I purchased a car from a friend - he's making the payments to the finance company, i'm making the payments to him. I was 20 days late on my payment - what are my rights in his repossessing the car?
2007-05-30 19:24:24 · 4 answers · asked by candyappleyes 1 in Cars & Transportation ➔ Buying & Selling
None. The car is still his and he can take it back at any time. Actually, since the title is still in his name, he can take it back even if you are current on your payments. One of the many reasons that you should NEVER buy a car that way!
Even if you have a written contract with him, the wording of the contract that he has with the finance company would render your contract void as a matter of law. The finance contract he signed almost certainly bars assignment of the loan by the borrower. Any contract that he enters into with any 3rd party (you in this case) is in violation of the terms of a contract with a party with a superior interest in the vehicle (the finance company) and is therefore null and void and unenforceable.
2007-05-30 20:30:06 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Depends on the way the contract to purchase was written.
20 days late on a payment to a Friend is going to be a strain on the friendship at best...
A bank would charge late fees and hope you catch up within a couple of months. If you don't THEN they repossess.
Late on one payment IS potentially reason to repossess. In some "Rent to own" (also called contract sales) of houses... one day late on ONE payment means you can be evicted and all your past payments count as rent. (and you lost any down payment you made, which is usually a substantial amount of money.)
If you didn't write up the terms under which he could repossess the car in a sales contract... He potentially could have repossessed the car one day after the first payment was late.
2007-05-30 20:24:36 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Yeah you don't have any rights. The car is still legally your friends. Even if you have a contract with him, the contract he has with the bank will almost certainly supersede it. Why didn't you finance the car on your own so your friend could pay off the loan?
2007-05-31 02:01:53 · answer #3 · answered by Jay P 7 · 0⤊ 0⤋
you don't have any because his name is on the financial papers and you are wrecking his credit by not making the payments on time - what you have paid most likely would be considered rent for using it if he decides to repossess it
2007-05-30 19:34:16 · answer #4 · answered by blondeone9606 2 · 1⤊ 0⤋