Where Can Lease-to-Own Vehicles Be Mortgaged?

[VivianFitz]

Lease-to-own vehicles cannot be mortgaged in principle, and selling a lease-to-own car may result in legal action from the leasing company. Lease-to-own is a method of purchasing a vehicle rather than renting one, but it differs from conventional car purchasing methods. The contract signed for lease-to-own is a vehicle rental agreement with additional clauses at the end, such as 'the vehicle will be transferred after a certain period of leasing.' Before the lease term expires, the vehicle still belongs to the leasing company, and the lessee has no right to mortgage it. Generally, the maximum term for vehicle mortgage loans can be up to 30 years. The loan amount for a vehicle mortgage largely depends on the vehicle's own value. Typically, the higher the vehicle's value, the higher the loan amount available. Mortgaged vehicles can be sold, but during the sale, the buyer must be explicitly informed that the vehicle has been registered as mortgaged. If payments are not made on time, the vehicle may be seized and auctioned by creditors to repay the debt.