Being Sued - Never have been

What is the name of your state? Michigan

My husband had bought a car for my son, $700. He had test drove it down the dirt road where the mechanic lived--the mechanic was selling for someone else. Based on questioning the mechanic telling us it was in good shape, my husband wrote a check for it. He also signed a paper stating he is buying "as is", again based on the mechanics word.
He then drove it home - 10 miles away, then decided to drive to my fathers aprox 75 miles away. He didn't even make it 1/2 way up there and he had to stop to put transmission fluid in, and again on the way home. He had tried calling the seller several times, who wouldn't answer or return the phone calls.
He returned the car and we put a stop payment on the check.

This happened in Oct 03. In Four months later in Feb we had gotten a letter from a lawyer stating we had to contact him, we contacted an attorney instead. He told us that it would cost the guy more to sue us than what the car was worth. He read the letter and more or less said not to worry about it unless we got court papers--we just did last night.

My son is a witness, he was there when the mechanic said the car was in good shape. The transmisson is bad, and we backed out.
Come to find out the attorney, the mechanic and the seller are all buddies.
We've never been in any legal disputes before, this man is trying to rip us off for something he knew was bad.
Any advice on what to do? I'm worried sick. It doens't sound like much but that is 1/2 of what my husband makes in a month!

Sounds to me like your husband is toast.
Simply, he purchased a vehicle 'as is' then stopped pay on the payment.
Everything else (statements of mechanic as to condition, etc.) is all irrelevant and of no value.

My suggestion, contact the seller and try to negotiate a settlement. It will be a LOT cheaper than getting stuck with the full amount.

BTW, where is the vehicle now??

Other than having the car half a day it was left right where we found it.
My husbands decison was based on the mechanics statement that the car was in good running condition. Wouldn't that have been some sort of misrepresentation?

Doesn't seem right to have to pay for something five months afterwards and never actually obtained.

"My husbands decison was based on the mechanics statement that the car was in good running condition. Wouldn't that have been some sort of misrepresentation?"
*** Two problems with that.
First, how will you PROVE to a court (if needed) that the mechanic even made any statements as to the condition.... and statements from relatives or friends may show bias. The buyer should have insisted that any statements as to condition be in writing.

Second and most important, is the principal of "Caveat Emptor" (Buyer Beware), means that the buyer has a legal OBLIGATION to inspect and review the 'item' before purchase. This includes getting a mechanic to inspect the condition BEFORE agreeing to purchase.

"Doesn't seem right to have to pay for something five months afterwards and never actually obtained."
*** I agree..... however, your 'not obtaining' the property was YOUR decision.

"Good shape" is relative. What's good to one may not be good to another. Your first clue should have come with the price of the vehicle. Do you really think you can buy a car for $700 and not encounter some problems? Your second clue should have been the "as is" clause. That tells it all. You bought the car, faults and all.

I have an old POS van. I could sell it tomorrow and tell the buyer, in all good conscience, that it runs good. And it does, as long as you continue to add oil to it. See, it has a nasty leak, but that doesn't change the fact that it runs good if you keep on top of that.

You really should take Jetx's advice. You are on the losing end of a lawsuit and nothing will change that. It's going to be much cheaper for you in the end if you just call the seller and give him his money.

in addition to what everyone else came up with that i agree with, it was your choice to dump car off where ever and when ever. one thing to keep in mind is your damm lucky you havent been criminally charge for stopping payment on a plain legal transaction check over $300. maybe in michigan its $500, but over those limits are a FELONY.

Sounds to me like this guy does this all the time. The worst he can do is take you to small claims court.
If he tries to take you to small caims court then I would threaten to report
to the AG for selling vehicles without a license to do so. I am sure they would have an easier time getting access to the Secretary of State records than you would.
And the IRS is always interested in unclaimed income, which is probably the case.
The Michigan Legislature has a good sight for Michigan laws. I dont know the specifics, but I think you have a grace period to return large purchases. I would look at the Michigan Consumer Protection Laws.
The Michigan lemon law does not apply to used vehicles.

Good Luck
Afterhrs