I sold a car "as is" and the individual makes payments.?

Question

I sold my car as is with the title and everything. I sold it as is by typing up a statement and having the buyer and myself and a witness sign. The statement also mentioned that a down payment was received and that payments must be made each week as part of the agreement. My question is must I give the buyer receipts for each time they make a payment? What can the buyer do if I didn't? And what can I do if the buyer stops making payments for 2 weeks and i have not given any receipts previously?

Answer 1

You made the first correct step in securing the deal by drafting a document that stated payment terms, etc. You and your friend however failed to enforce what the document stood for. Without a proper paper trail restitution will be based upon your claims to a court versus any claims he may make.

If this is happening now, as in he is 2 weeks late, you need to draft another document stating the breach occurred and whether it can be amicably worked out. I.E. he has so many days to make up late payments and catch the loan up to present. This could be your golden flight out, if you can get him to sign this sort of agreement (an admittance of tardy payment basically) and then issue written receipts signed by both of you thereafter you're in the clear if things get muddy in the future.

If you cannot draft this document and get your friend to sign you may need to seek legal recourse. The sooner you do this the better, after 30 days have passed (if necessary). He must then be served legal papers stating he has defaulted on a private loan (get a lawyer), the matter will go to a civil court and a judge will decide the terms of resolution based on both of your testimonies. The fact that you drafted the initial document will aid in this situation but will leave some grey area because you failed to issue receipts.

Hope this helps!

Answer 2

You should give the buyeer a reciept for any monies recieved, it's good business practice and it keeps you out of hot water with the IRS. As for the title you should only give that up when the buyer has finished making all payments. If the buyer stops making payments Reposses the car.

Answer 3

Tell her to kick herself for being stupid. She isn't a bank, even though she thinks she may have protected herself with that contract, a contract only persuades honorable people to do the right thing. Now she is going to have a heck of a time trying to get the car back or the money she's owed. She will have to sue the buyer for breach of contract. The police won't help because this is now a civil matter, because an agreement was made.

Answer 4

Well a receipts is jut that . It says something has transacted between two partys. With out it there is no evendence he paid you and should there come a question of when a payment was made was it, did it ? so every time he pays you you should give him a receipt of what he pays and how much the balance is.

Answer 5

This was a bad idea right from the start. Why do you want to be in the financing business and worry about this person missing payments or not paying at all? You shoul have let them find their own financing and sell them the car in full.

Answer 6

1. YOU SHOULD ALWAYS GIVE A RECEIPT FOR YOUR PROTECTION AS WELL AS FOR THE BUYER.

2. IF YOU DON'T THE BUYER MIGHT GET UPSET BUT JUST GIVE HIM ONE.

3. CALL THE BUYER UP AND REMIND HIM THAT HE IS TWO WEEKS BEHIND AND IF DOESN'T RESPOND YOU CAN REPO THE VEHICLE.

Answer 7

Receipts are a must. It's the only way to prove you received the money. It's also the only way to prove you DIDN'T receive the money.

No proof, no claim.

Answer 8

make reciepts and copies save everything....
and next time...NO TITLE TILL BILL IS PAID!
ok im sure people are gonna attack me on that but from experiance id rather deal with the cops calling me or comeing to my house to ask me about something dealing with my car then be out my car and my money
safest way to sell a car is CASH ONLY but if payments are the only option then NO TITLE TILL ITS PAID UP