What does it mean to mortgage a car?
1 Answers
It means using the car as collateral for a loan. This car could be either purchased outright with a one-time payment or bought through installment payments that have already been fully repaid, making it a fully paid vehicle. Below are detailed explanations regarding car mortgages: 1. Regulations: Article 22 of the "Motor Vehicle Registration Regulations" clearly states, "When a motor vehicle owner uses the motor vehicle as collateral for a mortgage, they must apply for mortgage registration at the vehicle management office of the registration location." By 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," the process can be completed at the relevant counter, with official seals required for organizational entities. 2. Advantages of car mortgages: Quickly obtain cash for turnover without selling the car, avoiding the time and cost of repurchasing a vehicle when funds become available; No local household registration is required—ownership of the car is sufficient for mortgage loans; No lengthy appointments are needed—any legally compliant vehicle can qualify for a loan without upfront deposits, as long as the vehicle is legal and meets standards, eliminating cloned or assembled vehicles, with forensic inspection or police intervention if necessary; Flexibility—the vehicle can be retrieved immediately upon repayment without penalty fees when funds are recouped.
