What does it mean to buy a second-hand car with a nominal owner?
2 Answers
Buying a second-hand car with a nominal owner refers to purchasing a used vehicle using someone else's ID card, and the ID card holder is called the nominal owner. Here are specific details about nominal owners: 1. Risks involved: If the current owner commits a hit-and-run, the traffic police will not investigate the current owner's responsibility but will attribute it to the original owner; the original owner will have to bear medical expenses, nursing costs, and other compensations; in severe cases, legal liabilities may also apply; if the current owner violates traffic rules, the original owner will be held responsible for the violations; in first-tier cities, the original owner cannot purchase a new car for license plate registration. 2. Advice: It is not recommended to buy a second-hand car with a nominal owner because once the 'nominal owner' passes away, it becomes extremely difficult for the actual owner to reclaim vehicle ownership, as the transfer procedures cannot be completed.
Buying a second-hand car with the title still under the original owner's name means you've paid for and are driving the car, but legally it's not yours. I experienced this firsthand when I bought a cheap SUV under such an arrangement. The seller claimed the car couldn't be transferred because the original owner had unpaid bank debts, locking the records. Six months later, the car was repossessed by the court, and I learned that 'title-held' cars can be seized by the original owner's creditors at any time. Moreover, annual inspections required coordination with the original owner, which was a hassle. Once, after an accident, insurance claims were stalled due to the name mismatch. The worst part was trying to sell it—nobody dared to take it. Now, whenever someone asks about title-held cars, I advise them to steer clear, even if it costs more to get a properly transferred title for peace of mind.
