What does it mean to release a mortgaged vehicle?

[VonColin]

Releasing a mortgaged vehicle refers to the process of deregistering the mortgage on a vehicle purchased with a mortgage loan, which means removing the mortgage registration at the vehicle management office for a vehicle whose mortgage has been discharged. Below are two methods for releasing a mortgaged vehicle: Owner-initiated mortgage release: The owner needs to provide their identity proof and that of the mortgagee (a copy of the bank's organizational code certificate), a power of attorney from the bank with an official seal, and the vehicle registration certificate (which must include the mortgage release endorsement), then fill out the forms at the vehicle management office. Third-party authorized mortgage release: The third party must provide an authorization letter, identity proofs and copies of both the vehicle owner and the mortgagee; the "Motor Vehicle Mortgage Registration/Pledge Filing Application Form"; in cases where the mortgage is released through court mediation, ruling, or judgment, the vehicle owner or mortgagee must also submit the legally effective "Mediation Agreement," "Ruling," or "Judgment" issued by the court, along with the corresponding "Notice of Assistance in Execution" and the vehicle registration certificate.

[DelBriella]

I'm quite familiar with the process of releasing a car from mortgage! Essentially, when you take a loan from a bank to buy a car, the vehicle is mortgaged. Once the loan is fully repaid, you need to complete a procedure to remove the mortgage status of the car. This process is called mortgage release, and the key step is to eliminate the bank's mortgage record from the vehicle registration certificate (green book) at the DMV. Last month, I just helped a friend with this. He first needed to obtain the loan settlement certificate and the mortgage cancellation application from the bank, then drive to the DMV with his ID. The counter process is quick, and the mortgage release stamp can be affixed to the green book on the spot. Remember, the car can only be freely traded after the mortgage is released. Otherwise, the car will always carry the bank's mortgage mark, and potential buyers would be hesitant to take it!

[SanDiana]

Simply put, it's about setting your car free! When you bought the car with a loan, it was essentially used as collateral for the bank. After paying off the loan, you need to remove this lien. There are three key steps: 1. Retrieve the vehicle title and loan clearance documents from the bank; 2. Drive to the DMV with your ID; 3. Fill out forms to complete the lien release registration. I've seen many people procrastinate because they find it troublesome, only to be shocked when trying to sell the car later—if the lien record isn't cleared from the title, used car dealers will immediately knock off 20,000 to 30,000 yuan. Nowadays, some banks allow online applications and mailing of documents, but the final lien release procedure still requires a trip to the DMV. Remember, the entire lien release process is free—don't get scammed by middlemen!

[Campbell]

Removing the mortgage is like taking off the tight curse on your car! The car you bought with a loan is technically the bank's property, and you must release the mortgage binding after paying off the loan. The process is simple: the bank will send you a mortgage release document package, and you just need to take the documents and drive to the DMV when you have time. After the staff stamps the mortgage release on the green title, the car truly and completely belongs to you. My neighbor learned this the hard way—they thought it was over once the loan was paid off, but two years later when selling the car, they found the mortgage status on the green title hadn’t been released. Nowadays, used car platforms check this during inspections, so it’s recommended to complete the process within three months after paying off the loan. Only after removing the mortgage can the car be legally transferred or modified!