What does mortgaging the vehicle title mean?
2 Answers
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.
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.
