What to do if I took out a car loan and put my daughter on it to build her credit but now that I have paid it off she wants it?
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What to do if I took out a car loan and put my daughter on it to build her credit but now that I have paid it off she wants it?
My daughter wanted a car so we took a loan. She made 5 payments and then bailed. Now we’ve paid it off and want her to sign off her interest in the vehicle but she won’t. Instead she is demanding that we buy her out and at a highly inflated cost. What can I do? I took the car when she walked out, made the payments on time and paid it off. She paid 6K down; I paid off the remainder (10K plus interest). I want to trade the car in but she is being unreasonable. The amount is more than allowed in small claims court, so what is my option?
Asked on April 17, 2012 under Bankruptcy Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It is unfortunate that your daughter is taking the course of action that she is doing with respect to the car that you are writing about. Your situation is a classic example of "no good deed goes unpunished".
I suggest that you get the car appraised and you you buy out her percentage of ownership in exchange for the registration being turned over to you. If she refuses such, then she buys out your interest based upon the percentage of your ownership based upon the vehicle's current fair market value.
If that does not work and she will not cooperate with you in trading in the vehicle and giving up her ownership interest in the vehicle, your recourse since title is in her name would be to bring a legal action for the amount that you paid down on the vehicle for her with accrued interest. If that is what happens, you should consult with an attorney who practices in the area of contract law.
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