Most 4S stores use bank loans to pay for their cars, because car factories have to pay the full amount before delivering (new cars) to 4S stores. In order to improve capital efficiency, 4S stores must borrow money from banks. One of the collateral of bank loan is the certificate of automobile, which is a financing method. You can't get the certificate until the buyer pays the full amount, because the certificate is still in the bank's hand.
The financing of automobile dealers' pledge certificate is a common problem;
1. "It is an open secret of many 4S stores to pledge loans with certificates of conformity." A car salesman who has worked for 10 years admits that car manufacturers, dealers and financial institutions generally sign tripartite agreements, and dealers generally borrow money from financial institutions to pick up cars from manufacturers, and the collateral is a vehicle certificate.
2. After the financial institution gives the loan applied by the dealer to the manufacturer, the manufacturer starts to give it to the dealer after receiving the loan, and the dealer goes to the financial institution to cancel the mortgage redemption certificate after selling the car.
Refer to the above? China News Network-Auto Sales Exposes "Hidden Rules": Vehicle Certificate is Mortgaged by 4S Shop.