Topic: Anyone traded down with a dealer? (more expensive for less expensive car)

[2latecrew]

Seriously mulling the idea (as sad as it is) of getting rid of the GTI and replacing it with something less expensive and possibly roomier.
I love the car and the debt on my LOC isn't huge BUT I got such a good deal on it that I can probably chop my debt in half and still have a very serviceable 2007 newer (manual) car. I used to travel more for work and the mileage cover a lot of costs plus I could justify having the GTI because I spent a lot of time on the road. Now I might just have to give that up and be practical for a while

Anyways wondering if anyone had traded a car with a dealer worth substantially more than the car they get back and what the process was like?  I know when you buy a more expensive car you only pay tax on the difference. If the dealer is the one getting the more expensive car do they pay tax? Its not the most usual situation and I may well just end up selling the GTI and then buying later private or dealer defepending on what i can find

[safristi]

  Did you work for the "NEWS OF THE WORLD"........ ...get an evening job at Mickey Dees and keep the GTI..........

[ovr50]

I have done it, actually more than once.

No tax is paid, and you get a cheque for the difference.

Of course, the values put on both vehicles are subject to negotiation but are based on recognized dealer "value books" (eg Black Book or others).

It's hell when practicality comes into play, isn't it??

[whaddaiknow]

I've done it when I traded my 3-yr old Camry for a Mazda5. I was leasing the 5 and the total lease amount was less than the Camry was worth, so they just wrote me a cheque, and the next day I saw my Camry at Tony Graham's on Merivale

[articsteve]

 Its not the most usual situation and I may well just end up selling the GTI and then buying later private or dealer defepending on what i can find 

Do that, otherwise you're gonna take it hard on both ends.   

[2latecrew]

Its not the most usual situation and I may well just end up selling the GTI and then buying later private or dealer defepending on what i can find 

Do that, otherwise you're gonna take it hard on both ends.   

That is the most likely scenario. I know that a trade is rarely to the advantage of the seller however in NS even in a private sale you pay full 15% HST on any sale so a 15% savings can be quite substantial. The idea is still not set in stone anyways.

Much will depend on what my wife decides she thinks is "practical" for our needs and actually finding such a thing for sale. Even going outside the province to NB for a car the used car market here is pretty small relative to Ontario and going to the US for a car in this situation really isn't an option (nor would it necessarily save any money)

[mmret]

The implicit transaction costs make these things difficult.

IMO there shouldn't be any taxes on used car transactions. Its just a stupid money grab. The damn thing's already been taxed at sale, probably dutied up the wazoo for non-NAFTA parts, and now when reselling you want to tax it again?

Stupid government.

[airbalancer]

The implicit transaction costs make these things difficult.

IMO there shouldn't be any taxes on used car transactions. Its just a stupid money grab. The damn thing's already been taxed at sale, probably dutied up the wazoo for non-NAFTA parts, and now when reselling you want to tax it again?

Stupid government.

Why should cars be any different then other products

[mmret]

If I sell a TV at a garage sale, nobody makes me collect tax on it. So yes, why should it be different?

[airbalancer]

If I sell a TV at a garage sale, nobody makes me collect tax on it. So yes, why should it be different?

You are suppose too, you only pay if you make over 30gs a year
A wholesale buys tires and pays HST, the dealer pays HST on the tires, then the consumer buys the tires and pays HST

[tpl]

Airb  this does not need to be a lecture on invoice method value added taxes.  I think mmret's point is  that there should be no tax on a private sale, that is private person to private person.  It is unlikely that anyone apart from a "trader" would make more than $30K a year selling used cars and quite correctly a trader SHOULD collect and remit HST.

FWIW I agree with mm.  You will note that there is no HST on second hand houses which are USUALLY sales from one private person to another.   Land transfer tax doesn't count as it is not part of the HST system  but there is HST on legal fees, house inspections and so on as they are between a company and a private person ( concumer)

[Cord]

Depends where you live. No tax on private car sales in Alberta.

[2latecrew]

Nova Scotia screws its residents on Taxation. Not only do we have one of the highest sales taxes, but they also have tax on tax on gasoline . Plus tack user fees which amount to a tax on anything they can get their hands on.

[safristi]

"Nova Scotia screws its residents" quote...    well no wonder they have to pay EXTRA fer that.................only person who gets screwed fer FREE in Ontario is  Artic steve by Harponi

[sailor723]

Nova Scotia screws its residents on Taxation. Not only do we have one of the highest sales taxes, but they also have tax on tax on gasoline . Plus tack user fees which amount to a tax on anything they can get their hands on.

Yes but your NDP government ran a huge surplus last year so all is good and the redistribution of wealth is proceeding on schedule