What is the Difference Between a Beihu Car and a Mortgage Car?

1 Answers
DiAlex
07/29/25 10:28pm
The differences between a Beihu car and a mortgage car: 1. No transfer of ownership: A "Beihu car" refers to a vehicle that cannot be transferred to another owner. The difference between it and other types of cars such as "mortgage cars," "stolen cars," or "cars with excessive violations" is that a "Beihu car" is a completely normal vehicle with all necessary documentation, normal annual inspections, and insurance, but it just cannot be transferred to another owner. 2. Contract transfer: A mortgage car is a type of creditor's rights transfer under contract law. "Creditor's rights transfer," also known as "assignment of claims," refers to the transfer of a contract without changing its content. The creditor transfers all or part of the creditor's rights to a third party through a contract. Article 79 of the Contract Law of the People's Republic of China stipulates that after the creditor's rights transfer takes effect, the debtor and creditor may agree that a third party will perform the debtor's obligations instead. Creditor's rights transfer is protected by national law, and mortgage cars are part of the creditor's rights transfer law. 3. Price: Since a "Beihu car" cannot be transferred to the buyer's name, its price is naturally much lower than that of a normal transferable car. Generally, those sold with a complete set of documents, including the registration certificate, vehicle license, insurance, and a copy of the owner's ID card, will not have financial disputes. You only need to check the vehicle's current records (those in the used car business know how to retrieve records, requiring only the license plate number). Buyers should also pay attention to the authenticity of the records, as nowadays, a set of documents that look exactly like the real ones can be made for just five or six hundred yuan, making it difficult for ordinary people to distinguish between genuine and fake.
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