Mortgage loan is a way of automobile mortgage, that is, applying for a loan from a lending institution with one's own vehicle as collateral. The vehicle needs to be placed in the designated position of the lending institution and collected after payment. Generally, before the delivery of the vehicle, both parties will sign a statement, the general content of which is about the responsibilities of both parties during the mortgage and storage of the vehicle.
Although mortgage loans won't sell your car, and you won't be allowed to drive your car at ordinary times, there are still many malicious loan companies that have dug some traps to deceive car owners, so that you can't repay the loan and then sell your car. You need to pay attention to it yourself. Car loans still have security risks. Here are some risks.
1. Personal car loans are not handled according to the agreed standards: nowadays, the competition in the car loan market is becoming increasingly fierce. Many loan companies will exaggerate their companies more or less when promoting their own companies, and they will also make many verbal promises when talking about contracts. However, these verbal commitments have no legal effect and may be lost after signing the contract.
2. Borrowers are easily confused by pseudo-professionalism and pseudo-formality: when applying for loans, many people let go of their guard and think that the process is formal after confirming that the car loan process is formal, so they can fully trust the lending institutions. The process of auto loan is: pre-loan investigation → agreement between the two parties → signing a contract → issuing loans, and taking photos and records.
3. Unreasonable charges in the process of loan processing: It is the most commonly used and best one for many car loan guarantee companies to collect fees in various excuses. Because many lenders don't really know about loans, sometimes they are eager to buy a car, and they are completely unaware of the cost of loans, so lenders take the opportunity to take advantage of loopholes and add unwarranted fees everywhere.
4. Grasp the borrower's habit of not browsing the contract carefully and set a trap: the signed contract has legal effect, and the lender must pay attention to the contract content when signing the contract. Many people sometimes don't read the contract carefully, but just flip through it and sign it. It is precisely because of this psychology that the lender has grasped that adding unreasonable agreements in the contract will cause economic or other losses to the borrower.
Whether it is legal to borrow a car depends on the specific situation. It is legal and effective to go to the vehicle management office for mortgage registration through automobile mortgage. However, if it is not registered with the vehicle management office, even if there is a mortgage contract, the mortgage is still invalid. If you don't go to see the house, it will not only be difficult to do auto insurance, but also cause unnecessary. Failure to pay compulsory insurance will be investigated, and car inspection will be very troublesome.
Is it legal to mortgage a private car?
Legal. But it must be within the scope permitted by law, otherwise it will not be protected. At present, in China, banks generally do not provide automobile mortgage services, and generally need to find private professional credit institutions to apply for such services.
Extended data
"Car loan" is divided into two forms: parking and non-parking. Escort car: Give the car to the company for safekeeping. There is a parking lot dedicated to parking the car, and there is a special person to watch it 24 hours a day. Lights the car regularly to warm up. Don't mortgage the car: customers can choose to just put the formalities in the company, or use the car for their own use, and need to apply for mortgage registration. The loan business is flexible and fast, and the amount can generally reach 70-80% of the assessed amount. Generally, the loan can be released on the same day when the formalities are complete. Mandatory provisions on vehicle mortgage loan: the car under the name of an individual, the full amount, and the car within the service period.