If a Car is Returned After Buyer Misses Payments, Does the Seller Owe a Refund
My question involves collection proceedings in the State of: Arkansas
I sold my car without a contract. The person was all ways late or did not pay the agreed upon amount. She missed paying for 9 days and was to pay weekly. The total amount she paid was $750 toward the entire cost of $2450. Am I required to give her back the money she paid as she had the car for 31 days.
She called today wanting receipts for $450 of the amount she paid as she would drop off payment when she did pay before I could give her the receipt as she got off work before I did This has been a very tumultuous transaction. She received a receipt for the $300 she initially paid as we met in person. Do I have to give her the receipts or the money back.
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
I would advise her to return the car, have it checked out for damage, then refund her money and sell to someone with cash. Hopefully you did not transfer title also.
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
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katrinakathleen
I sold my car without a contract.
Actually, you do have a contract, an oral one. Just as enforceable as a written one, just harder to prove the terms and conditions.
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katrinakathleen
The person was all ways late or did not pay the agreed upon amount. She missed paying for 9 days and was to pay weekly. The total amount she paid was $750 toward the entire cost of $2450. Am I required to give her back the money she paid as she had the car for 31 days.
No, you aren't obligated to give her back any money and you can sue her for any missed payments.
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katrinakathleen
This has been a very tumultuous transaction.
That's your own fault for selling a car without getting all the money at time of sale.
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katrinakathleen
She received a receipt for the $300 she initially paid as we met in person. Do I have to give her the receipts or the money back.
Arguing about a receipt is dumb. You admit she paid you, give her a receipt for what she already paid you. Make sure you keep copies. If you made the mistake of not keeping a copy of the first one, make up a summary of payments in duplicate and keep one for yourself.
The alternative is to just take the car back and give her the money back that she has already paid or you'll be hassling with this for another year or two.
If you already signed the title over, she can sign it back over to you and then you give her the money.
Next time you sell a car don't make the same mistake. You're not smarter than a bank that won't lend somebody money.
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
I now have the car back. She had the car for 31 days. She wants her $750 back. Do I have to return it?
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
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katrinakathleen
I now have the car back. She had the car for 31 days. She wants her $750 back. Do I have to return it?
Here's how this works from a legal standpoint. Start with the premise that you cannot profit from her breach of the agreement. Doesn't matter how long she had the car.
Resell the car. Let's assume it's still in the same shape as when you gave it to her. If you sell it for $2450 you must refund the $750 or you can be sued for it.
If you are compelled to sell the car for less than $2450 due to market factors after making a reasonable effort to sell it for that amount you apply part of the $750 to your loss and refund the rest.
But you'd better be able to articulate a good reason for selling for less and keeping some of the money because a judge will want to hear it and will award her the $750 if he's not satisfied with your reasoning.
I suggest you send her written notice that she breached the agreement and you have to resell the car before she's entitled to any money back.
Meantime, if you decide to keep the car you must return the $750 because you cannot profit from her breach.
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
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katrinakathleen
I sold my car without a contract.
You say that you "sold" the car -- but are we in fact talking about a situation where the title remained in your name, and you planned to title the car over to the owner after the full purchase amount was paid?
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adjusterjack
No, you aren't obligated to give her back any money and you can sue her for any missed payments.
Casual readers, please note that adjusterjack gives a more complete explanation of the options and remedies in a later post.
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adjusterjack
Meantime, if you decide to keep the car you must return the $750 because you cannot profit from her breach.
In that context, there would be a plausible claim for ordinary wear and tear, as well as for any damage to the vehicle. The IRS guidelines for mileage reimbursement are often useful as a basis to argue ordinary wear and tear.
Re: If a Car is Returned After Buyer Misses Payments, Does the Seller Owe a Refund
That is correct about the title. I kept the title and was to give to the person buying the car when payment was fulfilled.
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I am a little confused in that in one post I was told that I didn't have to return this $750 and in another it said if I re-sell it i need to give Her back her money. Am I missing something?
Re: If a Car is Returned After Buyer Misses Payments, Does the Seller Owe a Refund
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katrinakathleen
That is correct about the title. I kept the title and was to give to the person buying the car when payment was fulfilled.
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I am a little confused in that in one post I was told that I didn't have to return this $750 and in another it said if I re-sell it i need to give Her back her money. Am I missing something?
Read AdjusterJack's second post, it is pretty clear there. If you resell the car then you need to refund her money, if you cannot sell for the same price you will need to prove why, and you only need to giver her back the difference between the sale price, and the amount owed. There are not a lot of good reasons to justify a significant price drop after 31 days other than damage she caused.
If you keep the car, you need to refund he money, you can withhold money if the car is damaged.
Re: If a Car is Returned After Buyer Misses Payments, Does the Seller Owe a Refund
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katrinakathleen
I am a little confused in that in one post I was told that I didn't have to return this $750 and in another it said if I re-sell it i need to give Her back her money. Am I missing something?
Before you accepted the return of the vehicle, it was explained to you that you had the option of keeping the partial payment and suing her for the balance she agreed to pay. You chose to accept the return of the car, so that option is no longer available.
Re: Sold Car Without Contract, Late Payments, Buyer Feturned Car, Wants Money Back
I checked the IRS guide for mileage reimbursement and for 2014 it is 56 cents a mile. She pit 1200 miles on the car in 31 days. If I mukfiply the miles times 56 cents that comes to $672. Can I deduct $672 from the $750 she paid me and pay her $78?