You might think, "I can use my car for a mortgage. What's the term of the loan?" The answer to this question is the vehicular mortgage (also known as the vehicular mortgage), a service that uses your car as a pledge for loans from banks or other financial institutions. This type of loan is generally available for a period of one to three years, up to a maximum of five years. It depends on your personal needs and the value of the car. Why is the duration of the car mortgage short? Because of the faster depreciation of cars, the higher probability and risk of traffic accidents, this is why lending institutions usually set short loan terms。

How long can a vehicle mortgage go on

To obtain such loans, you need to follow the following steps:

First, you need to choose a financial institution you trust. Relevant documents and information, including identity cards and car permits, are then prepared. The financial institution then sends professionals to assess your vehicle to determine its market value and the amount of money available for loan. After assessment, you entered into a car mortgage contract with a financial institution. Then you will have to submit all the collateral materials and contracts to the traffic authorities for a mortgage registration. Upon completion of registration, the loan funds will be transferred to the designated bank account that you provide, which you can use according to your needs. Finally, you must pay the principal and interest of the loan in full and on time, as agreed。