What Does It Mean When a Car Is Mortgaged?
1 Answers
It refers to a vehicle that is used as collateral for a bank, company, or individual. Mortgaged cars can generally be divided into two types: 1. Bank installment vehicles. 2. Vehicles mortgaged to individuals or companies as loan collateral. If the mortgage has been lifted, the car can be purchased; if not, buying such a used car may pose risks because legally, the car does not yet belong to the prospective buyer, who can only request the original owner to return the purchase cost. Mortgaged cars are categorized into fully paid mortgaged cars and non-fully paid mortgaged cars. A fully paid mortgaged car must meet one of the following conditions: 1. The car was purchased with a one-time payment. 2. The car was bought through installment payments, and the payments have been completed, but the owner is unwilling or unable to repay the financial company and does not cooperate with the transfer of ownership. The financial company then legally transfers the debt, making the purchase of such a mortgaged car legal and safe. Note: Non-fully paid mortgaged cars are those still under mortgage status with the vehicle management office and the bank. Such cars should be purchased with caution, as they may eventually be seized if the owner fails to repay the car loan. However, the owner's failure to repay the car loan could lead to prosecution for contract fraud.
