I bought a car for a friend now I want my money back.

[Mbeamon97]

What is the name of your state?-Texas
I bought my friend a car in April of 2018. We recently had a huge fight and we are no longer friends. I wrote a contract stating that she would pay me back the money I spent on the car. While trying to talk about the contract she got mad and said she didn’t care and that she would pay me my money back. Then she left without signing the contract. I had a witness on the phone who heard her say that and her family was in the room while she said it. Can I take her to small claims court. I have the bank statement to prove I took the money out.

 

[quincy]

How much did you spend on the car?

Was the car purchased for cash (no loan taken out)?

Is the car titled in your friend's name?

The bank statement shows only that you withdrew money.

 

[HRZ]

IF you made a completed gift of a car to a friend in April you are going to have a heck of a time to reinvent the deal as a loan or something that she is under contract to pay back .

( if you gave a friend money there might be state law that creates presumption it was a loan not a gift ...but that's not what you posted and I don't know your state law on points )

 

[Mbeamon97]

How much did you spend on the car?

Was the car purchased for cash (no loan taken out)?

Is the car titled in your friend's name?

The bank statement shows only that you withdrew money.

I spent $3500
No there was no loan taken out.
No the car is in her mothers name because she doesn’t have a drivers license

 

[Just Blue]

I spent $3500
No there was no loan taken out.
No the car is in her mothers name because she doesn’t have a drivers license

So you admit that you were trying to help her break the law when you bought this car. Looks like you very nicely purchased a 3,500 dollar gift for friends mom.

 

[PayrollHRGuy]

Since when is it illegal for an unlicensed person to buy or own a car?

The fact that the OP's friend didn't sign the agreement means she isn't bound by it.

The OP needs to consider this a $3500 life lesson.

 

[quincy]

I am not seeing your gift as a loan but you can try to recover the $3500 by taking your friend to small claims. With nothing in writing, you potentially can show that the purchase of the car was with money intended as a loan.

 

[justalayman]

“I bought my friend a car in April of 2018”


So you didn’t loan her the money or buy the car with the intent she would reimburse you?

That makes it a gift, no matter how pissed you are. You can’t retroactively change the character of a gift.


Payrollguy;

I suspect just blue believes op’s friend is who is actually driving the car.



I’ve also found nothing to support op’s belief one needs to have a driver’s license to own a car in Texas. I don’t believe you need a driver’s license to insure or register a car. Obviously one would not be allowed to legally drive the car but I don’t see why they couldn’t list the chauffeur on the insurance as primary driver.

 

[quincy]

“I bought my friend a car in April of 2018”


So you didn’t loan her the money or buy the car with the intent she would reimburse you?

That makes it a gift, no matter how pissed you are. You can’t retroactively change the character of a gift.


Payrollguy;

I suspect just blue believes op’s friend is who is actually driving the car.



I’ve also found nothing to support op’s belief one needs to have a driver’s license to own a car in Texas. I don’t believe you need a driver’s license to insure or register a car. Obviously one would not be allowed to legally drive the car but I don’t see why they couldn’t list the chauffeur on the insurance as primary driver.

In Texas, property or money given to a family member is presumed to be a gift. The presumption is a loan if given to a non-family member.

If there is nothing in writing evidencing a gift or loan, the law will presume loan and the burden shifts to the defendant who must prove gift.

 

[Just Blue]

“I bought my friend a car in April of 2018”


So you didn’t loan her the money or buy the car with the intent she would reimburse you?

That makes it a gift, no matter how pissed you are. You can’t retroactively change the character of a gift.


Payrollguy;

I suspect just blue believes op’s friend is who is actually driving the car.



I’ve also found nothing to support op’s belief one needs to have a driver’s license to own a car in Texas. I don’t believe you need a driver’s license to insure or register a car. Obviously one would not be allowed to legally drive the car but I don’t see why they couldn’t list the chauffeur on the insurance as primary driver.

Damn right I believe OP knowingly bought the car for the friend to drive. I would bet my last dollar on it. I can do that now as I live in NV.

 

[PayrollHRGuy]

If there is nothing in writing evidencing a gift or loan, the law will presume loan and the burden shifts to the defendant who must prove gift.

And the friend will meet that burden of proof by saying there was a loan agreement the OP created and the friend didn't sign it an the friend will say in court "I didn't sign the agreement because I didn't want a loan I wanted the OP to give it to me and he did. Well actually he didn't give it to me he gave it to my mother."

 

[quincy]

Unfortunately, it will be up to the friend to prove the purchase price of the car was a gift and not a loan. Whether an unsigned contract can be that proof is a question mark. It actually indicates to me that Mbeamon intended the money to be a loan.

We have had several posters recently who have been "gifting" cars and money to friends. Where ARE all of these people hanging out? I have never had such a generous friend.

 

[Just Blue]

Unfortunately, it will be up to the friend to prove the purchase price of the car was a gift and not a loan. Whether an unsigned contract can be that proof is a question mark. It actually shows that the money was intended to be a loan.

We have had several posters recently who have been "gifting" cars and money to friends. Where ARE all of these people hanging out? I have never had such a generous friend.

Years ago I was in a $$ bind...Asked my best friend if she could loan me 1k till payday (about a week) she said sure...but you need to sign an IOU. I said sure...A week later I paid her back AND took her out to Legal Seafood for dinner as a thank you.

MPB: We were BBF's. Never did either of us even consider making this anything but a formal loan.

 

[quincy]

You and your friend appear to be the exception rather than the rule. In other words, you were smart and handled the loan as loans should be handled.

What amazes me is how many of our posters have "friendships" so tenuous that the friendships dissolve soon after the loans are made.

 

[LdiJ]

Unfortunately, it will be up to the friend to prove the purchase price of the car was a gift and not a loan. Whether an unsigned contract can be that proof is a question mark. It actually indicates to me that Mbeamon intended the money to be a loan.

We have had several posters recently who have been "gifting" cars and money to friends. Where ARE all of these people hanging out? I have never had such a generous friend.

I think that the "contract" was written AFTER the falling out, not when the car was purchased.