Did you all sign "AS IS" agreements? Did you tell him everything that you knew was wrong with it?
I've handled more than a few cases against car dealers who don't disclose known problems. Examples include selling a vehicle without disclosure that it had been wrecked after the dealer bought it for pennies knowing it had been wrecked.
Yes, he could sue you. The success of his case will depend on a lot of details and circumstances. It may be up to a jury to decide. I guess my advice would be to be honest with him, keep talking to him, and show him all the information that you had.
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