I financed a car for a friend, he always pays late or pays less than the payment. Can I repossess the car?

Question

When I financed the car for my friend, our agreement was that the loan would be paid off in 2 years; well here I am 4 years later. He pays me and then I make the payments, this way I made sure they were paid on time and my credit wouldn't be affected. Whenever he's short, I end up paying the difference. Whenever he's late, I make sure to send the payment in so it's on time, but them I have to call him for days and weeks to get the payment back. The car is registered to me and I carry the insurance. Well I'm fed up with having to deal with him, the loan and the car. The last straw came when the car racked up $400 in parking tickets, that was 6 month ago. I told him he needed to refinance the car so I can get it out of my name. Last month I gave him an ultimatum, he either pays the balance on the car by the next month's car payment due date or I'm repossessing it.

He refuses to tell me where the car is and has threatened to park the car in another state or take legal action. HELP!

Answer 1

Guess what, if the car is registered in your name, it IS your car.  Why would you agree to such a dumb arrangement?

Answer 2

Go get your car!

Answer 3

If the car is registered to you, and the title is in your name (well yours and the banks). Then the car is yours, if there is no written agreement, then he has no claim to the car at all.

He could try to take you to court, but since everything is in your name, I would get my car back if I were you. Also if he won't tell you where the car is, report it stolen. It is your car.

Sounds like a great friend. Live and learn.

Good luck.

Answer 4

You are CRAZY.

I would go over to your friends house, or close by.  Bring the registration call XYZ towing, and have the car towed to the nearest dealership for that manufacture.  Have them make a new set of keys, and sell the car.

You are under no obligation to fulfill any contract.  It is obvious even if this person had the thought to  take you to small claims court. They would gain nothing.  All you have to do is make sure keep the payment receipts, or be able to prove where the payments have been made if needed.  

He is going to be around the car.  If he does not have it himself his friends know who his girlfriend is - she is probably driving it, or storing the car.  If he really wants to get nasty send him a certified letter asking for the return of the car, also state you have barred him from driving the car, and demand its' immediate return - tell him the car will be reported as stolen.  Wait 3 days after receipt.  Then file a report of a stolen car - he no longer has permission to use the car.  Let the police locate it for you - that is what they get paid for.  If he happens to get to spend the night in Jail - so be it.   If he damages the car be sure to file an insurance claim.  They the insurance company will ask you to file a police report.

Answer 5

yes you can your the one that help him take the car away from him

Answer 6

If you can find it, you can repossess it.  It's your car. You make want to contact a local repo agent, see if they would do it. It would probably cost you $400-$500.

What you did is called a "straw purchase". That's when you obtain a loan for another person.  Usually because they cannot get one themselves.  Now you know why he couldn't get one.  It was a really stupid thing to get involved with...but I'm sure you realize that now.

Maybe you can report it stolen, tell the police it was a loan and he won't return it.  Although they would probably refer you to small claims court.

He cannot take legal action.  On what basis?

Answer 7

Your screwed. I would **** him up