Do I have to give their money back?

So, a friend of mine recently wanted to buy my car for $1,200. He wanted to do it in payments because he couldn't afford it all at once. So, he did a quote unquote "down payment" or 10 percent of $1,200 for the first payment and ask for a spare key, just to have. I gave him that and not but a week later (I spent the money he had given me for insurance on the car) he called and said he needed the money back and that I could have the key back. Am I entitled to give the money back even though I don't want to? He said he was going to buy it and now he want's to back out. Thanks!

7 Answers

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  • 6 months ago

    You have lost nothing, you still possess the car. You need to give the money back. You can then sell the car, you are out nothing. Don'r be a jerk.

  • 6 months ago

    You are ENTITLED, but not REQUIRED to refund the money and cancel the contract.

    That said, you are a JERK if you don't. Taking a reasonable amount of time to come up with the refund is reasonable.

  • 6 months ago

    If he just had the key and not the car, give him his money back. The deal was not completed.

  • 6 months ago

    As a friend you would be a major jerk to attempt to keep your friend's money. Legally, because he never took possession of the car (the transaction was never completed), you would also have to return his money.

    • STEVEN F
      Lv 7
      6 months agoReport

      He DID take possession by accepting the KEYS.

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  • GTB
    Lv 7
    6 months ago

    Do you have a written bill of sale? If not, it is a verbal agreement, and as Yogi Berra once said, "verbal agreements aren't worth the paper they are printed on" and both sides end up in a dispute over what they understood and what they understood the other party to say. You can claim that the deposit was not refundable as you took the car off the market and that it was a true down payment, not a security hold for a period of time while he "thought about the purchase further". He can claim otherwise. It gets to be one that is going to end the friendship if it is not already gone but so small that courts won't likely mess with it. I would sit tight but not leave the car where he can walk up to it and drive it away (but if he did that, it is car theft as the title is in your name).

  • Pearl
    Lv 7
    6 months ago

    i dont think you should have to, its your rnoney now

  • Anonymous
    6 months ago

    Yes you need to give him the money back. You gave him permission to borrow your car and you never said anything about a rental fee or mileage fee. The money he gave you was to purchase the car which he did not do.

    Next time tell him to save up the $1200 and when he has it, he can buy the car if you haven't already sold it. What would have happened if he had crashed the car that you still own? It could have been a big mess. He doesn't get the car/keys until he actually completes the purchase.

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