In Alberta it appears that you save 5% GST when you buy privately, pretty sweet. In Ontario 13% HST is payable on both private sales or through a dealer, there is no real difference to the buyer tax wise. On a private sale red book value applies on late model cars or maybe one can pay for a lower appraisal to gain a little benefit. In my experience buyers don’t have a problem letting me pass my late model private sale cars through a dealership as their sales tax will be similar either way.

 

When I had the dealership flip my trade-in cars to a private third party (which I've also done a number of times), the buyers actually ended up paying a little less in taxes than what they would have paid if they had purchased the cars privately - precisely because the MTO charges tax on whichever value is higher between the average selling price of the vehicle or the bill of sale, while the dealership charges the tax on the trade-in value (and thus selling price to the third party). The dealership is considered to be a trusted / authoritative party and collects the tax on the behalf of the government, while a private bill of sale is not and the tax is collected by the MTO on the higher of the bill of sale or the average selling price - which in this case will likely be higher than what the dealership offered you as the trade-in. The third party buying my old car that the dealership offered me $65K for but which on average sells for 75K also ends up saving $1300 in taxes.

 

I can save tax dollars for rennlisters if value at MTO is high, as I am licensed with Ontario Minister of Finance to submit tax appraisals. Especially on a newer GT car it can be large savings.

 

Both Pfaff Porsche and Pfaff Audi low balled my trade at 10000.00 under the wholesale value. I was really offended and surprised they would hit a customer that hard...
I imagined my wife or someone similar losing 10000.00 because they assumed the dealer would be fair and a safe place to do business.
I had a wholesale dealer friend that would give me what I wanted for the Jeep and he had me tell Pfaff he would take it from them at that price. I did want the tax benefit and convenience of the trade in.
In the end I bought an S4 and they gave me exactly what I wanted for my trade and they wholesaled it the next day.
All dealers are in it for the money and have little regard for the uneducated, know what you are dealing with and the values or get ready to pay..

 

Many dealers will do the accommodation trade and hold the tax savings for a year. So you can sell your trade first then buy your next car. Good way to save some coin if you have time to work with ie. a Porsche that is a weekend car. Only negative is you must buy from that dealer for your next one and hopefully you can get what you want.

 

Yes, in 2014 my dealer was happy to hold onto about $55K that they received on my trade. They held my cash for about 7-8 months while I waited for the next model year and a factory order. In my case the dealer is family owned since 1972 and I felt pretty comfortable with them, but I certainly wouldn’t trust just any dealer under the same circumstances.

 

It may be hard to defend dealers, but in my experience on a recent December transaction, the dealer turned around my GTS and listed it at 8k more than I got in trade.
With a CPO and a few nicks and chips fixed (and maybe front tires) I bet they made only 5k on that deal, it was well priced and has sold already.
But if you examine their overheads I would consider that good value for the new purchaser and me and certainly not gouging by the dealer!

In 13 Porsche purchases I have had only one bad experience (with a used 996) and the dealer eventually made that right.....

 

See this kind of language in ads on Kijiji from time to time usually at a used car dealer... Does this mean don't bother asking for a test drive without paying the $899 fee for an e-test first ? I don't understand....


ads in this example https://www.kijiji.ca/v-cars-trucks/...new/1386987454

 

its a BS way to make more money on the deal vs selling cerified upfront. The vehicle doesnt need to be certified or e tested for a test drive to occur. They dont want you taking it to an indy thus the undriveable part and they likely make up to $500+ (using their buddy the mechanic 2 units down) on the certification process alone now that the admin fee rules are stricter than ever in Ontario. This one is worded differently than most out there, they must have had their hands slapped by OMVIC.

 

Lol Warranty package. 15 year old car they are selling you some basic package that covers NOTHING for an inflated price but washes their hands. Most recent 3rd party warranty companies will only cover 10 years or newer and even that's capped at a certain amount.

 

Dealerships and Used Car Dealers are two very different animals. The differences in the quality of the vehicles they sell, how they go about it making their money and how they deal with their customers are generally VERY far apart. There's a good reason why the term "used car salesman" is more often than not used as a perjorative.

 

Having spent the better part of 15 years in the industry (and recently getting out) I can attest to this. Not only that, the industry if vastly better than it was in the 80s and 90s, which makes me shudder to think of what they were like back then. Just remember that bad dealers can still sell good cars. Do your research on trim levels, options, etc. so you know exactly what the car is worth (including reasonable dealer markup), get a proper PPI, get a carfax, don't take their financing or warranty, and you'll be fine.

 

I had no idea water in Ottawa can get a person this high

 

Very Interesting 22000 in 14 years. About 1500 km a year. Wonder if it’s 1 owner? What bearing did the 06 have? Probably little chance of borescoring tho. Nice car. GLWS

 

What do you mean? That's the home of our Federal Government and all their bright ideas! Gotta be something in the water! 😝