What Are the Consequences of Not Transferring Vehicle Ownership?
4 Answers
Not transferring vehicle ownership affects both the buyer and the seller to a certain extent and poses potential risks for future vehicle usage. For the seller, traffic violations committed by the vehicle will still be registered under the original owner. More seriously, in cases of hit-and-run incidents, the vehicle cannot be deregistered, and traffic violations cannot be processed, which may impact future vehicle purchases and registrations. For the buyer, failing to transfer ownership means the vehicle cannot be legally recognized as the buyer's private property. Procedures such as annual inspections and insurance claims will require involvement from the original owner. Additionally, according to traffic laws, the new owner must apply for a transfer of registration at the local vehicle management office within 30 days of the vehicle's delivery—meaning used car transactions must include ownership transfer. Vehicle registration primarily records the owner's name, address, and relevant vehicle parameters. Transferring ownership proves that the vehicle has no unresolved violations or accidents. Therefore, vehicles that are not transferred often have underlying issues, such as involvement in accidents, lack of annual inspections, being stolen, or being smuggled, and cannot undergo normal transfer procedures. Vehicle ownership transfer refers to changing the registered owner's name. Completing the transfer legally finalizes the change of ownership, ensuring the vehicle's legitimate origin (e.g., avoiding smuggled or stolen vehicles). It also clarifies the responsibilities between the buyer and seller regarding the vehicle, such as debt disputes or traffic violations, protecting the legal rights of both parties.
Let me explain this clearly to you, not transferring the vehicle ownership can be really troublesome. If the previous owner has unpaid traffic fines or unresolved accidents, their name is still recorded in the traffic police system. One day, if the police check the car and say it has a record, you won't be able to explain it clearly even if you're holding the keys. I've seen even worse cases where someone drove an untransferred car to get a mortgage loan, and the original owner ended up being harassed by debt collectors every day. If the original owner is in debt, the court might directly come to seize the property, and suddenly the car you're driving becomes impounded. Even worse, the annual inspection gets stuck because the vehicle management office only recognizes the name on the registration certificate!
Skipping the ownership transfer for convenience during a car sale can lead to endless troubles. Just the other day, a friend complained to me that the used car they bought failed the annual inspection because the registered ID information didn't match. The most frustrating part is dealing with insurance claims—if an accident occurs and you file for reimbursement, the insurer will reject your claim after checking the vehicle registration. Want to transfer ownership now? The previous owner has moved and can't be contacted! Take that accident car towed to the repair shop as an example—after three months of repairs, no one came to claim it, and a license plate check revealed it had changed hands twice last year. Oh, and if you want to sell the car, it's even more troublesome. Potential buyers seeing the registration under someone else's name will likely assume it's a stolen vehicle and walk away immediately.
I have personal experience with this. Last month, while helping a relative deal with an old car, I checked the records and found it hadn't been transferred for five years. The original owner used the original vehicle license to replace the green book (vehicle registration certificate), and then immediately pledged the car to a loan company. Now both parties are scrambling to tow the car—the loan company wants to repossess it with the registration certificate, while the current owner refuses to let it go, holding onto the keys. Even the police couldn't mediate the dispute. There's also a scary possibility: if the previous owner owes taxes, the tax bureau can directly freeze the vehicle's registration status. Oh, and if the original owner secretly scraps the car, you could be driving a scrapped vehicle the next day, resulting in an immediate 12-point deduction from your license.
