Financed a car for a friend vol. repo

[noturninback]

Alright I financed my classic car to my friend who owns a mechanic shop a year and a half ago. The agreement was 500.00 a month for 18 months with 1000.00 down totaling to 10,000.00, he gave me the down payment and made 12 payments. He still owes me 3000.00 and I have NOT received a payment in 4 months. I still have the title to the car in my name and the keys its parked in front of his house. The agreement was verbal the only record we have in writing is the payment history that shows the date of the down payment and the past 12 monthly payments. After the last payment he made he wrote across the bottom "new balance 3000.00". I have the paper and he wrote all the payments on it we agreed that this method would be fine for both of us to keep record.  He has no record of payments all of them were cash one was a check but the memo line was blank. 
Now my question is can I just go pick up the car or do I have to file papers at the court house? Who has the upper hand in this deal if I do have to go to the court house?

 

[mrkane]

 

[thunderchunk69]

only 10k and it runs well?

wow, didn't know those cars go for so cheap.

 

[i won]

car is in your name, you have the upper-hand my good sir.  He gave you 1k up front and rented your car for $500 a month for X amt. of months, I consider that a WIN.

 

[mrkane]

Originally Posted by NoTurninBack

Alright I financed my classic car to my friend who owns a mechanic shop a year and a half ago. The agreement was 500.00 a month for 18 months with 1000.00 down totaling to 10,000.00, he gave me the down payment and made 12 payments. He still owes me 3000.00 and I have NOT received a payment in 4 months. I still have the title to the car in my name and the keys its parked in front of his house. The agreement was verbal the only record we have in writing is the payment history that shows the date of the down payment and the past 12 monthly payments. After the last payment he made he wrote across the bottom "new balance 3000.00". I have the paper and he wrote all the payments on it we agreed that this method would be fine for both of us to keep record.  He has no record of payments all of them were cash one was a check but the memo line was blank. 
Now my question is can I just go pick up the car or do I have to file papers at the court house? Who has the upper hand in this deal if I do have to go to the court house?

GO GET THE CAR. Its your car if the TITLE is in your name

  

 

[jayhood23]

Though I have no legal advice for you, I'd say go pick the car up and store it somewhere he can't find it. Call him and explain that he broke the agreement and when he is current on payments you will return it

 

[thunderchunk69]

Originally Posted by JayHood23

Though I have no legal advice for you, I'd say go pick the car up and store it somewhere he can't find it. Call him and explain that he broke the agreement and when he is current on payments you will return it

that sounds like good advice.
seems legally sound and somewhat friendly

 

[megatron]

Ask him why hes missing payments and if he will continue to. If he has no plans to continue then take the car back

 

[noturninback]

I have been looking at it as win myself if I go get the car I am not giving it back. The only reason I sold it was because I we had baby and needed the money more then the car at the time. Now I am on my feet and his shop looks like its going down hill. I just want to make sure if he attempts to sue me I have the upper hand when we go to court. I do not plan on giving him any money back he has been ducking me lately.

 

[thunderchunk69]

that's a beautiful car

is all I have to say, lol

 

[digital022]

Wow, you plan to keep the seven thousand AND take the car back? Its about to get ugly.

 

[cashbanks]

It's your car he never paid you in full go get that all win for you bro. Title is in your name and everything you should be golden worse case scenario I could see is maybe the judge says you gootta give him what he's already given you back but I honestly doubt that ...but I'm not a lawyer

 

[jayhood23]

Originally Posted by NoTurninBack

I have been looking at it as win myself if I go get the car I am not giving it back. The only reason I sold it was because I we had baby and needed the money more then the car at the time. Now I am on my feet and his shop looks like its going down hill. I just want to make sure if he attempts to sue me I have the upper hand when we go to court. I do not plan on giving him any money back he has been ducking me lately.

Strong SN to topic ratio 

But really though you're not obligated to give any $ back, its just like if a bank repos a car, they don't give you the $ you paid on it back. So in all actuality you're right in every way. Should've done better bookkeeping as far as an initial contract but you gave him the benefit of the doubt because he is your friend. Sucks that he didn't hold up on his end. 

 

[grizzly hebert]

All I can say is that you're one hell of a friend.

I'm not about to finance @@#! to or for anyone.

 

[mojodmonky1]

Originally Posted by JayHood23

Originally Posted by NoTurninBack

I have been looking at it as win myself if I go get the car I am not giving it back. The only reason I sold it was because I we had baby and needed the money more then the car at the time. Now I am on my feet and his shop looks like its going down hill. I just want to make sure if he attempts to sue me I have the upper hand when we go to court. I do not plan on giving him any money back he has been ducking me lately.

Strong SN to topic ratio 

But really though you're not obligated to give any $ back, its just like if a bank repos a car, they don't give you the $ you paid on it back. So in all actuality you're right in every way. Should've done better bookkeeping as far as an initial contract but you gave him the benefit of the doubt because he is your friend. Sucks that he didn't hold up on his end. 

while a bank may not be required to give the $ you paid on it back, they may very well be required to let the borrower make good on the past due payments and redeem the repo.

my company (a lender) does a fair amount of business where we require repo's, and there is a grace period that must pass before we can liquidate the asset because the debtor has to have a chance to pay up and get the vehicle back.

OP, in your situation its a little bit of a grey area since it was a verbal contract and chances are you guys didnt discuss any terms or stipulations about default and what can be done to cure any default.  Again, I'm not an attorney, but I think you are in good shape since its basically going to come down to a pissing match of he said/he said if he tries to sue you.  While it may not be difficult for him to prove to the courts that you guys had a verbal agreement for loan (his pay history should suffice), I have to imagine its going to be borderline impossible for him to prove that you are in breach of contract for repoing your car when he didnt make timely payments.

As the saying goes... posession is 9/10ths of the law.  If you have clean title in your name plus the phyiscal car, he's gonna be hardpressed to make any ownership claims against it.

If you want to be nice about it, maybe let him get the car back after he pays you the remaining balance owed plus an agreed upon penalty.  If you want to be a dicc about it and dead the friendship, keep the car and hit him with a "COME AT ME BRO" as you are standing in a very good spot as is.

EDIT:

If you are gonna go and pickup the car, DO NOT tell him in advance.  100% chance dude will hide it somewhere and tell you to kick rocks.  Just pretend like everything is all good then swoop by and get it when he doesnt expect it.  Do not store it at your house or any place where he will know to find it.

 

[jumpman0217]

If a bank repos your car, they will take it to auction. If your balance with them is $5000 and they sold it for $3000 you are still on the hook for $2000 and any fees associated with the auction. I say take the car back sell it to your pops or someone close for a grand and then your friend is still on the hook for 2 g's. Definite win if he's being grimey and ducking. you

 

[gregzzy23]

The title is in your name and there is no contractual agreement..pretty much a W for you. The fair thing would be to give him a chance to pay but depending on the circumstances like if your friend is dodging you..I might just keep it.

I dont see any grounds for him to sue you on

 

[noturninback]

Originally Posted by Mojodmonky1

Originally Posted by JayHood23

Originally Posted by NoTurninBack

I have been looking at it as win myself if I go get the car I am not giving it back. The only reason I sold it was because I we had baby and needed the money more then the car at the time. Now I am on my feet and his shop looks like its going down hill. I just want to make sure if he attempts to sue me I have the upper hand when we go to court. I do not plan on giving him any money back he has been ducking me lately.

Strong SN to topic ratio 

But really though you're not obligated to give any $ back, its just like if a bank repos a car, they don't give you the $ you paid on it back. So in all actuality you're right in every way. Should've done better bookkeeping as far as an initial contract but you gave him the benefit of the doubt because he is your friend. Sucks that he didn't hold up on his end. 

while a bank may not be required to give the $ you paid on it back, they may very well be required to let the borrower make good on the past due payments and redeem the repo.

my company (a lender) does a fair amount of business where we require repo's, and there is a grace period that must pass before we can liquidate the asset because the debtor has to have a chance to pay up and get the vehicle back.

OP, in your situation its a little bit of a grey area since it was a verbal contract and chances are you guys didnt discuss any terms or stipulations about default and what can be done to cure any default.  Again, I'm not an attorney, but I think you are in good shape since its basically going to come down to a pissing match of he said/he said if he tries to sue you.  While it may not be difficult for him to prove to the courts that you guys had a verbal agreement for loan (his pay history should suffice), I have to imagine its going to be borderline impossible for him to prove that you are in breach of contract for repoing your car when he didnt make timely payments.

As the saying goes... posession is 9/10ths of the law.  If you have clean title in your name plus the phyiscal car, he's gonna be hardpressed to make any ownership claims against it.

If you want to be nice about it, maybe let him get the car back after he pays you the remaining balance owed plus an agreed upon penalty.  If you want to be a dicc about it and dead the friendship, keep the car and hit him with a "COME AT ME BRO" as you are standing in a very good spot as is.

EDIT:

If you are gonna go and pickup the car, DO NOT tell him in advance.  100% chance dude will hide it somewhere and tell you to kick rocks.  Just pretend like everything is all good then swoop by and get it when he doesnt expect it.  Do not store it at your house or any place where he will know to find it.

I appreciate the insider info I have a place to store the car and a tow truck to pick it up I went to his house last night at 3 am and the car was still parked there. He stays 30 mins away he just called me asking for some tools he loaned me 3 weeks ago. I think I am going to have tell him to come pick up the tools from my house. At the same time have the tow truck pick it up the car to avoid a fight between him and the driver. 

 

[mojodmonky1]

if you have the keys how come you have to tow it?

 

[noturninback]

Originally Posted by Mojodmonky1

if you have the keys how come you have to tow it?

It has been parked for 2 years I dont know what condition the motor or suspension is in. I rather be safe then sorry.

 

[finessesosa]

Originally Posted by I WON

car is in your name, you have the upper-hand my good sir.  He gave you 1k up front and rented your car for $500 a month for X amt. of months, I consider that a WIN.

 

[realrubirosa]

If you wanted to go take your car back, I think you'd be legally safe to do so. Here is my logic:

In regards to "repossessing" your car:
The statute of frauds says that the sale of goods over $500 must be in writing; not an oral agreement. You sold your car for $10k so there legally has been no sale at all. Since there has been no sale, the car is not his; is still yours, and the title reflects such. You can't be charged for stealing your car from a person you never actually sold it to, and you can't be charged for trespassing on his land to do it if it's in the street; not on his land. You could, however, have an issue if he has personal stuff in the car and you take it away--might be better for you to take all the stuff out and leave it at his door or something to that effect. If it's his only car, he could try to make some sort of reliance claim saying that he relied to his detriment on the agreement to buy your car and now he can't get to work or whatever because you took the car. However, a court probably won't be too sympathetic to that since he should have gone the extra inch to make the sale official instead of try to sneak around TTL expenses by buying a car under the table.

In regards to the money:
Since there was no sale, he has no obligation to pay you the remaining $3k. However, a court may require that you repay him because you wouldn't deserve the $7k out of a mistake. However, you probably wouldn't have to repay him the entire amount since he did have use of the car for a full year and it would have depreciated (in value or in condition from use) during that time--depending on how you can calculate that, you may be able to find that you don't have to actually repay him much--if anything at all--but that could be difficult.

He could argue that his down payment, consistent payments, acknowledgement of a remaining balance on a check to you for a payment, and his possession of the car could imply that you guys had a contract and that it just hadn't been written yet. However, waiting a year to put a sale into writing doesn't sound reasonable. If you guys avoid the courts, make a new contract that refers to the original deal and acknowledges the previous payments toward the balance and expresses the terms, parties, price, and item very explicitly.
If the option is still out there, I'd just go talk to him and see what's going on rather than just make him wake up to a missing car and a stack of crap on his doorstep with a note on top reading,"Sorry, bro. Legally, we never had a sale so I took it back. HMU when you get your $$ right so you can have it back, pleighboi."

I'm not a lawyer. This is just my reasonable opinion on what could come of this in a hypothetical respect.

 

[djaward]

Before taking action, is he still your friend? Have you asked for payments? And his response?

 

[noturninback]

Originally Posted by djaward

Before taking action, is he still your friend? Have you asked for payments? And his response?

He has been ducking me for a few weeks but he just called asking for his tools, I have been calling him 2 times a week and he just does not answer. The last time I confronted him in person he just stood there with his tale between his legs saying times are hard at the shop and he is just getting by he tried to pay me with 700.00 in home depot gift cards but he wanted face value. I told him I didnt need time so I would only credit him with 350.00 so it didnt happen. That was 2 months ago...

 

[ksteezy]

The car is yours, your friend takes an L, unless he's about that life in which case you take the L.


That car is a beauty btw.