When buying a car, many car owners choose to apply for a car loan because they don't have the money to buy a car in full or want to spend their money on other investments. The repayment time is long, and some car owners forget to decompress the car loan. I want to know the consequences of not paying back the car loan. Let's have a look.
Although not going to the vehicle management office to cancel the mortgage after the car loan is paid off does not affect the owner's continued use of the car, it is impossible for the owner to sell or transfer his car to others in the future, because the car shows the mortgage status on the motor vehicle registration certificate.
In fact, during the repayment period of the owner, the car is mortgaged in the hands of the bank or auto financing company where the owner handles the car loan. The ownership of the car belongs to the bank or auto financing company, and the owner only has the right to use the car. Therefore, if the owner doesn't go to the vehicle management office to go through the formalities of releasing the car after the car loan is paid off, then the car doesn't really belong to the owner.
Therefore, it is best for the car owner to pay off the car loan at the lending institution after paying off the car loan, get the relevant formalities certificate, and then go to the vehicle management office to go through the formalities of releasing the car. In this way, the car will no longer belong to the lending institution but to the owner himself, and you won't have trouble selling it in the future.
What are the consequences of not paying off the car loan?
If the car loan is paid off, the consequence is that the car is still a mortgage car in law and no other transactions can be made. If the vehicle is not mortgaged, the property right belongs to the bank, but the ownership of the vehicle does not belong to the buyer. If you don't pay off the car loan, you will always have a record in the factory or bank. If you buy another car, it may be calculated according to the interest rate of the second car, and you can't get your big green paper back. This is the key. Nothing, just that the property right of the collateral is still in the bank, that is, the ownership of the car does not belong to the buyer. If you have time, you must have time to cancel the mortgage. If the formalities are lost, it will be difficult. @20 19
What happens when you forget to put it after paying off the car loan? Great influence!
Buying a car is very common now. Even if you don't have enough money for the time being, you can choose to borrow money to buy a car. Everyone must pay attention to the fact that after the car loan is paid off, you must remember to go through the formalities of understanding the mortgage, so that you can really be the "master". What if I forget to release him? There are these consequences!
First, why do you want to release it?
Because as long as you pay off the car loan, it means that you already own the car, and you must get back the "green paper", that is, the motor vehicle registration certificate in time. If the mortgage is not released in time, the ownership of the car will always be in the bank or loan company.
Second, what will happen if I forget to release the pledge?
1, affecting car sales
Generally, a car will change after 5~ 10 years. If you want to sell this car, then the vehicle management office can't transfer it, because the ownership of the car is still in the bank. Strictly speaking, the bank is the master. A car without documents is like stealing a car. It is a "black household".
2, affect the migration
If you want to give your car to your family, then you need to transfer the car to your family or someone else's name. If you don't understand the mortgage, you can't finish it. You must release the mortgage first.
3, affecting insurance claims
If there is a traffic accident, the insurance company's claims may be directly connected with the bank or loan company, and you will not get the compensation you deserve.
4. There are certain risks.
At that time, it would be better to choose a bank car loan, because the bank is formal and reliable and will not be tempted. If the mortgage is a weak auto financing company, it will be in big trouble. In case the company runs away, goes bankrupt and is cancelled, you still don't know where to find it. And when you meet a dirty organization, you may mortgage your car without authorization, which will be miserable and you will be in debt for no reason.
Does the consequences of not paying off the car loan affect individuals? These consequences are a bit tricky!
In recent years, house prices have soared, but car prices have remained stable, and many models have reduced prices. For many people, buying a car has become within reach, but the pressure of buying a car in full is still relatively large, and many people will choose to borrow money to buy a car. Does the consequences of not decompressing after paying off the car loan have an impact on individuals? Let's get to know each other.
Does the consequences of not paying off the car loan affect individuals?
After paying off the car loan, the owner needs to go to the lending institution to obtain the ownership certificate of the vehicle, prepare relevant materials, and go to the vehicle management office to understand the charging procedures. However, some people think that after paying off the car loan, the car will belong to them. If you don't mortgage it, it will bring the following consequences to individuals:
1, affecting vehicle sales.
Under normal circumstances, after a car has been driven for five to ten years, the owner will want to change cars. At this time, he will consider selling the old car and recovering some funds. After the car loan is paid off, the owner still belongs to the lending institution, not the car, and it is impossible to buy or sell.
2. Affect vehicle transfer.
After the car loan is paid off, it can't be mortgaged. Except for buying and selling, it can't be completed if you want to transfer the car to your home, because the property right of the car belongs to the lending institution, and the owner only has the right to use the car and has no right to dispose of it.
This car can be mortgaged twice.
If you apply for a loan from an auto financing company, you can't mortgage the car after paying off the loan. The property right of the car is still in the auto financing company, and they can mortgage the car twice. The owner can't really own a car except money, which is a great loss.
The beneficiary of the insurance is not the owner.
During the car loan period, the first beneficiary of auto insurance is the lending institution, and the car loan will not be paid off. If the car is in danger, the owner will not get compensation, which will greatly affect his own interests.
Does the consequences of not paying off the car loan affect individuals? To sum up, the impact is not small. Therefore, after paying off the car loan, the car owner must go through the formalities of understanding the mortgage in time so as not to affect his rights and interests.