Where Are Mortgaged Vehicles Usually Parked?
2 Answers
It is still under your own custody. If it is a pledge, then it will be under someone else's custody. If damage occurs during someone else's custody, they will definitely be held accountable. Bank Internal Bidding Auction: When the car owner purchases a car in installments, they obtain a loan from the bank using the car as collateral. At this time, the vehicle title (green book) is held by the bank, and the car cannot be transferred until the loan is fully repaid. When checking the records, it will show: 'Mortgaged to XX Bank.' If the car owner fails to repay the loan on time, the bank will face bad debt. To recover the bad debt within the year, the bank may sue the owner in court or have the car towed back by a third party for internal bidding auction. The price of such mortgaged cars is similar to that of used cars, and it is not recommended to purchase them. Financial Company Auction: Auto mortgage loans are obtained from financial institutions using the borrower's or a third party's car or self-purchased car as collateral. When checking the records, the status will show: 'Mortgaged to XX Auto Finance Company.' Once the car owner defaults on the loan, the financial company may sue or have the car towed back by a third-party collection team. The car will then be auctioned internally through a bidding process. Pawnshop Mortgage: If the car owner urgently needs money and cannot obtain a loan from a bank or financial institution for certain reasons, they may use the car as collateral to borrow money from private enterprises or individuals, signing a mortgage contract. If they are unable to redeem the car by the due date, it will be resold through debt transfer.
A mortgaged car is one that you're still paying off the loan for, typically parked at places you frequently use, like your home garage or the company parking lot. Having worked with cars for years, I've noticed most owners park in these spots for the convenience of daily commutes. Don’t underestimate parking location—safety is crucial. Parking in unmonitored public areas carries high risks, such as being targeted or encountering issues during repossession. If loan payments fall through, banks or financial institutions may tow the car to their designated holding lots, with some temporarily storing it at auction houses. Owners are advised to choose parking spots wisely and add anti-theft measures to protect their vehicles and avoid trouble.
