What is the Difference Between Buying a Car with and without Transfer of Ownership?
1 Answers
The fundamental difference between transferring and not transferring vehicle ownership lies in whether the vehicle is registered under your name. Only when the ownership is transferred to you do you become the legitimate owner, and the vehicle truly belongs to you. Without transfer of ownership, the car remains someone else's property. Below is additional information on ownership transfer: 1. Used Cars: When purchasing a used car, transferring ownership is a mandatory procedure. Moreover, unless you have a trustworthy individual or agency acting on your behalf, it is essential to personally handle the transfer process to avoid any oversights in the paperwork. 2. Procedures: Ensure the purchased vehicle has no outstanding violations. Bring the vehicle's five essential documents: the vehicle license, registration certificate, insurance policy, road maintenance fee receipt, and purchase tax certificate (originals), along with the new owner's ID and a copy of the previous owner's ID. Follow the instructions provided by the processing authority. 3. Insurance: Not transferring ownership significantly impacts the process of purchasing insurance for the vehicle. According to relevant insurance laws, if the insured vehicle is sold, transferred, gifted, or its purpose is altered, the policyholder must notify the insurance company in writing in advance and apply for policy amendments. Once the insured vehicle is transferred, the original policy becomes void.
