Sold used car

[lisamc66]

Jurisdiction

Indiana

I sold a friend a used car she gave me 900.00 down and was to pay 50.00 a month but then she wanted a newer car so she wanted to wait for another one and now she doesn't want either car and wants her money back I told her that's fine but we would have to sell the car first Am I right or wrong?

 

[mightymoose]

You have the car and the money. You get to make the decisions.
If you say wait until the car sells then she will have to wait.

 

[adjusterjack]

Well, there's two ways this could work.

If you signed over the title to her it's her car and you can sue for the balance owed.

You have no obligation to accept the return of the car but if you do, make sure you get the title back.

If you get the title and the car back then you are correct. You get to resell the car so that you can be made whole.

Let's say the contract price was $1200 and she gave you $900 and reneged.

To determine your monetary damages you resell the car. If you sell it for $1200 with no additional costs, you are made whole and you give her back the $900.

If you are compelled to sell for less than the $1200 due to factors beyond your control (and you'd better be able to prove it) then she makes up the difference.

Like, if you sold it for $1100 she gets $800 back and you keep $100 to make up the difference. You get the idea.

 

[Highwayman]

You aren't a bank. In the future if a buyer can't hand over the cash then walk away from the deal and sell the car to someone else.

 

[zddoodah]

Am I right or wrong?

Right or wrong about what?

Did you transfer title or is title still in your name? If you did transfer title, did you take the appropriate steps to obtain a security interest in the vehicle to secure the monthly payments? How many $50 payments was she to make? How many did she actually pay? Was your agreement to sell the car in writing?

 

[txls]

Right or wrong in this case probably doesn't matter UNLESS you have impeccable documentation(contract) and you are willing to take her to small claims court and THEN if you obtain a judgment then you still have to try and collect what she owes. SO your best bet is to work it out with her. Now you say you sold to a friend, but it almost sounds like you are operating a business. Do you have the proper business licenses? Did she every take delivery of any vehicle?

 

[lisamc66]

Right or wrong about what?

Did you transfer title or is title still in your name? If you did transfer title, did you take the appropriate steps to obtain a security interest in the vehicle to secure the monthly payments? How many $50 payments was she to make? How many did she actually pay? Was your agreement to sell the car in writing?

No we didn't transfer title and she didn't take the car she just wants her 900.00back and that's fine with me but do I have to give it back before we sell the car I'm out 2500.00 because she changed her mind and no she didn't didn't sign anything

 

[txls]

If she never took the car then you really aren't out any money. You can try to withhold her money and hope she doesn't take you to small claims court, but it doesn't seem worth it to me.

 

[army judge]

No we didn't transfer title and she didn't take the car she just wants her 900.00back and that's fine with me but do I have to give it back before we sell the car I'm out 2500.00 because she changed her mind and no she didn't didn't sign anything

You have 900 EXTRA bucks, she has 900 FEWER bucks.

You have the car.

She has no car.

Why must she wait for you to return her money?

Hint: You have no valid defense to retain her money, even if you spent it.

In fact, without any written contract, she could say you robbed her of her 900 bucks.

 

[adjusterjack]

No we didn't transfer title and she didn't take the car she just wants her 900.00back and that's fine with me but do I have to give it back before we sell the car I'm out 2500.00 because she changed her mind and no she didn't didn't sign anything

My opinion, for the two cents that it's worth, differs from the others. You have an enforceable oral contract and you have the right to resell the car before giving her the money back, to make sure you are made whole.

That being said, It's Thursday afternoon. Put an ad in Craigslist and get it sold this weekend so you can be made whole and then give her the $900 back.

Any reason why you can't put it up for sale and sell it this weekend?

 

[zddoodah]

No we didn't transfer title and she didn't take the car she just wants her 900.00back and that's fine with me but do I have to give it back before we sell the car I'm out 2500.00 because she changed her mind and no she didn't didn't sign anything

Well...I submit that anyone who is stupid enough to give you $900 without anything in writing and without having title transferred can be easily manipulated and duped.

That said, I suspect your verbal agreement did not include any sort of provision about what would happen if the buyer backed out of the transaction before taking possession of the vehicle or making any of the monthly payments. If I'm right, then the buyer is in breach of the contract. However, your failure to obtain a written contract for the sale of goods in excess of $500 means the contract isn't likely enforceable. If the contract were enforceable, your remedy would be as described above by "adjusterjack."

If you don't give the money back, she may or may not sue you. Any lawsuit would probably be filed in small claims court, which should be quicker than regular court, but will probably still take at least a couple of months to go to trial. By that time, maybe you'll have sold the car to someone else.

By the way, your statement that you're "out 2500.00 because she changed her mind" is obvious nonsense. You have the car, you have the title, and, until you return the buyer's down payment, you have $900 you didn't have before.

One more suggestion: don't sell or buy a car to/from a friend unless you want to ruin the friendship.