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I bought a car and made payments on it for two years before I sold it last year to a friend. He took over my car payments but the loan is still in my name. Since he’s had the car he has never made his payments on-time and sometimes I even had to pay a car note. I have to constantly remind him of the due date of the car payment like he is a child. He still won’t make the payment on the correct date. He just recently made up for two payments that I previously paid for him. To date he is a whole month late on his July car note and I have not recieved his August payment yet. Am I able to repossess the car back and just keep it for myself so that my credit will not be destroyed by his late payments? I know that I have always made regular payments when the car was with me and I don’t want the bank to come and repossess it and have that on my credit.
If I get the car back, will I be taking it illegally since he has made payments on it? And will he be able to take me to court for it?
Also, would I have to pay him back any payments that he made after I repossess it?

5 Comments »

1. 

   First of all, you didn’t "sell" the car. It’s still yours, so you can take it back any time you want, especially when payments aren’t made as they are supposed to. It’ll be on your credit regardless of what happens. If your friend doesn’t pay, it goes on your credit.

   Second, don’t ever "sell" a car to anyone unless they are able to provide their own financing. You got yourself into this situation. The reason your friend couldn’t get his own financing is that the banks considered him too high a risk. Did you expect that he would suddenly change his credit habits for you?

   Good luck with that. I do hope it works out. Take the car back now!!

   Comment by terje_treff — April 21, 2011 @ 6:38 am

2. 

   When you’re name is on the contract, it is actually you who is making the payments. The finance center where you made up the paperwork is reporting your name to the credit profile agencies. They are not going to willingly transfer the name on this agreement, as it hasn’t been completed until the last payment (with interest) has been made. If it’s a lease you have, there are big penalties for terminating a lease early. If your friend wants ownership of the vehicle, then they would have the title for the vehicle transferred from your name to theirs at the DMV, provided of course that you’re willing and have received the full selling price you asked for. This, of course, is assuming that you own the vehicle, but you don’t at this point.

   The car dealers finance or lease center can enforce a liens and repo the car if the contract goes into default status. So, are you willing to continue giving risk free financing to your friend while you risk losing the car and your credit worthiness…I have to say that you made a bad deal for yourself. But at least now you should be smarter for it. Politely tell your friend that you are reassuming full responsiblity for the car payments because of his poor payment history. If he doesn’t want to cooperate, report this situation to the car dealership; they can send a towtruck to his place and bring the car back to you.

   Comment by Bruce Almighty — April 21, 2011 @ 6:38 am

3. 

   Yes, you can. Unless you have it in the contract that you can’t unless he misses a certain number of payments.

   Comment by Shaq iz Phat — April 21, 2011 @ 6:38 am

4. 

   Do you think there is maybe a reason this flake didn’t have a car of his own? Here you are, trying to do something nice for someone and this is the thanks you get. You left yourself wide open on this one. Did you have him sign any kind of a contract? If the title is in your name, you can repossess it. Hopefully you kept a set of keys?

   Comment by Scott H — April 21, 2011 @ 6:38 am

5. 

   If the registration is still in your name you can pick up the car any time you want. Tell him if he wants the car back he will have to pay off the balance of the note by taking out a loan in his name and paying off your loan, getting you out of the middle. If he can not, do not let him have the car back. Don’t let him make you feel guilty by saying he has put money into the car, tell him it was a use fee. Hope it helps.

   Comment by worldthatwas — April 21, 2011 @ 6:38 am

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