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Stuff like that is why you carry a gun. That guy might have said a few words and gone on his way, he might have beat you to a pulp and then left, or he might have killed your whole family... you had no way of knowing what his plans were.

I always say to people about CCW that just because you have a gun does not mean that you have to shoot someone with it. In this case, simply telling him that you had a pistol was sufficient to deescalate the situation. Everyone went home with the same number of holes in their bodies, cops saw that the situation resolved itself and left it alone. Everyone wins.

ETA: Another possible course of action would have been to dump it in reverse and get out of there. Seeing that you have no duty to retreat, and no shots were fired, I cannot fault you for making the choice that you did.