Vehicle Pledge: What Is A Pledged Vehicle?

Vehicle Pledge: What Is A Pledged Vehicle?

A pledged vehicle or a motorcycle pledge (รับจํานํารถมอเตอร์ไซค์ which is the term in Thai) is usually tied to an organization’s loan of money to purchase the car. It is often a bank or a credit society, but the creditor can also be the State itself in some cases.

Concretely, the fact that the car is pledged means that the pawnshop has taken precautions (a guarantee, more precisely) so that the buyer cannot sell the vehicle. This ensures that the purchaser does not benefit from a loan for a vehicle that he will resell by recovering the money. Therefore, a pledged car cannot be resold as long as it is subject to this guarantee. It is necessary to wait for the end of the pledge, that is to say, that the loan is repaid and that the prefecture is informed, to be able to sell it. Note that cars purchased on credit and not being pledged cars can perfectly be resold before final reimbursement.

A car is pledged when a creditor (a bank, the State, or a credit organization) has a guarantee on it. In general, a vehicle is pledged when it is financed by credit or leasing. If the borrower cannot honor the full repayment of his debt, he must return the pledged car to the creditor, the latter, thus ensuring that he is reimbursed no matter what.

What Is A Certificate Of Non-Pledge?

When a vehicle is pledged like car pledge Ramintra (รับจำนำรถ รามอินทรา which is the term in thai), it is registered at the prefecture until the pledge is lifted. Therefore, the buyer of a second-hand vehicle must ask the selling owner for a certificate of non-pledge (or certificate of the administrative situation), which certifies that the car is not pledged. It is up to the seller to carry out the administrative procedures necessary to obtain this document. On the other hand, it is up to the buyer to demand it. This is important because if the purchaser buys a pledged vehicle, it will be impossible to register it. We can easily imagine the consequences.


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