Why does Yizhong Automobile Trade hold the green book for three years?
2 Answers
Green book mortgage for three years is due to applying for installment repayment when purchasing a car. Green book mortgage is related to the payment method of car purchase. If the car is purchased in full payment, the green book must be handed over to the car assistant together with the car. If applying for installment repayment, the green book will be mortgaged with the merchant, and it will only be handed over to the buyer after the repayment is completed. Definition of car mortgage: Car mortgage loan is a loan obtained from financial institutions or auto consumer finance companies by using the borrower's or a third party's car or self-purchased car as collateral. Green book issuing authority: All installment car purchases require mortgage of the green book. In fact, the full name of the green book is "Motor Vehicle Certificate of Conformity". For mortgage applications by financial institutions, the green book is mortgaged at the traffic management department, i.e., the vehicle management office. Function of green book: Without the green book, the car cannot be resold, traded, or mortgaged. Only after the loan is repaid and the green book is retrieved from the vehicle management office does the car completely belong to the buyer.
To put it bluntly, the reason car dealerships hold onto the green book (vehicle ownership certificate) for three years boils down to one thing: fear of your default. The green book is the car's title deed—as long as they keep it in their hands, the car can't easily be resold or transferred. If you default on your auto loan midway, they can quickly repossess the car using the green book to cover the debt. For customers with less-than-stellar credit records, dealerships are even more reluctant to take risks. Typically, the three-year period aligns with the loan term. I’ve seen cases where people wanted the green book back after early repayment, but most contracts explicitly state this timeframe. However, I recommend confirming the release conditions when picking up the car to avoid disputes or extra fees during the final release process.
