Part 1 - Trade-in tax credits

‍

You're selling your car, but should you sell privately or to a dealership?

So you filled out our online vehicle price calculator tool and now are either considering selling, or are determining whether to sell privately or to a dealer. We gave you an estimated value of your vehicle, but you may have seen higher numbers when trying to sell privately, is this correct? You may think that by selling your car privately you will get a lot more money than by selling it to a dealership, the higher number looks more attractive of course. However that may not be true, it is possible that they are essentially the same thing. This is because of trade-in tax credits.

‍

If you are selling your car privately to buy a new one you will have to pay taxes on the full price of your new vehicle. Whereas, if you trade-in your current vehicle to AutoAgents, you only pay taxes on the difference. This is because when trading in to a dealership you get paid taxes on top of your trade-in price. Meaning you will receive a tax credit equivalent to your taxable rate in your province towards your new car, so at the end of the day you only have to worry about paying taxes on the difference rather than the full amount. This is a huge difference!

‍

Selling privately can be frustrating and take a lot of time. Plus, you’ll have to pay tax on the full purchase price of the new vehicle if you don’t use your current vehicle as a trade-in. Losing these tax credits will likely negate the benefits of a higher sales price when selling privately. At AutoAgents, we list your vehicle on multiple auction sites to ensure it receives the highest value, then position the best offer for your consideration.

‍