Where is the green book for used car loans held as collateral?
4 Answers
The green book for used car loans is generally held as collateral at the local vehicle management office; it may also be held at the 4S dealership where the car was purchased. Below is a detailed introduction to the vehicle green book: 1. Name and Meaning: The green book refers to the "Motor Vehicle Registration Certificate," which serves as the vehicle's household registration document. The Motor Vehicle Registration Certificate is the legal proof of vehicle ownership, kept by the vehicle owner and not carried with the vehicle. It is required for any vehicle registration procedures such as transfer or change of ownership, and records relevant details of the vehicle. 2. Required Materials for Application: "Motor Vehicle License Plate Application Form," original and copy of the vehicle owner's identity proof, and the Motor Vehicle Inspection Record Form. 3. Conditions for Replacement: If the Motor Vehicle Registration Certificate is lost, missing, or damaged, the vehicle owner must apply for a replacement at the local vehicle management office where the vehicle is registered.
Last year, I bought a used car and took out a loan, leaving the vehicle title (green book registration certificate) with the bank as collateral. This is because lenders need to ensure you repay on time, otherwise they risk you secretly selling the car and defaulting. After fully repaying the loan, the bank gave me a repayment certificate to retrieve the green book from their branch. Then, I took my ID and the certificate to the DMV to complete the lien release process. Used car loans aren’t much different from new car loans—both involve holding the green book. While driving, I’d remind myself of this debt to avoid overspending. This setup is reasonable for preventing fraud, but remember to repay on time to avoid penalty interest. Car loans require careful budget planning to prevent future hassles.
A friend who often deals with car loans told me that the green book (vehicle registration certificate) is usually held by the lending institution, such as a bank or the headquarters of an auto finance company. They keep it as collateral to ensure the car owner does not default or sell the car. After the loan is fully repaid, the car owner needs to contact customer service to retrieve the green book and then go to the vehicle management office to complete the release of the mortgage registration. For used cars, the process is similar, but the car's valuation will affect the loan amount. The purpose of holding the green book is to protect rights, such as preventing illegal transfers, so there's no need to worry. The entire process is straightforward and usually completed within three to five working days. It is recommended to carefully review the contract when applying for a car loan and to deal with reputable institutions to avoid being misled by intermediaries.
I just bought a used car with a loan, and the vehicle title was taken by the finance company. They said this is standard practice to protect the lender's risk. After repaying the loan, I can retrieve the green title to complete the lien release. Used car loans might be more flexible, and the title is usually kept at their office. When repaying, make sure to have repayment records and ID ready to avoid duplicate processing. This collateral mechanism gives me some peace of mind.
