Sold a Car by Payments, Kept Title in My Name Until Paid, and Car is Now Wrecked
Hello, first time poster here. Im not sure which is the best forum to post this in, but this looked to be the best one that i could find relating to what has happened to me.
Basically, I sold a car to a person in texas via contract in which was signed by both buyer and seller. The deal was to pay 1500 down and then 250 a month for 10 months for a total of 10 months.. 3500 total. upon completion of payment, title would then be signed over. If payment was late at anytime, the car would be taken back. This was agreed to and signed upon.
5 months passed without incident until payment was late by 2 months. Upon contacting the buyer to reposess the car, i had learned it had been in an accident, but no other cars were involved. The contract specifically stated that all damages were the responsbility of the buyer, and now he wants to return the car without being liable and without paying the remaining balance. I do want the car back, but I do feel he should be responsible for any repairs needed since that was part of the deal that the buyer agreed too.
I'm wondering what exactly my options are at this point. The contract was nothing official. Just a printed paper showing the date and terms of the deal, and had both buyer and seller signatures, which has me worried it will not hold up in any legal battle. At the moment, i've arranged a meeting to pickup the car tomorrow to see the damage and at least get it back into my hands before I decide to take further steps in what has happened.
Any suggestions? I kept this short but i have more details available if needed.
Re: Sold a Car by Payments, Kept Title in My Name Until Paid, and Car is Now Wrecked
It sounds to me that by taking possession of the car, you effectively have repo'd it and the contract is over. You can then sue for repair damages.
Or, take the person to court to have the contract fulfilled.
Did you make any stipulations about damage to the car during the payment peroid? Was insurance in the huyer's name or yours? Who benefitted from the payout?
Re: Sold a Car by Payments, Kept Title in My Name Until Paid, and Car is Now Wrecked
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Prometheus
The deal was to pay 1500 down and then 250 a month for 10 months for a total of 10 months.. 3500 total.
Can we work out a deal where I sell stuff to you for $3,500? Because that adds up to $4,000. ;-)
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Prometheus
5 months passed without incident until payment was late by 2 months.
By this time, you had collected $2,750, so there was a $750 balance.
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Prometheus
The contract specifically stated that all damages were the responsbility of the buyer, and now he wants to return the car without being liable and without paying the remaining balance. I do want the car back, but I do feel he should be responsible for any repairs needed since that was part of the deal that the buyer agreed too.
You can write whatever you want in a contract, but there's a point where a court is going to tell you to get real. Your penalties for so much as a late payment are so out of line, you should not expect a court to uphold them. Even assuming no accident, you are basically saying that you want to pocket $2,750 with only $750 owed, and also keep the car - quite the windfall to you. Here you want to try to pocket the $2,750, charge the person for repair, and also keep the car. I would be shocked if a court upheld those terms.
Let's say that it's a $3,500 car. You received $2,750. We'll assume $1,000 in damages. You get the car back, and it's now worth $2,250 ($3,500 - $250 depreciation for the last eight months - $1,000 needed for repairs). You now have, in essence, $5,000 in your pocket - the cash paid and the value of the car - and you want a court to give you more money?
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zedex
Did you make any stipulations about damage to the car during the payment peroid? Was insurance in the huyer's name or yours? Who benefitted from the payout?
I doubt the buyer could have insured the car, as there was never a transfer of title.