Risks of Co-signing a Motorbike in Vietnam

“Xe chạy tên người” – a common Vietnamese saying about registering a vehicle under someone else’s name. But is co-signing for a motorbike as simple as it sounds? This article delves into the complexities of this practice to help you make an informed decision.

Person signing motorbike paperwork

What is Co-signing for a Motorbike? Pros and Cons

Co-signing for a motorbike simply means you legally own the vehicle on paper, while someone else uses it and pays all associated costs.

Advantages

• Helping friends and family: This is the primary motivation for many people who co-sign.
• Simple procedure: The registration process for co-signing is no more complicated than registering a vehicle in your own name.

Disadvantages

• Legal risks: This is a double-edged sword that requires careful consideration. As the registered owner, you bear the legal responsibility for the motorbike. If the borrower violates traffic laws, causes an accident, or even uses the vehicle for illegal activities, you could be held liable.
• Property disputes: In case of conflict, proving the actual ownership of the motorbike can be challenging.
• Impact on future vehicle purchases: In some localities, registering multiple motorbikes under your name might hinder your ability to purchase new vehicles.

Estimated Costs for Motorbike Co-signing Services (Reference)

Note: This table is for reference only. Actual costs may vary depending on location, time, and agreement between parties.

Frequently Asked Questions about Motorbike Co-signing

Is co-signing for a motorbike punishable by law?

Co-signing for a motorbike is not illegal, as long as both you and the borrower fulfill all legal obligations related to the vehicle. However, you should be aware of the potential legal risks mentioned above.

How can I protect my rights when co-signing for a motorbike?

To protect yourself, you should create a motorbike loan agreement with complete information, signatures of both parties, and notarization by local authorities. The agreement should clearly state each party’s responsibilities, especially the legal responsibilities related to the motorbike.

Motorbike loan agreement

Should I use a motorbike co-signing service?

Numerous motorbike co-signing services have emerged, especially in major cities like Hanoi. However, exercise extreme caution when using these services. Choose reputable providers with clear addresses and legally binding written agreements to avoid risks.

Conclusion

Co-signing for a motorbike often stems from good intentions but carries significant risks. This article provides a comprehensive overview of the issue. Be a responsible motorbike user, abide by the law, and prioritize your safety.

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