Trading a car in Ontario

[David Stillie]

Has any of my Canadian friends had any experience trading a car for a car in Ontario?
Just wondering how the sales taxes work and transferring the ownership. Would it be easier to sell the cars to each other for a $1?

Thanks

 

[gkent]

Good luck trying to sell them for a buck. If you dig deep enough you'll find something about paying tax on the greater of the "sale price" or "appraised value". So if they think you're trying to screw them they can ask for an appraisal.

 

[dadsbee]

Barter is still legal in Canada... but not sure of the path through it in Ontario at the MTO so you may wanna talk to a tax lawyer. I can trade an airplane for a boat and when asked where I paid PST on the plane by the tax folks I can simple state I traded a boat even for it and they go away. Not sure how you do that at Service Ontario.

 

[towtruckAl]

i think you need appraisl for both cars and u will pay tax on the dif of the highest and lower value but the old 1 dollar deal is long gone up here .

 

[Daves69]

Curious. Is there any relief from appraisal tax transferring vehicle ownership to an immediate family member?

 

[dadsbee]

Yes you can still "gift" a car to an immediate family member for free. Has to be safetied to plate it though..

 

[gkent]

Its not the "tax" people you have to worry about, its the folks at the license bureau. Unless you're a dealer, you can't change ownerships without paying tax. A dealer can do it because tax will be collected and submitted when they sell the vehicle but "individuals"pay the tax on the vehicle they're taking ownership of. They don't care that you're doing an "even" trade ... the cars are worth 50 grand each ... you're gonna pay $ 6500. each.

 

[440 4 speed]

If you are worried about 650.00 on a 50,000 00 car, I would cancel the deal.

 

[G.V.Charger]

Have done it once, so it is possible. Was not a plan, but, a client of mine was very interested in one of my JD garden tractors. Every time he stopped by, it was all about that tractor. I was not interested in selling the JD, but he kept bugging me. Some time later, he arrived with a used Chrysler Town and Country, that caught my eye. Still was not really interested, so, a couple of weeks later, he shows up again, and out of no where, say's, hey, I will trade the town and Country for the JD? I did not think it was possible, however, showed up at the licencing office with the trade agreement, describing the trade and the value of each vehicle, both being the same value. And changed the ownership of the vehicle into my name. Apparently, if the value is equal, there is no tax on a trade.

 

[gkent]

If you are worried about 650.00 on a 50,000 00 car, I would cancel the deal.

Ya missed a "0" there buddy !!

 

[moose1]

Not about a trade, but more info on Service Ontario's practices. When I bought my '66, I got a "vehicle info package" ($20.) from Service Ontario. It included a "bill of sale" that you fill out when buying the vehicle. I got a receipt from the seller & filled out the bill of sale. When I presented it to Service Ontario to register my car, they informed me that I couldn't use the "official" bill of sale because the car was over 25 years old. I now had to get an appraisal for tax purposes before they would let me register the car. Found an appraiser who quickly went through the evaluation and his value was LESS than my official bill of sale - score! Get to Service Ontario and, guess what? They used my original bill of sale because the value was higher! You gotta love it!

 

[440 4 speed]

Ya missed a "0" there buddy !!

I sure did miss a 0.