What is a Mortgage Car?
1 Answers
Mortgage car meaning introduction: A mortgage car refers to the real estate collateral provided by the car owner to financial institutions when they urgently need cash for a loan. If the car owner fails to fulfill the debt, the financial institution has the right to prioritize compensation by discounting the property or auctioning/selling it according to legal provisions. There are two sources of mortgage cars: 1. Directly from state-recognized investment companies, guarantee companies, or pawnshops. 2. Pledged loans from private financial companies. Generally, during the mortgage period or before the debt is fully settled, it is not advisable to purchase a mortgage car, as it may involve risks.