Suing a friend because he tries to run away with the car without paying the car loan

[Zigner]

the car is in the name of the DAD.. he is taking what is rightfully his.

But it's not JUST his. In addition to the title, he has contractual arrangements.

If the other guy wants to make that claim before a judge...the judge will ask one easy question..who is paying for it? who is on the loan?

Can you count? Furthermore, those are not the only considerations in this matter.

Judges are not stupid. They too can think

Ok

 

[Ohiogal]

Yes. My dad paid it off and he is the only one on the loan. So we would have a better to win this case and take the car back?

YOU have nothing as you are not a party. Your father is part owner of the car. He has gifted the car to the friend unless he can prove there was a contract to be in existence. However what was that contract? Were the payments supposed to last several years? Or be paid off in a year? There may be a statute of frauds issue if it was not in writing.

 

[CdwJava]

the car is in the name of the DAD.. he is taking what is rightfully his.

If the other guy wants to make that claim before a judge...the judge will ask one easy question..who is paying for it? who is on the loan?

Judges are not stupid. They too can think

Sorry, but the party paying for it doesn't necessarily mean that party alone owns it.

Dad needs to consult an attorney and discuss his options such as suing the Friend for breach of contract ... though that might involve proving that there was a contract in the first place!

If the cost of an attorney might be too high to be practical, then dad might have to pursue this on his own in small claims court. Either way, he allowed himself to get into the middle of a bad situation.

 

[halloweenprince]

YOU have nothing as you are not a party. Your father is part owner of the car. He has gifted the car to the friend unless he can prove there was a contract to be in existence. However what was that contract? Were the payments supposed to last several years? Or be paid off in a year? There may be a statute of frauds issue if it was not in writing.

There was no contracts between him and the friend at all. Well it may be a verbal one if it exists. The car loan is a 5 year loan and the friend paid for the first 3 months and then stopped paying. Now it is paid off by the fund from refinancing.

 

[halloweenprince]

Sorry, but the party paying for it doesn't necessarily mean that party alone owns it.

Dad needs to consult an attorney and discuss his options such as suing the Friend for breach of contract ... though that might involve proving that there was a contract in the first place!

If the cost of an attorney might be too high to be practical, then dad might have to pursue this on his own in small claims court. Either way, he allowed himself to get into the middle of a bad situation.

We are planning to settle down by having a meeting with the friend. In this meeting, we will have him signed a title transfer to solely my dad first and a promissory note that he will pay a certain amount per month to my Dad until the balance is fully paid. Then my Dad will transfer the title back to him. As long as he pays the payments on time, he still can use the car. If in anytime he misses a payment, my Dad will take the car back and he no longer has access to it. Of course, any incidents/accidents happen during these times will be solely his responsibility as written in the note. The friend will have to sign it in front of the public notary.

Is this plan durable? Anything to add?

I am afraid that he will just run away with the car after signing those papers. We guess it would be best to sell it. If he does not agree to sell, we will hire an attorney to sue him or bring it to a small claim court to get it over.

 

[CdwJava]

We are planning to settle down by having a meeting with the friend. In this meeting, we will have him signed a title transfer to solely my dad first and a promissory note that he will pay a certain amount per month to my Dad until the balance is fully paid. Then my Dad will transfer the title back to him. As long as he pays the payments on time, he still can use the car. If in anytime he misses a payment, my Dad will take the car back and he no longer has access to it. Of course, any incidents/accidents happen during these times will be solely his responsibility as written in the note. The friend will have to sign it in front of the public notary.

Is this plan durable? Anything to add?

I am afraid that he will just run away with the car after signing those papers. We guess it would be best to sell it. If he does not agree to sell, we will hire an attorney to sue him or bring it to a small claim court to get it over.

And, what is to keep the friend from simply keeping the car? If his name is on the registration and the title, there's no way that your dad can FORCE him to give up the car absent a court order. Sure, dad can find out where it is, hire a tow truck (or use a key if he has one) and snag it, but the friend can do the same thing. That sort of tit for tat can get tedious.

My recommendation would be for dad to try and convince the friend to transfer the registration and title to dad, and when the friend has fulfilled the contract and paid the agreed upon price for the vehicle, then he will sign the title over to the friend.

So long as the friend's name is on the registration and title, he doesn't have to do anything and he can still retain control of the car.

 

[halloweenprince]

And, what is to keep the friend from simply keeping the car? If his name is on the registration and the title, there's no way that your dad can FORCE him to give up the car absent a court order. Sure, dad can find out where it is, hire a tow truck (or use a key if he has one) and snag it, but the friend can do the same thing. That sort of tit for tat can get tedious.

My recommendation would be for dad to try and convince the friend to transfer the registration and title to dad, and when the friend has fulfilled the contract and paid the agreed upon price for the vehicle, then he will sign the title over to the friend.

So long as the friend's name is on the registration and title, he doesn't have to do anything and he can still retain control of the car.

That is exactly what I meant in my post, "We will have him signed a title transfer to solely my dad and a promissory note that he will pay a certain amount per month to my Dad. Until the balance is fully paid, my Dad will transfer the title back to him."

It seems like you agree with this plan.

 

[CdwJava]

That is exactly what I meant in my post, "We will have him signed a title transfer to solely my dad and a promissory note that he will pay a certain amount per month to my Dad. Until the balance is fully paid, my Dad will transfer the title back to him."

It seems like you agree with this plan.

That is only if the friend agrees with this. If he says, "Bite me," then your dad might have to hope he can prevail at court ... if he can prove that there was a contract to begin with.

 

[Ohiogal]

That is only if the friend agrees with this. If he says, "Bite me," then your dad might have to hope he can prevail at court ... if he can prove that there was a contract to begin with.

And since nothing is in writing and it was a five year loan? Statute of frauds. Dad made a bad decision and gave his friend a very expensive gift. And OP, this is NOT your business.