From his side of the desk, a side I'm quite familiar with, it seems as though things are now going your way. It also assures that things will bode well for him in the future. It sounds like he cares. My advice would be to go for it. Significant friendships sometimes develop from such actions. Remember, it is just a car, but what it is to you is personal. It's a paint job gone bad to him and something that could leave a scar left unchecked, but he's willing to make it right. Rare today in our finger point happy society. Go for it. If you can do it w/out lawyers, all the better.