Why does the new vehicle certificate need to be mortgaged in the bank?
1 Answers
Because car dealerships generally need to use the vehicle certificate as collateral for loans to maintain cash flow. Introduction to certificate mortgage method: "Using certificates as loan collateral is an open secret for many 4S stores currently." Automobile manufacturers, dealers and financial institutions usually sign tripartite agreements. When dealers purchase vehicles from manufacturers, they mostly obtain loans from financial institutions, with the vehicle certificates serving as collateral. Introduction to certificate redemption method: After financial institutions provide the loan requested by dealers to manufacturers, the manufacturers receive payment and deliver vehicles to dealers. After selling the vehicles, dealers then go to financial institutions to release the mortgage and redeem the certificates.