A friend was made redundant and couldn't find work locally, and wasn't able to look further afield as he didn't have a car. My wife had begun working from home, so we offered him her car for free - it was old, but had no problems. A few weeks later, he told us he'd scrapped the car because it needed work done that he couldn't afford. Yet I've now found out he sold it and I feel he's taken advantage of our generosity. He's still not found work, but should we ask him for the money he made selling the car?
Money Moral Dilemma: Should I ask my friend for money after he sold the car we gave him?

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Wholly depends on what's meant by "offered". Gifted? No strings attached, or Loaned?
Sounds very much like "gifted" assuming ownership/keeper was transferred too.
So, if a gift, it was theirs to do with what they liked, sadly not want YOU wanted them to do with it.
No good deed goes unpunished!!
Like Sea_Shell said - was it an outright gift (for him to keep) or a free loan (while he was jobhunting or possibly working away)?
If this person was a friend, then maybe the OP didn't want to put it in writing, but it should have been clear. Mind you, if the recipient was a friend - why wouldn't they have come back and said "The car's died, I can't afford to repair it" (if that was true)? Or indeed, "I'm getting nowhere with jobhunting - do you want the car back or can I sell it because £500 would be more useful?"
Either the people behind these dilemmas all have dodgy friends or my definition of friend is different to the rest of the world...
And the same applies to this 'MMD'.
We've had lots of so-called dilemmas like these,and the answer is always the same.
(And if anyone reading this has an old unusable car on their driveway they've left to rot, consider selling for scrap; the prices have gone up hugely in the last few years and you should get a few hundred pounds (and save your neighbours constantly looking at an ugly eyesore).
With the comment about it needing work but you claim it had no problems... That's how cars work unfortunately! It can be absolutely fine, then one day it has a problem out of the blue.