What Are the Impacts on the Original Owner If a Car Is Sold Without Transferring Ownership?
2 Answers
1. Potential Losses for the Vehicle Owner: For example, if the car was purchased with a loan and the original owner sells the vehicle without completing the loan repayment, and the buyer fails to transfer ownership, the bank has the right to repossess the car. Similarly, if the vehicle is mortgaged to a financial institution and payments are stopped, it may ultimately result in financial losses for the buyer. 2. Financial Disputes: As vehicles are considered part of one's assets, disputes arising from family or property matters could lead to complications if the original owner changes their mind, resulting in more losses than gains. Additionally, if the original owner is involved in financial disputes leading to legal action, the court may freeze all vehicles registered under their name.
I reckon this is no small matter. Selling a car without transferring the ownership means the vehicle is still registered under your name. If the new driver hits someone or commits a traffic violation, the police will directly trace the owner's information and come knocking on your door. You might have to spend time and effort explaining, or even bear responsibility and compensation. Insurance is another big issue—without the ownership transfer, the insurance company still considers you the owner. If an accident occurs, you'll be on the hook for claims, and it might even affect your premium discounts the following year. Worse yet are the tax issues. If the new owner doesn’t pay the vehicle and vessel tax, the government will come after you when they pursue payment, which could affect your personal credit record. I know someone who sold their car without completing the transfer and ended up with a pile of fines. It took them over half a year to sort it out—a lesson worth remembering.
