Legal Question in Credit and Debt Law in Georgia

If you are willing to take a chance you will never see the $300, sure you can do it like that. It may or may not turn out well. What if he fails to get insurance, gets in an accident and injures or kills someone? You'll be sued and may not have insurance to cover it. Again, yes you can do it but maybe it would be a better idea if he borrowed money from friends to buy the car rather than leave you on the hook. You might consider lowering the price to get it done.

Do not risk this scheme. You may never see the $300, may have no legal right to repossess, and when he crashes the car, you may get sued and your insurance will likely not cover you. It would be completely insane to take this risk. If you need the money, find a buyer who has $900. A person who can't find $300 more is not likely to be reliable.

Do not do this. The way to do this properly and absolve yourself of any liability is to keep a lien on the title. What you need to do is draft a proper bill of sale and you sign and notarize the title along with the buyer. The buyer has to have proof of insurance but you and the buyer both toodle on down to the DMV, turn in your license plates (if required) and you make sure that the buyer fills out a new title application titling the car in his name and that he lists you on the title as the lender and pays the required fees. The DMV will then give him temporary registration papers and mail the new title to you. If he does not pay you, then you can repossess the car just like any other lender. That way, you will have protected yourself from any liability if he drives off and gets in an accident, totals the car (which will not be hard to do) and fails to put the car in his name. And you will be protecting yourself if he fails to pay.