What to do if I’m selling my ex a vehicle and letting him make payments but he is refusing to get insurance on it?

I’m selling him the car for $4400 and he’s only paid $200.

Asked on March 25, 2015 under Business Law, Arizona


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It would be advisable to rescind the sales agreement / contract, refund the $200 to your ex and repossess the car for the following reasons:

If he has possession of the car and is driving without insurance, and title has not been transferred to him, you are liable if he is at fault in an accident because you are the registered owner of the car.

If the agreement includes dates and amounts of payments, you can claim that he is in breach of the contract because he has not complied with the payment terms.

Another ground for rescission of the contract is that by failing to buy insurance, your ex is violating state law and therefore the agreement is void.

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