imported_SiR_YO

Just need some info and advice on how I should go abouts this possible trade I have with someone that's interested in my car.

Facts:

His car - paid off completely
My car - Money owed to Honda Finance Canada
Trade is his car + $X for my car

Info I need is:

would either of us still have to pay tax on each other vehicles when we go to the ministry? if so is there any way around it because in a way we're not really purchasing each other's cars.

secondly, I'm assuming the best way would be to pay off my lean first with Honda Canada, and then on the same day we go to the ministry to get a used car package and do the switch? However, that's where the tax issue comes in.

the $X he's gonna give me depends on if his car will pass saftey, and if there are any other problems that the dealership might find (I've requested for his car to be safetied at the dealership). I just want to confirm to, the saftey will last a month? and e-tests last a year?

Need a place in Mississauga that will safety my car... I don't think prices vary that much, but anyone that has good exp with a shop, please let me know.

Lastly, I'd like to get this all done in one day because we both work and what not, what would be the most efficient way to get all this done?

Appreciate all input, thanks

styls255

doesn't matter if u buy or trade when u transfer ur name onto the new ownership u will have to pay the sales tax. Even if u say u didn't pay a cent for the car. unless the wholesale value doesn't come up u only pay the sales tax on what u paid for the vehicle, but since ur probably getting a newer car u will have to pay sales tax no way around it i'm pretty sure. I have traded many vehicles myself and I don't c away around it man.

imported_doggy69247

yea tax is a bitch go 2 the bank and get a line of credit pay off the len on the car then u wil have no problem if the lean on the car is stil standing u cant sell the car u cant change the ownership over until its gone


the only way 2 get lowwer taxes is 2 get an appraisal done buy a friend and state the car is a ****box and is worth 3g or something like that

imported_SiR_YO

ya, when I got my uncles 88' lude I didn't have to pay tax, either cuz the book value of the car was like so low or cuz like you said, didn't show up. Or was it cuz he was my uncle and it was a gift cuz he was a family member?

I don't have any friends that I know of that can do an appraisal for me... problem is, both cars involved in this trade are fairly new, so stating it being a ****box would be a far stretch.

imported_kIeRaN

if its going from one family member to another, u do not have to pay tax. I have heard from a friend of mine that he gets fakes apraisals done where the guy will say the car has no motor making it worth not much at all, then he just pays taxes on his fake appraisal. ends up saving him wuite a bit lol

imported_SiR_YO

what is considered "family" now a days? I could technically say that this guy is my 2nd removed cousin, and get out of paying tax that way?

what if the ministry doesn't believe the fake appraisal? like say my car got fake appraised at like $5000...

imported_kIeRaN

haha, im pretty sure its like mother, sister, dad, uncle, close family. if it were that easy to just say its your 2nd removed cousin, everyone would be doing it. When my mom and i did it, we had to go to the town of newmarket building and get some lady to check our ID and then she had to sign it.

imported_Italia311

Wouldn't they then look at the blue book value of the car and tell the guy who appraised it to get a real job? :P

imported_doggy69247

tel them the car was in an acsedent and the motor is busted


u are going 2 get it all fixed up and back like new again !!!

imported_mugenpowered

Have you searched on the minsitry website? It might be able to help you out because there is a checklist for buyers and sellers of a car. Not sure if it specifically addressses trades though.
http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm

imported_alwaysoverkill

family is immediate, mother, father, son or daughter so that won't work. your on the hook for the taxes of the wholesale value. whats the wholesale value you ask, well, a used vehicle information package will tell you available from the good ol MTO

most effecient way, have the safety and e-test completed for both cars and when you go to the MTO to basically say you got this new car you'll have to show e-test (good for 1 year), safety (good for 1 month) and you should be able to just transfer ownsership and be done with it.

you'll have to have your car paid off i think otherwise it will show a lein against it on the UVIP

best bet, i'd call the MTO and verfiy here is what i need so you can both just go in and get'er done right away

imported_SiR_YO

thanks for all the input guys... just negotiating on a number that will work for both parties right now... there are a ton of places I can go get my car saftied at.. any ones in particular I should watch out for? or any recommendations?

imported_SiR_YO

oh, anyone know where I can get a "nice" appraisal done for my car and the potential buyer's car??

imported_t_dot_SiR

does writing the appraisal required any type of license or certificate indicating i'm qualify to appraise cars?

also, i never knew transferring ownership between family members can get away with tax... coz on my 1st car... i bought it on my own name, then my insurance company say i gotta have my sister's name on the car to buy insurance under her husband's policy (yes my sister is married)... well when we goto the ministry, i told them i'm not selling or anything with the car, i'm just adding my sister's name on it... that lady said they must do a transfer in ownership to add my sister's name... and any transfer means involve with some sort of selling (in this case i may be charing my sister for zero dollars) but the book value says the car is worth $2500... then i had to pay tax on the $2500 value... so was i cheated by MTO? their explanation seems valid and makes tons of sense.... would it be because my sister and I have different last name since she's married? so for those who said transferring ownership to family members is tax-free, please follow up! thanks

imported_Fug

oooh,,, now that you possibly found someone to take ur car...do u still have any stock parts u can sell me from the front end?

lol

imported_SiR_YO

lol, I knew sooner or later you'd find this thread ... however, if we do go through with the deal, he wants all the stock parts, but I could ask him if he's interested in selling them to you afterwards, if the deal goes through

imported_Team Rukus

maybe....

imported_Fug

LMAO...i've been stalking you

hahahahaha

imported_SiR_YO

you got pm

imported_SiR_YO

so obviously you cannot show that the car got saftied until at least a few days after it got appraised?