You can choose to sell your vehicle to the buyer of your choice through a third-party dealer who is selling you a new vehicle. This type of transaction is called an “accommodation sale.”
Advantages of an accommodation sale
An accommodation sale often allows you to reduce the amount of taxes you need to pay on the new vehicle you are purchasing.
However, the buyer purchasing your former vehicle must pay both the GST and the QST (when a buyer purchases a vehicle directly from an individual, they only need to pay the QST.)
Example of accommodation sale
You are purchasing a new vehicle for $22,000, and you are selling your former vehicle to the buyer of your choice for $8,000. You must therefore pay taxes on the difference between the two amounts, that is to say, $14,000.
Last update : May 3, 2021
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