Quote:
Originally Posted by aboulfad
Thanks for this info CanAutM3 ! So one could artificially up the price by up to 5% and negotiate down if the price is reasonable and acceptable for the buyer to account for part or all the GST. I will ask when the time comes and if, what fee the dealer charges. Did your dealer charge any fees for this "accommodation sale" CanAutM3 ?
So the dealer handles the transaction with the buyer, charges him both taxes, and I get the credit towards my new car? So let's do a fictitious example with rough approximation:
Sales price of used car: 100k
Tax credit: 15k
New car from same dealer: 50K
Tax on new car: 7.5k
Accommodation sales fee:1k
So would I get back a cheque from the dealer of (100+15-50-7.5-1)= 56.5k. That as bobblehead said I go and spend it all in Vegas  |
I've never had a dealer charge me any additional fees for the 4 accommodation sales I have done.
I don't think you can "pocket" the tax credit. The way it works is that they deduce the value of the "trade-in" from the purchase of your new car and you pay tax on the remaining value. So in your fictive scenario, you would just have no tax to pay. In theory, you would get a 50k check from the dealer. I never heard of a scenario where the car trade-in value is greater than the purchase so not sure how that would work out...
Note, that if you are trading your 1 year old M4 for a 340i, you will likely be the one writting the check
.