What does mortgaging the vehicle title mean?

[StValeria]

Mortgaging the vehicle title means the vehicle owner uses the automobile as collateral. Meaning of the vehicle title: The vehicle title is the vehicle registration certificate. The registration certificate serves as legal proof of vehicle ownership, kept by the owner and does not need to be carried in the vehicle. The vehicle title must be presented for any registration procedures such as transfer or change of ownership, and it records relevant vehicle information, equivalent to the vehicle's household registration document. Mortgage and release process: When a vehicle owner uses the automobile as collateral, they must apply for mortgage registration (green book) at the local vehicle management office. After repaying the loan, the owner retrieves the green book from the lending company and applies to the vehicle management office to remove the mortgage registration.

[Ryan]

Mortgaging the 'Big Book' refers to pledging the green-covered 'Motor Vehicle Registration Certificate' to the lender. For example, when I was short on funds for my business last time, I mortgaged my car's 'Big Book' to the bank and secured a loan of 500,000 yuan. At this point, although the ownership of the vehicle still belongs to me, since the 'Big Book' is in the bank's possession, I cannot sell the car freely. Once the loan is fully repaid, the bank will stamp the second page of the 'Big Book' to confirm the release of the mortgage. It's important to note that some small loan companies may require the 'Big Book' as collateral, often charging higher interest rates, which can easily lead to disputes.

[Tami]

I'm familiar with this issue! Last year, my cousin bought a car with installment payments due to lack of funds, which involved mortgaging the vehicle title. Essentially, the finance company holds onto the vehicle's property certificate as collateral to protect themselves in case you default on the loan. When I helped him with the release process, I had to visit the DMV three times: first to settle the loan and obtain the release documents, then to get the mortgage page of the title stamped, and finally to update the vehicle records. Only after completing the entire process did he truly regain ownership. A reminder to everyone: carefully review the contract details before signing to avoid being trapped by bundled insurance or excessive handling fees.

[KylieLynn]

From the perspective of used car industry experience, there are two most common scenarios for vehicle title mortgages: first, when purchasing a car on installment, the finance company holds the documents; second, vehicle pledges for private loans. Pay special attention to the 'Mortgage Registration' information section on the title's registration page—only when the mortgagee's name is clearly stated is it legally protected. We've encountered cases where customers bought mortgaged vehicles at a bargain, only to have the cars repossessed by the court because the original owner hadn't cleared the mortgage, resulting in a total loss of hundreds of thousands. Never touch a used car with questionable ownership.

[DeMalia]

When the vehicle's green book is in a mortgage status, it means the ownership is restricted. For example, my neighbor used the car as collateral to borrow 300,000 yuan, with the title held by the pawnshop. In this status: 1. The vehicle can undergo normal annual inspections; 2. Transfer of ownership or changes to owner information are not allowed; 3. Replacement in case of loss requires a certificate from the mortgagee; 4. The situation becomes more complex if there are multiple mortgages. It is recommended to check the vehicle's status using the Traffic Management 12123 APP, where mortgage information is clearly displayed.