What is the Difference Between Buying a Car with and without Transfer of Ownership?
3 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.
Buying a car and transferring ownership isn't just about completing formal paperwork to put the vehicle under your name—it's far more than just an extra document. I've seen too many people skip the transfer for convenience, only to face a heap of troubles later: if the car gets into an accident, insurance claims require the original owner's signature; for annual inspections, you'll need their ID copy. If the original owner goes missing, you'll be left helpless. Worse yet, if the original owner has debts, creditors might seize the car as collateral, leaving you with heavy losses and no recourse. After driving it for two years, if you want to sell, potential buyers will hesitate when they see no transfer records. So, I strongly advise you not to skimp on those few hundred bucks for the transfer fee—make that trip to the DMV for peace of mind.
Between friends, the most common mistake when buying and selling vehicles is being too lazy to transfer ownership—I learned this the hard way. On the surface, driving the car after it was handed over seemed fine, but legally, it was still the previous owner's asset. Later, when it came time for the annual inspection, I needed his documents, but he wouldn't even answer my calls. Once, the car got a parking ticket in another city, and since the system still registered him as the owner, his driver's license points were deducted, which made him unhappy and strained our friendship. Even worse, the insurance renewal could only be under his name, so when there was an accident, the claim payout went to his account—getting that money back was a nightmare! So no matter how close the friendship is, always handle the ownership transfer properly.
