Why does the DMV retain the green book?
1 Answers
The DMV retains the green book because it serves as collateral. When purchasing a car with a loan, the green book is marked with a mortgage notation, which needs to be removed upon loan settlement. Below is an introduction to loan-related vehicle matters: 1. Reason for restricted sale: Vehicles with outstanding loans are mortgaged to the bank, and those with mortgage registration cannot be freely sold. 2. Timing for sale: When selling a financed vehicle, you can choose to sell it after the loan is fully repaid or request the buyer to settle the outstanding amount in advance. Below are expanded details regarding loan-related vehicles: 1. Loan space: Financed vehicles must have available equity to apply for a second mortgage loan. 2. Definition of second mortgage: It involves using the same collateral already under mortgage to secure additional loan funds, allowing the borrower to obtain further financing.