Legal Question in Business Law in Iowa

Automotive Purchase

My wife and I purchased a used car from a friend (no longer) and local dealer. After 5 months we asked him if he would accept the car back and he did. Several months later we got served papers saying that he is suing us for non-payment. Am I wrong in thinking that when he recieved the car and title that any and all transactions regarding the car were over and done with? Not only that but he is suing us for $1000 which I don't understand because 5 months at $130 a month equals $650 with a max of $700 if you tack on the late charge of $10 a month. To me the acceptance of the car on his part would have been no different than him repossessing the car. If repossession had occured he wouldn't be able to come after me for money correct? Please help I am going to court on Nov. 22 to resolve this issue. If you could please give a reference code to any law that may help in this matter.

Thank You and God Bless


Asked on 11/03/05, 8:59 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

Re: Automotive Purchase

Sounds like small claims. Bring your paperwork and be prepared to tell your story. He'll have to prove that you didn't pay. If your argument is that giving the car back was an accord and satisfaction of the debt be prepared to argue the same.

If a car is repossessed it is quite common for the repossessor to sell the car at auction and go after the debtor for the balance owing, that is, the difference between the note and the price received. That is called a deficiency judgment. Because he took the car back doesn't end the transaction.

Read more
Answered on 11/04/05, 10:10 am


Related Questions & Answers

More Business Law questions and answers in Iowa