What Does a Back-House Vehicle Mean?
2 Answers
Back-house vehicle refers to a car that cannot be transferred. Below is a detailed explanation: 1. A back-house vehicle is also an ordinary car, all procedures may have been completed, and annual inspections and insurance are normal, but the transfer of ownership is not allowed. 2. A back-house vehicle refers to a situation where an out-of-town individual spends money to find a local resident with household registration in the city to borrow their ID card for car purchase procedures. 3. Due to legal regulations, out-of-town individuals purchasing used cars in a certain city cannot directly transfer the vehicle under their own name. 4. Before September 2005, China's automobile management regulations stipulated that used cars under local management could not be sold or auctioned in other regions, requiring cross-region transfer registration. The vehicle's exit procedures were handled by the public security traffic management department at the place of origin, and the entry procedures were handled by the public security traffic management department at the destination. Hence, the phenomenon emerged where 'back-car groups' would pay a local resident to borrow their ID card for purchasing a vehicle.
Last time I wanted to buy a used car in a license-plate-restricted city, I happened to learn about the concept of a 'beihu car.' Simply put, it means the car is still officially registered under the original owner's name, but the buyer has already paid for it and is using it. This mainly happens in places where license plate quotas are tight, like Beijing or Shanghai, where the buyer can't transfer ownership due to lack of a quota, so they end up driving the car unofficially. This type of transaction carries significant risks: if the original owner has debts or changes their mind, the car could be repossessed or mortgaged, leaving the buyer with heavy losses. There are also hassles with insurance and annual inspections. A friend of mine got burned this way and had to go through a lawsuit to get out of it. My advice is to always transfer ownership when buying a car. If you really have quota issues, go through a legitimate intermediary for temporary arrangements—don’t cut corners for the sake of convenience or cost.
