What does a 'beihu' car mean?

[DanielaRose]

A 'beihu' car refers to a vehicle that cannot be transferred to a new owner. Although it is a completely normal car with possibly complete documentation, valid annual inspections, and insurance, the ownership cannot be transferred. Reasons for this include: the license plate's registered location being too far away, making transfer costs prohibitively high; the car being used as debt collateral, possibly having been pledged multiple times; the original owner having passed away without the vehicle being deregistered; or the car being sold with its license plate in areas with purchase restrictions. Risks for the original owner selling a 'beihu' car include: 1. Legal liability: If the current owner commits a hit-and-run, traffic police may hold the original owner responsible for medical expenses, nursing costs, and other compensations, with severe cases leading to legal consequences. 2. Traffic violation liability: The original owner may be held accountable for any traffic violations committed by the current owner. 3. Inability to register a new car: In first-tier cities, the original owner may be unable to purchase and register a new vehicle.