Legal Question in Civil Litigation in New York
Question about car financing
1.5 years ago I bought a car for my girlfriend. She did not qualify for financing so the financing was in my name. She insured the car in her name. She primarily drove it. I made 60% of monthly payments on the car and roughly 50% of insurance payments because she did not have adequate money most of the time because she is a fulltime student. We have recently broken up. She does not want the car because she cannot afford it. The car is with her and she will not release it until I give her back 6 months of car payments she made, as well as insurance payments she made. Am I responsible to return this money to her even though she was the primary user of the vehicle? She is threatening to take me to court to get the money back. What are my options. I have made last 3 payments on it and would like the car to be with me since my name is on the title. Please let me know what I should do in order to solve the situation legally. Thank you.
2 Answers from Attorneys
Re: Question about car financing
She will not succeed in recovering payments she made; as it is the gift of the car is a windfall benefit to her. Your payment of insurance premiums would offset any such argument. I assume from your wording that she registered the car in her name as well? Assuming that is true, but that she no longer wants the car, you have the option of continuing the payments and using the car or selling it. Is it by any chance leased?
If the financing is in your name and you don't continue to make the payments the car will be repossessed and you will ruin your credit.
Let her try to take you to court; consult an attorney when she does. Otherwise, if she is willing to arbitrate or mediate the dispute, that is my suggestion as far as the least expensive means of resolving the dispute.
Re: Question about car financing
You are in good shape if she sues you. Especially since she no longer wants the car. Usually it's the other way around.
The payments she made can be reasonably considered a fee paid for the privilege of using YOUR vehicle.
Even if the car was to be a gift, you have a history of her trying to make the payments on her own - that was the deal.
Check DMV's website to see if you can re-register the car in your name. You'll need your own insurance first, but in this instance you are in the position of a lender and you may have a right to repossess the vehicle depending on the peculiar factual circumstances. Do not take the vehicle though without getting professional legal advice, and first checking with and informing the local police if you find you have the right to do it. If you find you can take possession of the vehicle, you will have to return the license plates to DMV first in order to re-register the car in your name.
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