Why Are Mortgaged Cars Mostly from Other Provinces?

[KayleeLee]

Mortgaged cars are mostly from other provinces for the following reasons: First, purchasing a car with an out-of-town license plate significantly reduces the chance of encountering the original owner. Second, it makes it less likely to be targeted by other creditors. Lastly, there is a higher possibility of finding a desirable license plate from another region. A mortgaged car is a property pledged as collateral by the owner when they urgently need cash and take a loan from a financial institution. If the owner fails to fulfill the debt, the financial institution has the right to prioritize repayment by either converting the property into cash or auctioning/selling it, as per legal provisions. There are two main sources of mortgaged cars: 1. Directly from state-recognized investment companies, guarantee companies, or pawnshops. 2. Pledged as collateral for loans from private financial companies. Generally, it is not advisable to purchase a mortgaged car during the mortgage period or before the debt is fully settled, as it carries risks.