Do used car dealers transfer ownership to themselves when purchasing vehicles?
3 Answers
Most used cars purchased by dealers are initially not transferred. The ownership is directly transferred to the buyer only after the buyer tests the car and makes the payment, which helps save on transfer fees. Dealers will only transfer the ownership to themselves first if the seller sets the transfer as a precondition. Below are the relevant regulations: Article 19 of the "Motor Vehicle Registration Regulations" stipulates: If the current motor vehicle owner's residence is within the jurisdiction of the vehicle management office, the office shall, within one day from the date of accepting the application, confirm the motor vehicle, verify the vehicle identification code imprint, review the submitted documents and certificates, retrieve the license plate and registration certificate, determine a new motor vehicle license plate number, annotate the transfer details in the motor vehicle registration certificate, and reissue the license plate, registration certificate, and inspection qualification mark. If the current motor vehicle owner's residence is not within the jurisdiction of the vehicle management office, the office shall handle the matter in accordance with the provisions of Article 13 of these regulations.
As a used car enthusiast, I've seen many dealers' vehicle acquisition processes. They typically transfer the car's ownership to their own name to legally possess and resell it to buyers. Without this transfer, the ownership remains with the original owner, making the transaction irregular and potentially causing issues when the dealer resells; for example, difficulties in transferring ownership to the buyer or liability disputes. I remember one time when a dealer bought an old car and immediately went to the DMV to complete the transfer. The subsequent refurbishment and sale went smoothly, and the buyer had no worries. There are many benefits to transferring ownership: it protects the dealer's interests, avoiding accidents or fines involving the original owner; it also simplifies the transaction chain, allowing dealers to resell faster and make money. As a consumer, when buying a used car, I recommend checking if the ownership transfer records are clear, ensuring the car is transferred directly from the dealer's name to the buyer, reducing risks. Don't overlook this step—it makes the entire transaction safer and more reliable.
I've observed that when used car dealers purchase vehicles, transferring the title to their own name is a standard practice, as businesses need clear ownership to facilitate sales. If the title isn't transferred, the vehicle technically remains under the original owner's name, which could invalidate the dealer's sale, cause buyers to fail in registration, or even involve them in legal troubles. From a commercial perspective, this practice controls risks: for instance, if the car has historical issues like unpaid fines, the responsibility shifts to the dealer after the title transfer, protecting both the original seller and the buyer. I understand that some large dealers transfer titles under company names for easier inventory management; however, they might skip this step during quick buy-sell transactions, though that increases risk exposure. Overall, proper title transfers ensure transparent transactions and reduce disputes. As a potential buyer, I would prioritize dealers with formal title transfer records to avoid pitfalls and ensure a worry-free purchase.
