What Are the Impacts of Frequent Vehicle Ownership Transfers?
2 Answers
Frequent ownership transfers of motor vehicles can affect their selling price. The more transfers there are, the lower the price tends to be. A higher number of transfers indicates that the vehicle has been sold multiple times, suggesting that its condition may not be ideal and it may not be suitable for long-term use. The original owner of a used vehicle needs to provide documents such as the registration certificate, vehicle license, and ID card. The buyer needs to provide an ID card, and if they are from another region, a residence permit or temporary residence certificate is required. The first step in transferring vehicle ownership is a vehicle appraisal. The appraisal fee is generally 1%-2% of the appraised vehicle price, and other costs include fees for the license plate and vehicle license. The original owner's commercial insurance can be canceled (compulsory insurance cannot be canceled), or the insurance can be transferred to the buyer at the insurance company. Things to note when buying a used car: Incomplete documentation. Complete documentation for a used car includes: the vehicle registration certificate (or original purchase invoice), vehicle license, vehicle purchase tax payment certificate, road maintenance fee records, and compulsory insurance. Missing documents like the vehicle registration certificate or vehicle license, or unpaid compulsory insurance and road maintenance fees, can cause endless trouble for the buyer. Therefore, if the seller cannot provide complete documentation, buyers should be especially cautious. Tampering with the odometer. Most buyers rely on the odometer to judge a vehicle's condition, and sellers often take advantage of this by tampering with the odometer. In fact, the odometer is not just an indicator of usage intensity but also a record for the maintenance and replacement of other vehicle components. If buyers follow the tampered odometer readings for maintenance, it can lead to a series of potential safety hazards. New paint covering "external injuries." When buying a used car, if the car has been repainted and there are signs of repairs around the front, rear, and A, B, C pillars, the vehicle may have been involved in a major accident. "Tuning the heart" to raise the price. Many buyers focus too much on the car's "heart" (engine) and neglect the health of the body. Used car sellers take advantage of this by replacing engine components to make the "heart" appear younger, thereby inflating the price.
I often help friends check out used cars, and the most obvious impact of a car with multiple ownership transfers is that it depreciates quickly. When it was initially valuable, no one wanted to sell it, but multiple transfers make the car seem problematic, or indicate that previous owners didn’t maintain it properly—core components like the engine and transmission might be damaged. In the market, a car with three ownership transfers can be priced 20% lower than one with just one transfer. Buying such a car carries high risks, as buyers worry about getting a repaired accident vehicle or hidden defects. I always remind them to check the vehicle history report—some platforms like Car Inspection can reveal past records. Additionally, insurance premiums may increase because insurers see it as higher risk. Maintenance can also be troublesome, as missing history might lead to repeated repairs, wasting money. Overall, this isn’t a good choice for the average car owner. I once dealt with a car that had two ownership transfers, and after taking it over, the brake system kept causing issues—it was really frustrating.
