If you don't have a license, you need to mortgage the vehicle at the lending institution and pay off the loan before you can use the vehicle; However, if you don't take the car, you just need to go through the mortgage formalities and then mortgage the vehicle registration certificate to the lending institution. The vehicle can still be used during the loan period, but this method usually requires installing a GPS locator on the vehicle. If there is no green paper, you can only choose mortgage-free loans.
Although there are unsecured loans, we all know that the depreciation rate of cars is very fast. If there is a traffic accident or the car is damaged by the accident, the bank may not accept such vehicles as collateral to apply for loans. Generally, only some small lending institutions will have automobile mortgage, and the interest rate of such loans will be relatively high.
Advantages and disadvantages of two loan methods
First, the advantages and disadvantages of secured and unsecured loans.
1 Mortgage loans are less risky for lending institutions, so the loan amount can generally be higher;
2. The interest rate and charges for car loans will be relatively low;
A car is a rapidly depreciating commodity. Generally, the loan term will be shorter, but if you mortgage your car, you can get a longer term.
After the mortgage loan is registered, the vehicle is mortgaged in the lending institution, and the borrower cannot use the vehicle before paying off the loan.
Second, the advantages and disadvantages of secured and unsecured loans
1 If the vehicle is not mortgaged by the lending institution, the owner can still use the vehicle;
You only need to go through the relevant formalities of mortgage car, which is relatively simple.
3. Low loan amount and high loan interest rate;
4. The loan period is short. Generally, the non-stop mortgage loan is only a few months or 1 year, and only short-term loans can be made.