What is a Beihu Car?

[VonBlakely]

A Beihu car refers to a vehicle that cannot be transferred to another owner. Although it is a regular car with all procedures possibly completed, including valid annual inspections and insurance, the ownership cannot be legally transferred. The 'Beihu' phenomenon is a hidden risk in the used car market, posing potential dangers to both parties involved in the transaction. Despite the current scarcity of license plates in cities like Beijing, it is still safer to follow the proper transfer procedures. The risks that the original owner faces when selling a Beihu car include: 1. If the current owner commits a hit-and-run, traffic police will not pursue the current owner but will hold the original owner responsible. The original owner may be liable for medical expenses, nursing costs, other compensations, and even legal consequences in severe cases. 2. If the current owner violates traffic rules, the original owner will bear the penalties. 3. In first-tier cities like Beijing and Shanghai, the original owner may be unable to purchase a new car and register it under their name.

[EvelynLee]

A 'beihu car' refers to a situation where the person who pays for the vehicle is not the actual owner, and the car is registered under someone else's name. This is a common sight in our used car market. Many people opt for this for convenience in cities with license plate restrictions, finding someone with a quota to act as the 'registered owner' to hold the license plate while they actually drive the car. It's like a ticking time bomb! Just last week, I saw a guy who bought a used Mercedes-Benz through this method, only for the registered owner to flee the scene after drunk driving, resulting in the car being impounded by traffic police. As the actual user, he got dragged into legal trouble, with insurance claims stuck for three months, losing all his principal. To avoid such hassles, it's better to spend a few thousand more and go through the proper ownership transfer process.

[DelAaron]

Last week, Uncle Wang in our neighborhood ran into trouble with a 'beihu' car (a car registered under someone else's name). He helped his nephew, who works in another city, register a car under his name, but the nephew secretly used the vehicle as collateral for a loan. Now Uncle Wang receives debt collection calls every day, and his house was almost seized. In the case of a 'beihu' car, the registered owner legally owns the vehicle, but the actual payer and driver are someone else. This misalignment often leads to disputes—for example, when the car runs a red light, the ticket is sent to Uncle Wang, but the nephew is expected to pay for the repairs, leaving both parties unwilling to foot the bill. Not to mention the blame-shifting during annual inspections. I advise everyone not to engage in such arrangements just to save on license plate fees.

[LeJessica]

The most critical issue with a 'beihu car' is the legal ownership confusion. You pay for the car, but the registration certificate bears Zhang San's name. Legally, Zhang San can sell or mortgage the car at any time, and you can't stop him. If he owes someone money, the court can directly seize the vehicle. Traffic accidents are even more troublesome—the police will hold Zhang San accountable based on the registration, and he might shift the blame to you. If Zhang San doesn't cooperate in handling traffic violations or annual inspections, your car is essentially a lost cause. It's advisable to clearly define rights and responsibilities in the car purchase contract from the outset.