Advice on vehicle sold and who is entitled the right to make final decision (Canada).?
In 2017, I purchased a vehicle and my uncle was co-signer. For three years, I have been paying off the balance and my uncle was hands off. In 2020, my uncle decided to payout the remaining balance (60% he invested and 40% I invested).
Since my name was on the bill of sale and I am the registered owner, I decided to sell the vehicle so we can get some money back. I am aware that my uncle has more invested in the vehicle which is why I agreed to pay him monthly payments for his return investment. Unfortunately, my uncle does not agree with that plan and wants to be paid a lump sum with interest. He said if I don't do it his way, he will call the police and sue me for being a criminal.
The cheque is in my name and I have deposited the funds in my account. What should I do? I don't want to go to jail, I just want to do the right thing. I think paying him $1000 a month till he gets all his money back is okay. But am I wrong?
Thanks for the help,
I'm going to college to finish my degree in engineering. Paying my uncle $1000 a month works for my budget as a student.
I only got paid 40% of what I invested for the car.
Engine wear, body damage, and mileage made it only worth 40% of original price.
- Rick BLv 73 months ago
I agree with your uncle. If he paid out 60% of the car's value and you turn around and sell it, you need to pay him back for what he paid. BUT, LEGALLY, he was simply a co-signer. He chose to pay toward the balance. You most likely have no LEGAL obligation to him. But morally, you absolutely owe him the money. If you are getting a lump sum by selling the vehicle, I have no idea why you think it is appropriate to only give him monthly installments.
Not really sure why you would sell a paid-off vehicle. I am betting that you will turn around and get into more debt. Quit living your life on a monthly payment basis.
If you sold a fully-paid car and only got 40% of what you paid, you are a complete moron.