What Are the Risks of Not Transferring Ownership of a Car?
3 Answers
Not transferring ownership can lead to legal liabilities if an accident occurs and the driver flees. The details are as follows: Risks of not transferring ownership: After purchasing a used car, it is essential to transfer the ownership. If the ownership is not transferred, the buyer only has the right to use the vehicle but not the ownership, since the name on the Motor Vehicle Registration Certificate is not the buyer's. This poses a significant risk to the buyer. Complete documentation is necessary: When buying a used car, always check if the vehicle's documentation is complete. If the documentation is incomplete and the ownership cannot be transferred, there is no need to proceed with inspecting the car. Similarly, if incomplete documentation prevents the car from being legally driven on the road, inspecting the car further is unnecessary. After confirming the car's documentation, you should then evaluate the vehicle's condition and price.
I've been driving for almost 20 years and have encountered several cases where friends bought used cars without transferring ownership, which turned out to be a real headache. For example, if the ownership isn't transferred, the car remains registered under the original owner's name. If the original owner has unpaid car loans or fines, banks or traffic police might come after the new owner. Worse, in case of an accident, the police and insurance companies may not recognize the new owner as the legal possessor, making compensation claims tricky. During annual inspections, the DMV requires documents from the original owner. If they can't be found, the car fails inspection and might end up being scrapped. Additionally, if the new owner wants to sell the car, buyers seeing the lack of ownership transfer might lowball or refuse outright, costing thousands. The biggest issue is the hidden legal risks—the original owner could claim the car was stolen, forcing the new owner into costly, time-consuming lawsuits. No matter how cheap the car, completing the ownership transfer is essential to protect both parties from these potential disputes.
I once helped a relative deal with a car that wasn't transferred, and I found it had numerous risks in daily use. When filing insurance claims, insurance companies often check the vehicle registration details. If they find the name doesn't match, they're likely to deny the claim, especially in cases of collisions requiring repairs. There are also tax issues—if the original owner missed paying the vehicle and vessel tax, the new owner will be chased by tax authorities for payment, adding extra costs. The annual vehicle inspection is another hurdle—the new owner must provide the original owner's documents to complete it; otherwise, the car can't be driven legally. Not to mention safety concerns—if a minor accident occurs, the other party might exploit the lack of transfer to escalate liability. Plus, when reselling the car in the future, its value plummets because potential buyers fear disputes. I think transferring ownership is like buying insurance for the car—spending a little money saves countless troubles, especially with used cars. Don't skip that step. Drive carefully—these risks can ruin a good mood.
