What does 'beihu' mean in the context of used cars?
4 Answers
'Beihu' in used cars refers to vehicles that cannot be transferred to a new owner. A beihu car is completely normal in all aspects, with all possible documentation complete, annual inspections and insurance up to date, but it simply cannot be transferred. Below is an introduction to beihu cars: Reasons why vehicle ownership is not transferred after a transaction: The license plate's registered location is too far away, making the transfer process too costly; vehicles used as debt repayment; possible cases where the owner has passed away and the vehicle has not been deregistered; transfer of both the license plate and the vehicle in areas with purchase restrictions; out-of-town vehicles that cannot be registered locally due to migration restrictions; commercial vehicles converted to non-commercial use being sold cheaply as beihu cars. Impact of beihu: The beihu has the right to sell the vehicle or report it as lost, which could turn the vehicle into an unregistered one, and traffic police can legally impound it. Moreover, in the event of a traffic accident, the perpetrator is primarily held responsible. If the perpetrator flees, the vehicle owner must compensate first, so being a beihu also carries significant risks. Models of beihu cars: There are two models of beihu cars. The first model is individual beihu, where the original vehicle is registered under an individual's name. The second model is corporate beihu, where the original vehicle is registered under a company's name.
I've run a used car dealership for over a decade and seen too many cases of 'beihu' (nominee ownership). So-called 'beihu' means you buy a car but don't transfer ownership, leaving the original owner as the nominal title holder while you're the actual user. This is quite common in cities with purchase restrictions - for example, using someone else's license plate quota when you haven't won the lottery. But the risks are enormous: legally the car still belongs to someone else. If they secretly use it as collateral for loans or later try to reclaim it, you'd have no recourse. Plus, you'd need the original owner's cooperation for insurance claims and annual inspections, which is extremely troublesome. Worst of all, if an accident occurs, the legal responsibility falls on the registered owner - not only causing trouble for them but also putting you in jeopardy. My advice is to avoid nominee ownership deals if possible. If you must proceed, at least sign a formal contract for some protection.
My friend got screwed by a 'beihu' car last week, and I have a lot to say about this. A 'beihu' car is one you pay for but don’t transfer ownership—the seller’s name stays on the title. It might sound like just a name issue, but it’s full of hidden risks. The car seemed fine to drive, but when it came time for the annual inspection, they found out the original owner had unpaid debts, and the car got impounded by the court. Even worse, when filing an insurance claim, the seller refused to cooperate with providing documents. The biggest scam with 'beihu' is the unclear ownership—legally, the car still belongs to the original owner. All the money you spend on maintenance and repairs could go down the drain because they can reclaim the car anytime. My friend is now losing sleep over it every day. My advice? When buying a used car, the first thing you should do is transfer the title. Don’t skip this step, even if it costs extra.
A 'beihu' car is essentially buying a car under someone else's name. For example, if you can't get a license plate in a big city through the lottery system, you might ask someone who qualifies to register the car for you, while you still get to drive it. Sounds convenient, right? But there are many hidden risks. The vehicle's registration certificate still bears their name, meaning legally they can take the car back anytime. It gets worse if you're financing the car—banks can't even locate the actual owner. The most extreme case I've seen was when, after two years of driving, the registered owner suddenly demanded extra compensation or threatened to reclaim the car, and even the police couldn't help. Another friend got into an accident on the highway, and the insurance company refused to cover the claim because the registered owner wouldn't cooperate. If you're serious about buying a used car, it's best to go through the proper ownership transfer process—these headaches aren't worth the risk.
