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I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.
I hope to ease your mind. First you do not have liability for the actions of David. Any loss that Terrance suffers is between David and Terrance. If Terrance tries to sue you you will file a Mtion to Dismiss for Failure to Include a Necessary Party (David).
As to the vehicle send Terrance (by certified mail) a Bill for towing and Storage. On the Bill state that if he does not pay it within 10 days that you will consider the car abandoned. After which you can junk the car.
You can follow these links for more information an Abandoned Vehicles:
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