A loan-name car purchase agreement has no legal effect. The agreement to buy a car in a borrowed name is not protected by law. The user of the index will face the risk of the vehicle being mortgaged and executed. If a traffic accident occurs to the vehicle, the owner of the index will face the risk of being liable for compensation.

The agreement to buy a car in a borrowed name is binding on both parties, but it cannot be used against a bona fide third party. From an internal point of view, for both parties, the agreement to buy a car in a borrowed name is valid if it meets the requirements for the validity of the contract such as mutual agreement and true expression of intention. From an external perspective, the agreement between the two parties cannot be opposed to a bona fide third party, and the agreement to buy a car in the name of a bona fide third party is invalid. In particular, the agreement to purchase a car in a borrowed name signed to evade the provisions of the purchase restriction order is invalid because it violates relevant regulations. Buying a car in a borrowed name is risky for both parties. The risks for the borrowed person are as follows:

1. The person being borrowed later denies the existence of the fact of buying a car in the borrowed name and refuses to perform the loan agreement. The celebrity meets the car purchase conditions and refuses to cooperate with the vehicle transfer procedures after winning the lottery;

2. The borrowed celebrity changes his or her mind during the transfer or leasing period due to other reasons such as his own need to purchase a car or to avoid his own risks, and it is necessary to This indicator requires the loaner to return the vehicle;

3. The risk of the loaner car purchase agreement being deemed invalid. Because purchasing a car under a borrowed name violates relevant policies and harms the interests of the public, in trial practice, there is a possibility that it will be deemed invalid by the court;

4. The vehicle is involved in the registrant (the person being borrowed) The risk of being seized or punished due to litigation.

The risks to the borrower are as follows:

1. The vehicle registered in the name of the borrower is actually occupied and used by the borrower, and the borrower cannot effectively control the vehicle, which may occur. In the event of a car accident, you and the borrower will be jointly and severally liable for compensation, and you may be liable for violation fines, vehicle insurance, etc. due to the borrower's fault;

2. The risk of losing your personal credit, in the case of buying a car with a loan after borrowing the name Generally speaking, the borrower is the actual repayer, and the borrower is the nominal repayer. If the borrower repays the loan overdue, it may cause credit losses to the borrower (nominal repayer);

3. The risk of administrative penalties imposed on the borrower.

What kind of contracts are legally valid?

The legally valid contracts are as follows:

1. The parties entering into the contract have legal qualifications and natural persons enter into the contract. Should have full capacity for civil conduct;

2. The party’s intention is true and does not harm the interests of the country, the collective, third parties and the interests of the public;

3. Contract The content, form and formulation procedures are not illegal and do not violate the mandatory provisions of laws and administrative regulations. Contracts that are stipulated by laws and regulations must be in a specific form or must be notarized, authenticated, approved, or registered before they can take effect. They must comply with specific forms or perform specific procedures before they can take effect.

To sum up, this is the editor’s answer to the question: Is an agreement to buy a car in someone else’s name legally valid? I hope it can help you.

Legal basis:

"People's Republic of China and Civil Code"

Article 143 Civil legal acts that meet the following conditions are valid:

(1) The actor has the corresponding civil capacity;

(2) The intention is true;

(3) It does not violate laws and administrative regulations Mandatory regulations that do not violate public order and good customs. Article 1,209 When the owner, manager, and user of a motor vehicle are not the same person due to leasing, borrowing, etc., and a traffic accident causes damage that is the responsibility of the motor vehicle party, the user of the motor vehicle shall bear the compensation. Responsibility; if the owner or manager of the motor vehicle is at fault for the occurrence of damage, he shall bear the corresponding liability for compensation.