Used Car Tax...
Jul 11th 2012, 9:39 pm
#16
Sawdust making harpy
Joined: Sep 2007
Location: Alberta
Posts: 11,291
Re: Used Car Tax...
You know what people say about a deal that seems to good to be true?
It might be an awesome vehicle but don't be fooled into doing something you have no recourse over if it goes wrong.
Look for one at a dealer and be able to sleep at night (well until you get the insurance quotes that is)
It might be an awesome vehicle but don't be fooled into doing something you have no recourse over if it goes wrong.
Look for one at a dealer and be able to sleep at night (well until you get the insurance quotes that is)
Jul 13th 2012, 7:12 am
#17
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Thread Starter
Joined: Nov 2006
Location: Nusajaya
Posts: 2,327
Re: Used Car Tax...
Thank you all for your help... some really useful pointers there!
I decided to give it a wide berth.... he did come back and say to make an offer, but the whole thing was just too dodgy (although I'm sure people have to sell cars with finance on them all the time). Not paying tax because he was a company, transfer fees for the loan etc. was all too much and he would have got the best end of the deal for sure.
I went to a dealer, did a bit of haggling and am picking the "new motor" up tomorrow! Can't wait!!
I decided to give it a wide berth.... he did come back and say to make an offer, but the whole thing was just too dodgy (although I'm sure people have to sell cars with finance on them all the time). Not paying tax because he was a company, transfer fees for the loan etc. was all too much and he would have got the best end of the deal for sure.
I went to a dealer, did a bit of haggling and am picking the "new motor" up tomorrow! Can't wait!!
Jul 14th 2012, 2:44 am
#18
BE Enthusiast
Joined: May 2011
Posts: 860
Re: Used Car Tax...
If you want (in Warren Buffett's words) Mr. Market's opinion on taking over leases, have a look at leasebusters.com. Do a search for a lease take-over, and check out the market.
Jul 15th 2012, 3:27 pm
#19
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Joined: Sep 2006
Location: Kelowna
Posts: 2,514
Re: Used Car Tax...
If his company paid the tax and reclaimed it, then as a tax registrant, they have to charge the tax when they sell it. However if the company was a regitrant for sales tax, not sure why they would include it in a loan and pay interest on it, when they could get it back.
If you buy a used car from a dealer, you pay GST+PST or HST, if you buy a used car privately, you pay PST or in some provinces a used vehicle levy. There is no way around tax on used vehicles. Tax is charged on the price you pay for the vehicle. If the original tax was included in the financing, you take over the loan and pay the monthly charges, you are paying for that tax from the original purchase. You are not paying paying the other guys tax bill as part of the loan repayment, in addition you would be charged tax by the govt. for the used value.
If you take over a loan on face value, the seller is getting a great deal and getting out of financing they likely cannot afford.
If you buy a used car from a dealer, you pay GST+PST or HST, if you buy a used car privately, you pay PST or in some provinces a used vehicle levy. There is no way around tax on used vehicles. Tax is charged on the price you pay for the vehicle. If the original tax was included in the financing, you take over the loan and pay the monthly charges, you are paying for that tax from the original purchase. You are not paying paying the other guys tax bill as part of the loan repayment, in addition you would be charged tax by the govt. for the used value.
If you take over a loan on face value, the seller is getting a great deal and getting out of financing they likely cannot afford.
Jul 15th 2012, 3:49 pm
#20
Joined: Sep 2008
Posts: 12,830
Re: Used Car Tax...
There is no federal tax (HST) on private car sales, this is why the BC provincial government introduced the used vehicle levy. The end result is the same, you pay 12%, but it is not HST it is 100% PST.
Jul 15th 2012, 5:26 pm
#21
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Joined: Sep 2006
Location: Kelowna
Posts: 2,514
Re: Used Car Tax...
We are looking at secondhand older model campers, these things still sell for $6k even though they may be 25 years old and then the government still wants 12% of what you pay!
Jul 16th 2012, 1:58 am
#22
Moderαtor Emeritus
Joined: Sep 2003
Location: Upstate South Carolina
Posts: 30,768
Re: Used Car Tax...
You will run into the normal issue for newcomers; lack of Cdn credit rating scupering any deal..
Jul 16th 2012, 2:20 am
#23
Slightly Canadian
Joined: Jul 2005
Location: St. John's, Newfoundland
Posts: 10,129
Re: Used Car Tax...
Call it what you like we are being shafted for a full 12% on used vehicles time and time again, it is a huge money grab.
We are looking at secondhand older model campers, these things still sell for $6k even though they may be 25 years old and then the government still wants 12% of what you pay!
We are looking at secondhand older model campers, these things still sell for $6k even though they may be 25 years old and then the government still wants 12% of what you pay!
Jul 16th 2012, 2:33 am
#24
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,874
Jul 16th 2012, 2:59 am
#25
Lost in BE Cyberspace
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Location: South of Calgary
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Jul 16th 2012, 3:14 am
#26
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,874
Re: Used Car Tax...
I dont know 
Sure there are those minor things like education, healthcare, infrastructure etc etc.
I truly wonder how the Yukon, NWT and Nunavut survive without charging a Territorial Sales Tax though if I remember they do take 1% of your earnings at tax time. Sure they dont have the population base but maybe the Feds give them buckets of money if no sales tax other than the GST.
Sure there are those minor things like education, healthcare, infrastructure etc etc.I truly wonder how the Yukon, NWT and Nunavut survive without charging a Territorial Sales Tax though if I remember they do take 1% of your earnings at tax time. Sure they dont have the population base but maybe the Feds give them buckets of money if no sales tax other than the GST.
Jul 16th 2012, 4:36 am
#27
Joined: Sep 2008
Posts: 12,830
Re: Used Car Tax...
Call it what you like we are being shafted for a full 12% on used vehicles time and time again, it is a huge money grab.
We are looking at secondhand older model campers, these things still sell for $6k even though they may be 25 years old and then the government still wants 12% of what you pay!
We are looking at secondhand older model campers, these things still sell for $6k even though they may be 25 years old and then the government still wants 12% of what you pay!
Jul 16th 2012, 6:08 pm
#28
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Joined: Sep 2006
Location: Kelowna
Posts: 2,514
Re: Used Car Tax...
Jul 18th 2012, 3:10 pm
#29
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Thread Starter
Joined: Nov 2006
Location: Nusajaya
Posts: 2,327
Re: Used Car Tax...
I think that multiple taxes on a single "commodity" changing hands is totally amoral, and I honestly don't understand how Canadians accept it. I can't think of any other Country in the world where second hand goods are taxed, time and time again.
Here in Quebec it's even worse... they apply the Federal tax and then tax you on the result, so you pay tax on tax!
Thieving twats. I wouldn't mind quite so much if the roads weren't like farm tracks....
Here in Quebec it's even worse... they apply the Federal tax and then tax you on the result, so you pay tax on tax!
Thieving twats. I wouldn't mind quite so much if the roads weren't like farm tracks....
Jul 18th 2012, 3:16 pm
#30
Joined: Aug 2005
Posts: 14,227
Re: Used Car Tax...
I think that multiple taxes on a single "commodity" changing hands is totally amoral, and I honestly don't understand how Canadians accept it. I can't think of any other Country in the world where second hand goods are taxed, time and time again.
Here in Quebec it's even worse... they apply the Federal tax and then tax you on the result, so you pay tax on tax!
Thieving twats. I wouldn't mind quite so much if the roads weren't like farm tracks....
Here in Quebec it's even worse... they apply the Federal tax and then tax you on the result, so you pay tax on tax!
Thieving twats. I wouldn't mind quite so much if the roads weren't like farm tracks....
