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  1. #1
    Join Date
    Apr 2011
    Posts
    5

    Default Can I Take Back a Car When Buyer Isn't Covering the Payments

    My question involves an auto loan or repossession in the State of: Texas.
    I let my sister took my car for agreeing she would pay me $300 a month. Verbal agreement no papers or written contract was made. But she is now 3 months behind on payment. At that time back in December,l was living in ga and just now moved here in tx. She hasn't made any payment since last January. She gave me 1400 down installment payment and one car payment which is $300 since then. The title and registration of the car is still on my name and I still have those document in my possession. My question is, Do I have the rights to take my car back from her since she has not made any payments at all??I And she is being so ugly about it. She said that if I take the car back, I'm the one who owes her 1700 total. I lost all my receipts during moving. What should I do at this point??? PLEASE HELP!! Thank you!!

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Can I Take Back a Car When Buyer Isn't Covering the Payments

    My question is, Do I have the rights to take my car back from her since she has not made any payments at all?
    Yup.

    She said that if I take the car back, I'm the one who owes her 1700 total.
    She is incorrect.

    Traditional lenders don't refund all that you've paid if they have to repo the car for non-payment, either.

  3. #3
    Join Date
    Apr 2011
    Posts
    5

    Default Re: Can I Take Back a Car When Buyer Isn't Covering the Payments

    Thank you so much for your Help!! And also for what I'm understanding, My car is insured under my mom's policy. Would she get in trouble if I come get the car and the police would be involved?? I'm planning to get my car sometime next week and put insurance on it before I drive it away. Should I just drive the car away and not letting my sister know that I took it or should I knock in her front door and let her know?? I really appreciate any more info about my issue is. Thank you again and God Bless!

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can I Take Back a Car When Buyer Isn't Covering the Payments

    I'm not so sure that she won't have a claim against you. You are not a traditional lender and even if you were, there are processes that must occur after a repo to ensure a market value sale (although that typically means a sale at a dealer auction which translates into a low sale value) with credit to the buyer if the amount recovered from the sale covers the amount owed on the car (including interest, contractual penalties, repo and sales costs).

    As the title owner, you can take possession of the vehicle. I suggest documenting your ownership and intentions to the police (not by calling 911, though - stop by the station) such that they understand that you own the car and what is going on if it's reported stolen.

    You've given us no sense of the market value of the car, or what your sister's total payment might be had she followed through with the deal. Let's say the car was worth $5,000 at the time of sale, She paid you $1,400 down plus making payments on the car reducing the loan balance by, let's say, another $300. Let's say that four months have passed and the car is now worth $4,700. She could conceivably make a claim against you for the amount she paid toward the value of the car ($1400 + $300 = $1,700) less the depreciation of the car over the period she used it ($300), or $1,400. Note that these are "made up numbers" - we have insufficient information upon which to project what her actual claim might be.

    You should suggest to your sister that if she wants to keep the car she needs to refinance it, paying off the balance of your loan, and take title in her own name. Your present arrangement not only puts you at risk of the current type of dispute, it puts you at risk of potential personal liability as owner and also potentially having your insurance deny coverage in the event that your sister is in an accident. If she pays off the loan, presumably that would resolve your concerns.

  5. #5
    Join Date
    Apr 2011
    Posts
    5

    Default Re: Can I Take Back a Car When Buyer Isn't Covering the Payments

    Thank you. It's a 2000 toyota celica. Last time I check on KBB it was worth 4500. That's the price I'm selling her the car for. The car is paid off already. I don't want anymore payments from since she's late 3months.I just want my car back.

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