You can choose to sell your old vehicle to the buyer of your choice through the merchant selling you your new vehicle. This transaction is called an accommodation sale. It must be included in the contract.
Advantages of an accommodation sale
An accommodation sale can often allow you to pay less tax on your new vehicle. The buyer of your old vehicle will have to pay the GST and QST. (Normally, the buyer pays only the QST on sales between individuals.)
Example of an accommodation sale
You purchase a new vehicle for $22,000. You sell your old vehicle to a buyer of your choice for $8,000. You will have to pay tax on the difference between the two amounts, in this case $14,000.
Role of the merchants
Merchants conducting transactions in accommodation sales incur no responsibility. They are acting as intermediaries.
If merchants charge fees for acting as intermediaries, they are bound by the same obligations as used vehicle merchants. In particular, they must offer a warranty of fitness to the buyer of your vehicle.
Last update : October 29, 2020
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.