Legal Question in Civil Litigation in California

Repo

I helped a family member with bad credit purchase a brand new car. My name is first on the loan papers and also the DMV records. The oral agreement at the time the car was purchased were the following, car is to be refinanced in one year removing my name from title, make payments on time, and have own insurance. The year is almost over payments have been made and insurance is current, however nothing has been done to refinance this car. A certified letter was sent as a reminder about refinancing also contact number was given if there were any problems and/or question (recieved signed reciept) no reply as to refinancing.. If they do not refinance as agreed upon can I take the car back? And would this person have a legal case against me?


Asked on 3/12/03, 6:08 pm

2 Answers from Attorneys
Anthony Luti The Luti Law Firm

Re: Repo

Thanks for posting.

If your name is on the loan documents, the car is your in the eyes of the law (and the eyes of the bank). Accordingly, you should be able to take your car back. I imagine that the family member may try to sue you for breach of oral contract or promissory estoppel, but, based on the limited facts that you have given, the individual probably won't have much of a case.

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Answered on 3/12/03, 6:23 pm
Alvin Tenner Law Office of Alvin G. Tenner

Re: Repo

You are entitled to the car. You will have to make the payments if you keep it. If you sell, the loan has to be paid first. You will be liable for any difference between sale price and loan.

However, the relative may have trouble refinancing as his/her credit may still be bad. Since the payments and insurance are being paid on time, why start a family problem by insisting on the refinancing.

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Answered on 3/13/03, 11:33 am


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