Why Can't You Get the Vehicle Certificate Immediately When Buying a Car?
4 Answers
Under normal circumstances, 4S dealerships mortgage the vehicle certificate to banks for loans, which is why they inform car owners that the certificate has not arrived yet, preventing them from obtaining it on the spot. Below is a detailed introduction to the vehicle certificate: 1. Overview: The certificate is another important document for a car and is essential for vehicle registration. Only cars with a certificate meet the national requirements for motor vehicle equipment quality and related standards. 2. Function: The content of the two-dimensional barcode on the certificate is stored in ciphertext, using the DES-64 bit encryption algorithm. DES is a strong block cipher that repeatedly uses shift transformations and substitutions. It is a product cipher system with extremely strong resistance to decryption, effectively preventing the forgery of certificates.
I often help friends with car purchases. To be honest, many dealerships don’t buy cars outright from manufacturers. When they’re short on funds, they use the vehicle’s certificate of conformity as collateral for bank loans to stock inventory. Only after you, the customer, pay the full amount or complete the loan process can the dealer redeem the documents for you. The delay often stems from this practice, especially with smaller dealerships facing financial constraints. As a result, you can’t register the car immediately, delaying your chance to drive the new vehicle. I also recommend clarifying the delivery timeline before buying and choosing reputable dealerships to minimize hassle. If the documents get stuck, not only is replacement troublesome, but it also affects insurance and ownership transfer. This issue deserves attention—don’t wait until pickup to ask about it.
I encountered this when buying a car. After paying, the salesperson said the vehicle certificate would be provided the next day, but I waited for several days. Later, I learned that the dealer didn't have enough funds to purchase the cars, so they used the certificates as collateral for bank loans. They only redeem them after you make the payment. This can be quite frustrating, especially for those in a hurry to hit the road. In related cases, if the dealer has issues, the certificates might indeed be delayed for weeks. To avoid this, it's best to clarify during price negotiations and specify the exact delivery date in the contract. Don't end up waiting in vain like I did, which can ruin the whole car-picking experience. If their cash flow is problematic, the risk increases, so choosing a reputable dealer is more reliable.
From a financial perspective, car dealers typically use vehicle certificates for financing inventory, with the certificates mortgaged to banks as collateral. The certificates are only transferred to the customer after the debt is cleared upon payment. This process is common but involves financial risks, as dealers may delay redemption when facing cash shortages. The payment method chosen by the customer also affects the certificate transfer time, with full payment being faster than financing. Risks include certificate loss or delays in registration, so buyers should ensure detailed written agreements when purchasing a vehicle.
