What is the difference between transferring and not transferring ownership when buying a car?
1 Answers
In essence, the difference between transferring and not transferring ownership of a vehicle lies in whether the vehicle is registered under your name. Only when the ownership is transferred to you do you become the true owner, and the vehicle genuinely belongs to you. If the ownership is not transferred, the vehicle still legally belongs to someone else. Below is additional information on the transfer process: 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, you must personally handle the transfer to avoid any mishaps in the process. 2. Documentation: Ensure the purchased vehicle has no outstanding violations. Bring the vehicle's five essential documents: the vehicle registration certificate, title certificate, insurance policy, road tax receipt, and purchase tax receipt (originals), along with the new owner's ID and a copy of the previous owner's ID. Follow the instructions at the relevant office to complete the process. 3. Insurance: Not transferring ownership significantly impacts the insurance process for the vehicle owner. According to insurance regulations, if the insured vehicle is sold, transferred, gifted, or its purpose is altered, the policyholder must notify the insurance company in writing and apply for policy adjustments. Once the insured vehicle is transferred, the original policy becomes invalid.
