What are the Tax Advantages of Trading in Your Vehicle?
Many of us in our day-to-day life are always on the lookout for opportunities to find tax benefits in our many purchases throughout the year. Did you know that trading in and buying a vehicle, at a dealership such as ours at Davey Auto Sales, comes with tax advantages? It’s true, and is one of the biggest and most important benefits of deciding to trade in your vehicle to a dealership instead of trying to sell it privately. How do these tax advantages work and how can you benefit on your next trade-in and vehicle purchase? Follow along with our team at Davey Auto Sales as we help outline these tax benefits when trading in.
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Tax Benefits When Buying & Trading in
Everybody loves to enjoy tax savings, and trading in to a dealership invites a great deal for you. When you trade in to a dealership and look to purchase a new-to-you vehicle, you’ll only have to pay taxes on the lower price of your newer vehicle. This means that you will only have to pay the HST on the difference between the two vehicles. For example, if you’re buying a vehicle that costs $30,000 and you get a $15,000 trade-in value from the dealership for your old vehicle, you will only have to pay tax on that $15,000 difference, not on the full $30,000 for the new-to-you vehicle. This is a great advantage to keep in mind when selling your vehicle to a dealership.
Tax Advantages vs. Selling Privately
These tax benefits are some of the best advantages over selling privately, as you won’t receive any of these tax benefits if you decide to sell your vehicle on your own. Not only does selling your vehicle by yourself invite a ton of headaches as you have to do all of the work yourself, but you won’t receive any tax savings. If you do sell your vehicle privately, then go on to buy a new or used vehicle yourself you’ll have to pay a lot of extra money on the full amount of taxes for that vehicle. This is just another reason why it makes more sense, both financially and for convenience’s sake, to trade into a dealership.
Trade In Your Vehicle at Davey Auto Sales
Ready to experience these tax benefits for yourself with your trade-in and next vehicle? Do so with us here at Davey Auto Sales. Our Oshawa dealership are experts in helping people just like you trade in your vehicle and find a new, better option to drive home in. We’ve been doing this for decades, which means we’ve made the process simple and efficient to get you in and out quickly. Come experience all of the benefits that come with trading into a dealership, along with the cleanest used cars in the Oshawa area, here at Davey Auto Sales.