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.

Update 2:

I only got paid 40% of what I invested for the car.

Update 3:

Engine wear, body damage, and mileage made it only worth 40% of original price.

1 Answer

  • Rick B
    Lv 7
    3 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.  

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