The vehicle is mortgaged only by the value of the mortgaged vehicle, and the vehicle is still occupied and used by the owner.

The establishment principle of mortgage is not to transfer the possession of collateral. Therefore, the vehicle can be driven away and used continuously.

Article 179 of the Property Law

In order to guarantee the performance of the debt, if the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, if the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the creditor has the right to be paid in priority for the property.

The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.

Extended information: frequently asked questions about vehicle mortgage loan;

According to the provisions of the Property Law, the registration system takes effect when real estate and related rights are mortgaged, while the registration system is implemented when movable property such as production equipment and means of transportation are mortgaged. According to this regulation, automobile mortgage is registered for the system, and failure to register will not affect the validity of the contract.

Although the "Guarantee Law" stipulates that the vehicle mortgage will take effect after registration, that is, the mortgage contract will take effect from the date of registration. However, according to the principle that the new law is superior to the old law, Article 178 of the Property Law stipulates: "If the guarantee law is inconsistent with this law, this law shall apply." Therefore, as long as the contract is signed, the automobile mortgage has legal effect.

1, most car mortgages are implemented with mortgage cards instead of cars. That is to say, as long as you mortgage the relevant documents of the car to the lending institution, you can get a loan, and the car will be used as usual after installing gps. Therefore, before making mortgage loans, we should first know whether automobile mortgage is mortgaged, so as to avoid institutions that want to mortgage cars as much as possible.

2. automobile mortgage's funds are usually used for short-term turnover. If you need a long-term loan, it is not applicable to borrow money with a car as collateral.

3. Because automobile mortgage usually generates high fees, if you choose automobile mortgage with a long cycle, you can try to repay in advance.

4. When choosing institutions, borrowers should try to choose formal lending institutions. For example, banks and microfinance companies in industrial and commercial registration. On this basis, we can truly protect our legitimate rights and interests, and once disputes arise, the law can solve them.

Reference source: Baidu Encyclopedia _ People's Republic of China (PRC) Property Law