The Car Pledge Agreement between individuals is a contract whereby one party (the pledgor) grants the other party (the pledgee) the right to satisfy its claims from the value of the vehicle if the secured obligation is not performed or is improperly performed.

This agreement is drafted in a simple written form, specifying the pledged asset, the amount and term of the obligation, the vehicle’s valuation, and the conditions regarding which party retains possession of the car.

Although notarization is generally not required, registering the pledge in the State Register of Notifications on Pledge of Movable Property enhances the pledgee’s legal protection.

The document is used when private individuals seek to secure a loan, credit, or other obligation while allowing the pledgor to continue using the car.