WA Is a Contract of Sale Better Than a Settlement?

Lent a car to a friend. They allowed another person to drive, which crashed and wrote the car off. After the car accident, we all found out that driver did not have a drivers licence.

They have agreed to pay market value, but want to go through a settlement process. My thoughts would be to have a contract of sale, transfer papers and they own it thereafter.

Any thoughts on which is better?

 

Thanks for reply.

Settlement process, unknown yet as the person who borrowed it is yet to present this but has said they want to do a settlement through a lawyer, so will have to wait and see.

Car is owned outright, no monies owing. The person who borrowed the car allowed another driver to drive it. She was not aware the driver who had the crash did not hold a current licence. The driver has offered to pay a sum that we have accepted to market value and owner has agreed.

We initially sent a contract of sale for the car, which I thought would have been suffice, it clearly stated car in wreck condition and the driver would then own a wrecked car to do whatever they wished. We would have the money to look at purchase of a new car.

Thanks again