What does 'beihu' mean?

[CamillaAnn]

Vehicle 'beihu' refers to the situation where a used car cannot be transferred to the buyer during a transaction, resulting in a discrepancy between the buyer and the registered owner of the vehicle. A 'beihu' car is one that cannot be transferred, even though it may be a completely normal vehicle with all necessary documentation, valid annual inspections, and insurance. The primary reasons for not transferring ownership after a vehicle transaction are as follows: Reason 1: The license plate's registered location is too far away, making the transfer process too costly. Reason 2: The car is used as debt collateral, and it may have been involved in multiple rounds of debt settlements. Reason 3: The original owner has passed away, and the vehicle has not been deregistered, leading to the transfer of both the car and its license plate in areas with purchase restrictions. Reason 4: Out-of-town vehicles cannot be registered locally due to migration restrictions, and some scammers may sell commercial vehicles converted to non-commercial use as 'beihu' cars at low prices.

[VanMargaret]

The term 'beihu' is quite common in the used car circle. Simply put, it means the car is not registered under your name but you're the one driving it. Last time when I accompanied a friend to check out a car, we encountered this situation: that fairly new SUV was priced unusually low, and the seller frankly admitted the registered owner was a distant relative's name, because the original owner had debt issues preventing the transfer. Driving such a car isn't a big problem, but annual inspections and selling it can be particularly troublesome. I remember my friend struggled with the decision for a long time, ultimately not daring to buy it, fearing the real owner might suddenly show up to claim the car, or getting dragged into legal disputes due to the original owner's issues. Actually, 'beihu' cars are quite common in cities with purchase restrictions, like Beijing and Shanghai where people can't get license plates through the lottery system—they register cars under others' names. But if the other party changes their mind or an accident occurs, dealing with it can really give you headaches for half a month.

[McIsabel]

A 'beihu' car essentially means the registered owner and the actual user are not the same person. I once chatted with a used car dealer, and he said 'beihu' cars can be 20-30% cheaper than regular cars, which attracts many bargain hunters. But buying such a car is like renting a house without signing a contract - while it may save you money and hassle in the short term, you bear all the risks. For example, if the original owner has debts and the court seizes their assets, the car might be towed away directly. Or when you want to sell the car, you must locate the registered owner to complete the transfer - if they're unreachable or suddenly demand extra fees, you'll have to swallow the loss. Moreover, with increasingly strict traffic regulations, insurance claims for accidents involving 'beihu' cars can become complicated disputes.

[LeLawson]

From a legal perspective, back-registered vehicles are quite risky. The name on the vehicle registration certificate determines who is legally recognized as the owner. I've handled several cases: someone driving a back-registered vehicle caused a serious accident, and after the insurance refused to pay, the actual user was ordered to pay millions in compensation; another person bought a back-registered car and drove it for three years, only for the original owner to secretly use the registration certificate to secure a loan, resulting in the car being repossessed by a finance company. It's especially important to note that if the registered owner is involved in money laundering or criminal activities, your vehicle could be frozen for investigation. Buying a back-registered car may seem like a way to save money, but it's essentially gambling with luck. I recommend thoroughly checking the vehicle's status before transferring ownership, and it's best to have the seller provide third-party guarantees.