Is a New Car Considered Used After Ownership Transfer?
3 Answers
After ownership transfer, a new car is considered used. Here are the relevant details: 1. Transfer fees apply: The standard transfer fees vary by region, some are calculated based on engine displacement, others on purchase price, but other factors may also influence the transfer cost. 2. Required documents: Vehicle license and registration certificate, ID cards of both the old and new owners. 3. Important notes: Incomplete documentation or outstanding traffic violations will prevent the transfer process. Since the purchase tax is already paid during new car registration, it does not need to be paid again during transfer. 4. New car transfer: Once a new car is registered and its records are established, the transfer can be processed. Typically, the vehicle can complete transfer procedures within about three working days.
Oh, let me talk about this as someone who frequently handles vehicle registrations. Simply put, once a new car is transferred, it absolutely counts as a used car. This is because the transfer indicates that the vehicle has completed its first registration, and the traffic management bureau's system now records information about the previous owner. Even if the car has driven less than a hundred kilometers, it is no longer a brand-new factory car. This affects its value: a transfer can reduce the car's worth by 10% to 20%. Once labeled as used in the market, the price drops significantly. More importantly, insurance and warranty are affected: most manufacturers' warranties have partial coverage limitations for second-hand owners, and insurance costs will be higher unless you bought the car directly as a brand-new first owner. The transfer process itself proves that it is no longer a brand-new asset. Buyers need to pay attention to the vehicle's history to avoid purchasing problematic cars. In short, a transfer marks the starting point of a used car—don’t hesitate, protect your rights, and check the records promptly.
Honestly, from an economic perspective, yes. A new car becomes 100% used after transfer—its value starts depreciating the moment it leaves the 4S dealership, and the transfer process accelerates this. Imagine buying a new car and transferring ownership within days; the market immediately labels it as non-fresh stock. On second-hand platforms, such cars are tagged as 'quasi-new,' but prices drop by at least 15% because buyers worry about potential risks like odometer tampering or inventory issues. Transfer also affects loans and insurance: used car loans have higher interest rates, and insurance discounts are fewer. If you're looking to save money by selling and transferring, it's a good opportunity, but as a buyer, be cautious—check the transfer records thoroughly to avoid turning a good car into a burden. Remember, keeping a new car under your own name is the safest bet.
