If you need a loan, you probably don't know that your used car can be a valuable collateral to help you get the money. However, the application process for second-hand car mortgages may be somewhat complicated. Let's explore how this process works。

How can I borrow a used car mortgage

The first is to submit a loan application. This step involves a dialogue between the lender and the institution, and the lender needs to submit to the institution information on the need for and preparation of the loan。

The loan institution then reviews your information, including your credit records, car ownership certificates and your personal background. If you meet the Agency's requirements, your loan application will be granted。

If the audit is approved, the loan institution will assess your car and negotiate with you and eventually sign a loan contract based on the assessed price。

After the contract is signed, you need to take the car mortgage, buy insurance and pay the fees. Once these are completed, the bank will begin to issue loans。

AS TO HOW MANY LOANS YOU CAN GET, THE MAXIMUM AMOUNT OF SECOND-HAND CAR MORTGAGES WILL NOT, IN GENERAL, EXCEED 70% OF THE REAL VALUE OF THE CAR, DEPENDING ON YOUR QUALIFICATIONS AND THE RESULTS OF THE APPROVAL OF THE LOAN INSTITUTION. IN OTHER WORDS, THE BETTER YOUR QUALIFICATIONS, THE HIGHER THE AMOUNT OF CREDIT YOU MAY GET. HOWEVER, SINCE USED VEHICLES ALREADY HAVE A USEFUL LIFE AND HAVE A HIGH WEAR AND TEAR RATE, THE MAXIMUM LOAN AMOUNT GENERALLY DOES NOT EXCEED 70% OF THE REAL VALUE OF THE CAR。