Help with auto lien information!?

Question

My friend sold a car for 1500. The person buying it is making payments every week until its paid off. But on the title, he put $100 as the purchase price so the purchaser wouldn't have to pay that much tax. If the purchaser doesn't pay my friend back, what can my friend do? Only get $100 back? Or the car. He lives in Florida.

Answer 1

Well a couple things are going to go bad or have already. First off, when you buy a car and try to declare the car's value at 100dollars, the first thing that's gonna happen is the dept of revenue will call and request you prove it, or pay tax on the fair market value. Second, it's true that if the guy doesn't pay 1500, he can show that title in court and say "hey, he said 100bucks". Third, if he wants to do this contract the right way, he should be going to the DMV with the buyer, title in hand(he should never have written on it first) and a written bill of sale between the two. The transaction would show the seller as the lienholder/legal owner, and the buyer as the registered owner. A new title would be issued and sent to the seller/lienholder, and he would hold that title until the buyer paid off the loan of 1500dollars. Once the loan was paid, the seller would release interest on the title, sign the bill of sale as paid in full. The seller should also require insurance be carried on the car during the life of the loan, same as a bank, cuz that's what he is, at this point. Fourth, if he signed off the title, and the guy bakes'm outta here, your friend is out of luck, money, a car, and supposedly a friend.