What to watch out for if a car is “under restriction”

Buying a car is exciting. Browsing, comparing, requesting offers—and when you find the right one, the real decision comes.

But what if the car you’re looking at seems too good to be true?

It may be that some kind of restriction is behind it.

In this article we explain what it means when a car is “under restriction”, and why it matters if you’re about to buy.

What is a restriction?

A legal or financial status that limits ownership rights related to the car—for example, it cannot be sold, cannot be transferred into a new owner’s name, or only under certain conditions.

We group the most common restrictions into three types:

1. Alienation and encumbrance ban

This is the most common case. The car may be:

• leased,
• registered as collateral for a loan,
• or under an authority‑imposed ban.

Key point: the car cannot be freely sold, because without the approval of the entitled party—typically a bank, leasing company or authority—no legal transaction can be carried out on it.

2. Enforcement right

In this case, the owner is subject to some kind of legal enforcement procedure—for example due to tax debt or unpaid fines.

Enforcement can extend to the car as well, which then cannot be sold or transferred.

3. Pledge

A pledge means the car is security for a claim—for example in relation to a bank loan.

The owner can sell the car only after the pledge is removed from the registry.

Why is it important to know this?

Because noticeably cheap or “too good” deals often hide restrictions like these.

For example, a car under an alienation ban cannot legally be sold. If the purchase still happens, the ownership transfer may later fail—and your money could be at risk.

✅ Instacar helps: you can check restrictions

In the Instacar app you can not only look at a car’s history or value, but also see whether there is any restriction registered on the vehicle.

This helps you avoid unpleasant surprises before purchase and make a confident decision.