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Can a personal car be mortgaged?
Individual-owned vehicles can indeed be used as collateral for loans, but banks usually do not directly provide automobile mortgage services, because cars depreciate rapidly and there may be risks. This kind of loan business is mostly handled by non-bank financial institutions such as microfinance companies, pawn shops and loan intermediaries. Usually, the interest rate is higher and the loan term is generally shorter, so as to reduce the repayment pressure of the borrower.

If you need to use a private car loan, first of all, the borrower needs to prepare ID card, driver's license, car purchase contract and other supporting documents and apply to the lending institution. Because banks don't accept automobile mortgage, most people will consult loan intermediaries. After submitting the required materials, the institution will review the qualifications of the borrower, and after passing, it will evaluate the value of the vehicle and determine the loan amount.

Once the loan is approved, the borrower needs to sign a contract to mortgage the vehicle, usually just providing the driver's license. After the loan expires, the steps to cancel the mortgage include: after the loan institution settles the loan, it will go to the vehicle management office for cancellation with relevant documents, fill in the application form for cancellation of vehicle mortgage, submit the application and obtain the motor vehicle registration certificate.

In the process of handling, it is necessary to pay attention to the selection of formal financial institutions to ensure reasonable interest, and some institutions may install GPS monitoring. Vehicle mortgage loan is suitable for short-term small capital turnover because the value of the car is not high. After the loan is paid off, it is necessary to obtain a settlement certificate before the vehicle management office can handle the mortgage cancellation.

The amount of automobile mortgage is usually based on the market value of the vehicle, up to 90%, which is influenced by the brand, age and type of the vehicle. For example, the loan amount of new cars and high-quality brands will be higher and the success rate will be higher.