Legal Question in Real Estate Law in Texas

I bought a financed car from a person using a bill of sale. On the bill of sale stated that I make 18 payments to pay off the loan. It stated that I made a down payment of $4000. The remaining balance is $4500 and $215.38 monthly payments. Now I have been making payments up till now and I contacted the person I bought the car from and he said the remaining balance is $1700. Now is this right, if I have only 3 more months left of payments?

Through email we communicated and as the down payment I gave him a car and $2500 (which amounts to the $4000 on the bill of sale). I asked him specifically if the $2500 was going towards the loan or if he was going to pocket it. He said it was going towards the loan. Now a year later I find out it never went towards the loan and that he just kept it for himself. He is saying that we agreed it was for him to profit. I have emails from him saying it was going towards the loan. What should I do? Is this something I can dispute about in court? Because I have followed everything on the bill of sale. And now he is telling me that I still owe another $1700, but my calculations, I only owe 645 (for the months of July, Aug, and Sept.) And September should be my last month of payments as stated on the bill of sale (18 months).

It seems like he is trying to get me for my $2500 and for another $1700.

He just also recently told me that the interest rate on the car is 16%. He never mentioned this in the beginning and he is just now telling me. Now the payments I have been making, shouldn't he have included the interest rate into the bill of sale? or added a little extra to the payment amount for the interest rate? Does that mean I am responsible for the interest rate even though I had no idea it was this high and he is now telling me, when I am almost done with the payments? Can I argue that he only stated 18 payments towards the loan and the car is mine? Or do I still have to pay interest even though it's not on the bill of sale?


Asked on 7/12/10, 10:38 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Yes. For under $100 in filing fiees you can take him to small claims court. The judge will decide where you stand once all evidence is presented. Be sure you make the last payments on time.

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Answered on 7/13/10, 6:25 am


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