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Need some opinions, what would you do?

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Mr. T

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I put a pistol up for sale back in February. My long time friends' dad offered to buy it, but asked if he could pay on it in 2 installments being he is on a fixed income, I agreed. He payed me half up front and said he would give me the other half the next month, when the next month came around some things came up and he didn't have the money, no big deal I could wait. Now it's the middle of Nov. and I have called at the beggining of every month to see if he was still interested, but he still don't have the money.

It wouldn't be a problem, because I understand things can go wrong, BUT! He has purchased a new motorcycle since then, charged his son 50$ a week rent when he had to move in with him while he and his wife where seperated, and goes out every weekend to bars. I now have a guy wanting to buy it full payment up front, so should I offer the friends dad a full refund, partial refund, or no refund. I know how I feel, but since I haven't been trading for long, I wanted some veteran input on the matter.
 
I'd just tell him straight up, you can't wait around on him to pay you the rest. Offer up whatever he paid you to buy the gun back, and handle your business from there.
 
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