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?

UPDATED: Mar 25, 2015

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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 7 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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