What Does a Back-House Vehicle Mean? Is It Legal?
2 Answers
Back-house vehicle refers to a car that cannot be transferred, and buying such a vehicle is illegal. According to the "Resident Identity Card Law of the People's Republic of China," renting, lending, or transferring a resident identity card is illegal. Therefore, profit-driven "back-house" practices are unlawful. Agreements for selling vehicles through such backdoor methods are also not protected by law. Below is an introduction to back-house vehicles: Definition: A back-house vehicle is one that cannot be transferred. It may be a completely normal car with all necessary documents, valid annual inspections, and insurance, but it simply cannot be transferred. Reasons: The license plate's registered location is too far away, making the transfer process too costly; the vehicle might be used as collateral for debt, possibly multiple times; the original owner has passed away, and the vehicle was not deregistered; in areas with purchase restrictions, the license plate and vehicle are transferred together; vehicles from outside the region cannot be registered locally due to migration restrictions; some scammers may sell commercial vehicles converted to non-commercial use as back-house vehicles at low prices. Note: If the current owner flees after a traffic accident, the police will not pursue the current owner's responsibility but will instead attribute it to the original owner. The original owner may be liable for medical expenses, nursing costs, and other compensations; in severe cases, they may also face legal consequences.
A 'beihu' car is a vehicle that is registered under one person's name but is actually used by another. For example, in cities like Beijing and Shanghai where license plates are restricted, some people who can't obtain a plate themselves find someone else to act as the nominal owner. However, this practice is absolutely illegal because vehicle management regulations require the registered owner to be the actual user. Such false registration can involve tax evasion or circumventing purchase restrictions. I've seen many cases where insurance refuses to pay out in the event of an accident, and the nominal owner ends up bearing legal responsibility, leading to lawsuits and endless trouble for both parties. As a car owner or buyer, don't be tempted by short-term savings to engage in 'beihu' practices. The right way is to buy and transfer ownership through legitimate channels. Otherwise, it harms both parties, and the regret will be too late.
