At present, the mortgage car that can be traded in the used car market is essentially that the owner pledges the vehicle that is still in arrears to the pawnshop or individual (creditor) for loan, and the lender (creditor) signs a contract with the owner in the form of creditor's rights. If the owner fails to repay the principal and interest, the creditor will transfer the creditor's rights (including the vehicle and the right to use the vehicle) to a third party. According to the contract law of our country, the transfer of creditor's rights is protected by national laws.

Of course, before the mortgage is lifted, the mortgage car cannot be transferred. If the mortgaged car can be transferred, then the owner must pay off the car loan from the bank and issue a settlement certificate, and then the mortgage agreement can be cancelled at the vehicle management office. But it's very difficult (much more expensive than the same used car on the market), so most mortgage cars can't be transferred.

Two. Matters needing attention in buying and selling

1, a mortgage car usually refers to a regular mortgage car. A regular mortgage car is a formal source, with formal and legal procedures such as pledge agreement, creditor's rights transfer agreement, notice and exemption agreement. In addition, the lending institution can also provide a valid copy of the owner's ID card (for the vehicle), the original driving license, the car purchase invoice, the original car key, etc.

2. Mortgaged vehicles are legally obtained, and all vehicles are well documented and have a copy, which can be checked nationwide. Ensure normal driving, check the car and buy insurance. If you are worried about the condition of the car, you can go to a professional car inspection agency to check it, and put an end to accident cars, soaking cars and refurbished cars.

3, the vehicle can not be transferred, so it is cheaper than the transfer car!

4. Regarding the annual inspection of vehicles, you can issue a power of attorney for annual inspection in different places and directly entrust your local dmv to conduct annual inspection of vehicles.

As for the insurance after buying a car, you can buy insurance in your own name with your driver's license and your ID card.

Many buyers don't pay much attention to the source of the mortgage car, so there are many problems after the purchase.

Third, is the mortgage car legal?

1. According to the new judicial interpretation of the property law and other relevant laws and regulations, the transfer of vehicle property rights has taken effect since delivery.

2. In line with the provisions of the contract law, the transfer of the mortgage car is actually the transfer of creditor's rights, and many related contract agreements have been signed. Therefore, after purchasing the mortgaged car, the buyer can enjoy the right to use the car. Although it cannot be transferred, the buyer can purchase insurance and annual inspection normally.

At present, the sale of mortgage cars has become a popular way to buy cars, which enables ordinary people to buy good cars with little money, especially for some high-end customers, who can buy their luxury cars at the lowest price and achieve their goals.

4. Mortgaged cars are bad assets in the auto finance market. It has helped car owners, banks, financial companies, pawn shops and individuals through the legal transfer of creditor's rights, accelerated the circulation of cars and played a certain positive role in the national economy.

Vehicle pledge business process:

I. Overview of auto loan business

Car loans can be divided into two categories: first-hand automobile mortgage and second-hand car mortgage loans. This paper mainly discusses the second-hand car mortgage loan in the field of private finance. Among many products, second-hand car mortgage loan is favored by financial institutions, microfinance companies, online lending platforms, pawn shops and other lending institutions because of its short cycle, fast approval and convenience. In practice, second-hand car mortgage loan mainly includes two business types: vehicle pledge and vehicle mortgage.

Vehicle mortgage is also commonly known as? Live betting? In this mode, the lender takes the certificate as the pledge instead of the vehicle, and the borrower only needs to register with the vehicle registration department, and the vehicle is still in the borrower's hand, which does not affect the borrower's application for the vehicle, and the vehicle mortgage can give full play to the use value of the vehicle to a greater extent. Whether it is vehicle pledge or vehicle mortgage, if creditors want to realize their creditor's rights, they must exchange or realize the vehicles. As far as vehicle mortgage is concerned, because the vehicle is still in the hands of the borrower, the author thinks that the risk of mortgage is greater than pledge. In addition to going to the vehicle registration agency (vehicle management office) for mortgage registration, the credit reporting agency needs to hand over the vehicle driving license, registration certificate and other procedures to them. In addition to mortgage procedures, many institutions will also install GPS on vehicles. At present, the GPS tracking technology of vehicles is very mature. Usually, the mortgaged vehicles are local vehicles. Because the vehicles are still in the hands of borrowers, they are relatively easy to control.

In the mode of vehicle pledge, both the certificate and the vehicle are pledged, and the borrower needs to deliver the vehicle to the lender for safekeeping. Private lending institutions that pledge vehicles generally have parking lots for storing cars, and the parking lots will be monitored, and special personnel will be arranged to take care of them 24 hours a day. In order to prevent the vehicle from breaking down, it is necessary to light the car regularly and drive it twice.

Second, the legal provisions on vehicle mortgage and vehicle pledge.

(1) Vehicle mortgage

Article 179 of the Property Law defines mortgage as:? 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. ? According to the provisions of Article 188 of the Property Law, the vehicle mortgage as a means of transportation is established when the mortgage contract comes into effect, and it may not be used against a bona fide third party without registration. On this basis, the vehicle mortgage is registered against the system. When the creditor and the debtor sign the vehicle mortgage contract, the mortgage will be established and take effect, but if they don't go to the vehicle registration department for mortgage registration, they can't fight against a bona fide third party.

According to Article 22 of the Regulations on Motor Vehicle Registration of the Ministry of Public Security, if a motor vehicle owner mortgages a motor vehicle as collateral, he shall apply to the vehicle management office at the place of registration for mortgage registration; If the mortgage right is extinguished, it shall apply to the vehicle management office at the place of registration for cancellation of mortgage registration. ? According to Article 23 of the Regulations on Motor Vehicle Registration, to apply for mortgage registration, the owner of the motor vehicle shall fill in the application form, which shall be jointly applied by the owner of the motor vehicle and the mortgagee, and the corresponding certificates and vouchers shall be submitted.

② Vehicle pledge

Article 208th of Property Law defines pledge as? In order to guarantee the performance of the debt, if the debtor or a third party gives his movable property to the creditor for possession, if the debtor fails to perform the due debt or the parties agree to realize the pledge, the creditor has the right to be paid in priority for the movable property. ? According to Article 212 of the Property Law, the pledge is established when the pledger delivers the pledged property.

From the above provisions, it can be seen that in the pledge relationship, the pledge contract takes effect when both parties sign it, but the pledge is established when the pledged property is delivered. Therefore, in the vehicle pledge business, the creditor's actual possession of the vehicle is the key to the vehicle pledge. In addition, does the vehicle pledge need to be registered? Judging from the current situation, pledge registration has not been handled. As far as vehicle pledge is concerned, when the creditor signs a vehicle pledge contract with the debtor, the pledge will take effect after the borrower delivers the vehicle to the creditor, and the creditor will get the corresponding pledge. When the debtor fails to perform the due debt or the parties agree to realize the pledge, the creditor has the right to be paid in priority for the vehicle.

At present, some vehicle management offices (not all vehicle management offices) only set up pledge filing for pawn shops, but the pledge filing is not open to other creditors. According to the provisions of Article 42 of the Regulations on Motor Vehicle Registration, an application for motor vehicle pledge or cancellation of pledge shall be made jointly by the motor vehicle owner and the pawnshop, and the motor vehicle owner shall fill in the application form and submit the following certificates and vouchers:

(a) the identity certificate of the owner of the motor vehicle and the pawnshop;

(2) Motor vehicle registration certificate.

As far as the legal effect of pledge filing is concerned, as long as the vehicle is delivered, the pledge will be established and take effect, and whether it is filed or not will not affect the establishment of the pledge. However, according to the provisions of Article 20 of the Regulations on Motor Vehicle Registration, during the mortgage registration and pledge filing, motor vehicles cannot apply for transfer registration.

Third, the basic risk control ideas of private financial enterprises engaged in auto loan business

According to the Property Law, the basic ways to realize mortgage and pledge are discount, auction and sale. The final result of these three ways is that mortgage and pledge must be realized and exchanged. The essence of realizing mortgage and pledge is to repay the corresponding creditor's rights with the exchange value of mortgage or pledge, and the creditor evaluates the exchange value of mortgage or pledge.

If you want to exchange collateral or pledge, you can use judicial means and non-judicial means. The basic risk control principle of private financial enterprises engaged in car loan business is: through system design, not through judicial means, but through controlling collateral and realizing it by itself, which is the core of risk control of car loan business of private financial enterprises.

Compared with banks and other institutions, private financial institutions are more flexible in realizing vehicles, and few private financial institutions will realize vehicles through judicial procedures, mainly because judicial procedures take too long, consume a lot of manpower and material resources, and there are still great uncertainties. As far as vehicles are concerned, due to the serious depreciation of vehicles, if the processing time is too long, even if the vehicles are finally processed, it is a big problem whether all the principal and interest can be covered. Don't forget that there is overdue interest during the processing period.

In practice, some institutions and individuals engaged in private loan business, in order to better realize the vehicle, in addition to handling the formalities such as driving license and registration certificate (big copy), will also let borrowers sign blank sales contracts, authorized sales books and other documents, so that borrowers can successfully realize the vehicle after the deadline. In addition to the above procedures, in order to do a good job in auto loan business, lending institutions need to have several closely cooperated used car dealers who can help us to inspect and evaluate vehicles and dispose of and realize them in time.

Four, the basic types of auto loan business

In practice, auto loan business can be divided into the following categories:

(1) automobile full mortgage business

This kind of business is generally a vehicle purchased in full in the name of an individual. During the use of the vehicle, the applicant is generally required to be 20 to 60 years old and have a local license plate, and the owner is generally required to be local. (Note: It doesn't mean that you can't get off with company name, foreign license plate or foreigners, but from the perspective of risk control, foreign cars are more difficult to control, so it is recommended not to make these cars as much as possible in operation).

② Pledge the vehicle in full.

For fully pledged vehicles, the relative mortgage risk will be smaller. Most lending institutions do not limit whether the owner is an individual or a company. Foreign cars can generally be made (national license plate), but cars must be purchased in full, and vehicles must be non-operating vehicles.

(3) Mortgage loans pledged by mortgage instruments

Some companies also run this kind of business. In this kind of business, vehicles are purchased through mortgage loans and have been mortgaged to banks. In doing this kind of business, we need to establish a certain relationship with the bank and get the cooperation of the bank. When the borrower fails to repay the loan in time, we will directly help the borrower to repay the bank loan in advance, and release the vehicle and realize it by itself with the cooperation of the bank. This kind of operation is not very common among the people because it is relatively difficult to operate.

(4) Full payment of vehicle transfer business

This business model has also been adopted by some companies. When the borrower comes to borrow money from us, we first ask the borrower to transfer the vehicle to the creditor or the third person designated by the creditor, and then we transfer the vehicle to the borrower after the borrower repays the loan. In actual operation, in this mode of operation, it is generally not to take a car. The car running in this mode must be a fully loaded car. Generally speaking, there is no restriction whether the owner is an individual or a company. Foreign cars can also be made (national license plate), but the cars must be purchased in full, and the vehicles must be non-operating vehicles.

Verb (abbreviation of verb) The main risks faced by auto loan business

As a credit business, the risks of auto loan business mainly include:

(A) the risk of imperfect credit information system

Due to the imperfect personal credit information system, it is difficult for credit institutions to fully and carefully understand the income, financial status and credit records of borrowers, which makes it more difficult for lending institutions to judge the repayment ability and willingness of borrowers.

（2）

Many lending institutions lack a standardized and reasonable risk control system. In order to complete the performance, some business people often choose to operate illegally, relax the loan conditions, simplify the loan procedures and even ignore the investigation of the real situation of borrowers. Insufficient or insufficient implementation of risk control process is the root cause of operational risk.

③ Risks caused by customer fraud

There are various types of customer fraud, mainly including providing false information, not truthfully explaining the purpose and reason of the loan, etc. In addition, fake identities, rental cars, deck cars, accident cars and impounded cars also occur from time to time.

(D) Pre-lending risk assessment is a mere formality.

Although the core of car loan business is to control vehicles and realize them smoothly through non-judicial channels, it cannot be overcorrected. Many lending institutions focus on the evaluation, control and supervision of vehicles, and the pre-loan evaluation of borrowers is more like a routine, which undoubtedly hides huge risks. Especially in the vehicle mortgage loan business, because the vehicle is still in the hands of the borrower, the lending institution should focus on evaluating the borrower's credit. Once the borrower is overdue, even the GPS lending institution may not find a car.

(v) Risk of vehicle depreciation

Vehicles belong to movable property and depreciate relatively quickly. If the vehicle depreciates greatly, the borrower's willingness to repay will decrease. Therefore, the second-hand car mortgage loan business must be a short-term loan, generally at 1? Six months. In addition, after the borrower is overdue, it is necessary for the credit institution to realize the vehicle as soon as possible, otherwise the value of the vehicle may not fully cover our principal and interest over time.

(vi) The risk of the borrower's transitional liabilities

This situation is very common in practice. In practice, the borrower mortgages the vehicle to an informal company for the second time, even if the black car is resold. In this case, it will be difficult for us to realize the creditor's rights.

(vii) Managing post-lending risks

Many institutions failed to conduct post-loan tracking management, failed to check loans according to regulations, and failed to find risks in time. Lending institutions need to have a standardized post-lending management system to timely discover and evaluate some early warning signals of borrowers, such as cell phone shutdown, overdue interest payment, abnormal vehicle trajectory and other liabilities, and take corresponding measures.