A man strangled a woman with his bare hands after driving to a countryside lane, a court heard.
The body of Karen Heywood, 35, was found in a wood at Houghton, near Arundel, in January.
Lewes Crown Court heard how Jarno Cable, 25, of Laurel Grove, Bognor, offered to drive Mrs Heywood back to a hostel in Winchester, Hants, after bumping into her in the Family Tree pub in Bognor on January 1.
Friends Gary Putland and Charles Parker were both in the Ford Fiesta being driven by Cable but after passing Arundel, the driver stopped the car at the bottom of a dirt track.
Mr Parker told the court that Cable pulled out a 7in knife with a black handle and threatened them all, saying: "You are in too deep."
The court heard how Mrs Heywood kept asking whether they would be stealing more of her money.
After a struggle between the three men in which punches were exchanged Cable lunged towards Mrs Heywood, in the back seat, grabbed her by the neck with both hands and throttled her for around three minutes.
Mr Parker told the court: "We tried getting him off her but he was in too tight."
Cable answered a call on his mobile and Mr Parker claims he heard him say: "It's all gone wrong. "
The jury heard Cable dragged the body of Mrs Heywood to a nearby barn before driving back to Bognor.
It is believed the body was later moved.
Mrs Heywood had been staying in Bognor to plan her wedding to Bill Janes, who she had met at the Winchester hostel.
Cable, also known as Lenny Cable, denies murdering Mrs Heywood.
Mrs Heywood was recently divorced and had a settlement of £14,000.
The court has heard Cable was part of a group who had robbed Mrs Heywood of cash for drugs.
The case continues.
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