GEM-CAR FAQ

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Sale of a Car to a Private Individual and Sale Through a Dealer

You can choose to sell your car to the buyer of your choice through the dealer who sells you your new car.

This transaction is called an "accommodation sale" or, incorrectly, an “accommodation sale”.

 

Advantages of an accommodation sale

Often, an accommodation sale allows you to reduce the amount of taxes you have to pay on your new automobile.

The purchaser of your automobile, on the other hand, will have to pay the GST and QST (usually, in a sale between 2 individuals, the purchaser pays only the QST).

 

Example of an accommodation sale

You buy a new car for $22,000.

You sell your old car to the buyer of your choice for $8,000.

You'll have to pay taxes on the difference between the two amounts, i.e. $14,000.

 

Posted  2 months  ago by  Bianca da Silveira De Amorim
#2002 31 views Edited  2 months  ago

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