The case where the seller is not the owner because, for example, he has rented, borrowed, or stolen the vehicle is problematical. According to Section 929 BGB, the non-owner cannot transfer ownership. Section 932 BGB provides for an important exception: acquisition in good faith.
The prerequisite is that the agreement on the transfer of ownership and the handover have actually been concluded. In addition, the buyer must be in good faith with regard to the seller's ownership. The decisive factor is the time of transfer. Good faith is presumed by law (Section 932 (1) BGB), but does not exist if the buyer knows or is grossly negligent in not knowing that the seller is not the owner (Section 932 (2) BGB).
Gross negligence is particularly evident if a buyer does not make further inquiries in suspicious circumstances. Such circumstances may include, for example, an unusually low purchase price, the absence of vehicle documents, or unusual transfer arrangements (e.g., in a parking lot). It is particularly important to inspect Part II of the vehicle registration certificate, as this is a strong indication of ownership. If this is not presented and the purchase is nevertheless made, gross negligence is deemed to have occurred. The fact that the vehicle registration document is not issued to the seller is not an unusual circumstance, at least in the case of commercial dealers.
With regard to the question of gross negligence, case law distinguishes between private and commercial buyers. In the case of private individuals, a more subjective criterion is applied, which takes into account the experience and diligence of the specific buyer. Gross negligence is only assumed here if there are clear grounds for suspicion. For commercial buyers, especially car dealers, however, a stricter standard of care applies. They are expected to carefully check the origin of the vehicle, even if it comes from abroad. If they fail to do so, they are generally acting with gross negligence.
An important restriction on acquisition in good faith can be found in Section 935 of the German Civil Code (BGB). According to this, acquisition in good faith is excluded if the item has been stolen from the owner, lost, or otherwise taken from them against their will. This also applies if the buyer was acting in good faith. Cases of embezzlement or theft of a vehicle during a test drive are not covered by Section 935 BGB, as in these cases the original loss of possession of the vehicle was agreed between the parties.
Conclusion: The acquisition of a vehicle in good faith pursuant to Section 932 BGB is generally permissible if there is an agreement and transfer and the buyer can assume in good faith that the seller is the owner of the vehicle sold. However, this protection does not apply in cases of gross negligence or stolen vehicles.