Can I buy a car by mortgage? What are the consequences?

Mortgage cars that cannot be transferred can be bought, but it is not recommended. The owner of the car does not have complete protection rights and may get compensation.

legal ground

Article 401 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * The mortgagee and the mortgagor agree that when the debtor fails to perform the due debts before the expiration of the debt performance period, the mortgaged property belongs to the creditor, and only the mortgaged property can be paid in priority according to law.

Article 406 During the mortgage period, the mortgagor may transfer the mortgaged property. Unless otherwise agreed by the parties, such agreement shall prevail. If the mortgaged property is transferred, the mortgage right will not be affected.

Where the mortgagor transfers the mortgaged property, it shall promptly notify the mortgagee. If the mortgagee can prove that the transfer of the mortgaged property may damage the mortgage right, he may require the mortgagor to pay off the debt or deposit the proceeds of the transfer in advance with the mortgagee. The part of the transfer price exceeding the amount of creditor's rights belongs to the mortgagor, and the insufficient part is paid off by the debtor.