mortgaged car procedures. Below is a related introduction to car mortgages: 1. Definition: A car mortgage loan is a loan obtained from a financial institution or auto consumer finance company using the borrower's or a third party's car or self-purchased vehicle as collateral. The primary purpose of using a car as collateral is for quick capital turnover. 2. Considerations: Most car mortgage loans follow the principle of 'mortgaging the documents but not the car,' meaning that you can obtain the loan by mortgaging the relevant documents of your car to the lending institution, while the car can still be used normally after installing a GPS. Therefore, before proceeding with the mortgage, it's advisable to first understand whether the car mortgage requires the car to be held as collateral, which can help avoid institutions that require the car to be held.