Because the mortgaged car belongs to the lending institution and only has the right to use it, the ownership of the car is not entirely in the owner's name. For collateral with unclear property rights, banks will not accept mortgages, and it is not feasible to obtain mortgage loans. Because the car in the mortgage is mortgaged to the bank, you can't apply for a mortgage loan before the mortgage is lifted. Therefore, only after the borrower pays off the car loan and goes through the formalities of canceling the mortgage can he apply for a loan as a mortgage.
In addition, even if there is full ownership of the car, the bank usually will not accept automobile mortgage, because the car depreciates quickly and the risk is high, so the bank will not accept it.