Texas Car Trouble

[Jwlambert]

Greetings all, and if you're reading this thanks for taking the time to do so. So let me explain my situation -

A few years ago I was in a relationship and needed to buy a girlfriend of mine a car. She had no credit so I put the loan in my name and had her co-sign. She registered the car in here name, and primarily drove it and paid the note throughout our relationship. About a year after the purchase we split, and agreed (verbally) that she would pay the note and if she couldn't I would take the car and pick up the notes. Well as you can probably guess by reading this far: she has stopped paying the notes, but she won't hand over the car. My credit isn't the best, and I don't want to take the hit for a repossession, but I'm paying for a car that I'm not even driving just cause the loan is out in my name. I've tried talking her in to handing it over several times when she started running late on the note and she refuses.

Is there anything I can do to legally take the car? Talking to her and or working a deal is out of the question at this point. My options are: pay the note or take a repossession. I'm in Texas, as the title says. Any help is appreciated!

 

[quincy]

... A few years ago I was in a relationship and needed to buy a girlfriend of mine a car.

There is rarely a "need" to buy a girlfriend a car. Relationships do not demand this.

She had no credit so I put the loan in my name and had her co-sign. She registered the car in here name, and primarily drove it and paid the note throughout our relationship. About a year after the purchase we split, and agreed (verbally) that she would pay the note and if she couldn't I would take the car and pick up the notes. Well as you can probably guess by reading this far: she has stopped paying the notes, but she won't hand over the car.

You are right. It was easy to guess what you were going to say. I am a bit puzzled why anyone thinks an arrangement like this is a good idea since the possible outcome IS so easy to guess.

Your ex-girlfriend is the registered owner of the car. Because your ex-girlfriend is a co-signer on the loan, both you and your ex-girlfriend are liable for the payments on the loan. One of you needs to make the payments. If you do not make payments, and the ex-girlfriend does not make payments, the car can be repossessed.

You might want to stress the repossession aspect to your ex-girlfriend so she knows she is facing the very real possibility of losing the car if she fails to make the loan payments as agreed.

Oral agreements are difficult to defend in court but at least you had your ex-girlfriend co-sign the loan.

My credit isn't the best, and I don't want to take the hit for a repossession, but I'm paying for a car that I'm not even driving just cause the loan is out in my name. I've tried talking her in to handing it over several times when she started running late on the note and she refuses.

Is there anything I can do to legally take the car? Talking to her and or working a deal is out of the question at this point. My options are: pay the note or take a repossession. I'm in Texas, as the title says. Any help is appreciated!

I think you have outlined your options pretty well. Pay the note or have the car your ex-girlfriend is driving repossessed.

 

[justalayman]

Greetings all, and if you're reading this thanks for taking the time to do so. So let me explain my situation -

A few years ago I was in a relationship and needed to buy a girlfriend of mine a car. She had no credit so I put the loan in my name and had her co-sign. She registered the car in here name, and primarily drove it and paid the note throughout our relationship. About a year after the purchase we split, and agreed (verbally) that she would pay the note and if she couldn't I would take the car and pick up the notes. Well as you can probably guess by reading this far: she has stopped paying the notes, but she won't hand over the car. My credit isn't the best, and I don't want to take the hit for a repossession, but I'm paying for a car that I'm not even driving just cause the loan is out in my name. I've tried talking her in to handing it over several times when she started running late on the note and she refuses.

Is there anything I can do to legally take the car? Talking to her and or working a deal is out of the question at this point. My options are: pay the note or take a repossession. I'm in Texas, as the title says. Any help is appreciated!

when you say "registered in her name", are you referring to the actual registration (plates) or the title? If not the title, in whose name is the title? Registration (plates) is irrelevant as far as claims of ownership go.





also, when you say she co-signed on the loan, is she a co-debtor (such as where all communications from the lender are sent to YOU and HER or is she a guarantor where you are the borrower and she simply signed as a guarantor of the loan?

and when you said: needed to buy my girlfriend a car, are you suggesting it was intended to be a gift to her?

what actions you have available will rest, partially, on the answers to those questions.

 

[latigo]

The upsides are:

(1) You are not shown as the registered owner of the vehicle. Otherwise you would be exposed to being held vicariously liable in tort for any personal injuries or property damage occasioned by its misuse.

(2) Each of you signed the loan making you jointly and severally responsible for its payment. Plus, you only in accommodation.

The other side is that you have no effective or practical legal remedy until the note is satisfied. If you are interested in knowing what remedies are available in the nature of subrogation and/or contribution from the co-obligor, theoretically at least, then ask.

 

[Jwlambert]

Thanks for all the feedback guys. I figured there was nothing to be done, but it happens. I was aware of this when I agreed to do it, but as I stated before, it was something that had to be done at the time.

Merry Christmas!