Buying a used car...

Kool

Kool

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I have not bought a car/truck in awhile and some things have changed. I bought my daughter a used 04 Honda civic for $3500 and paid cash but got a bill made out for $2500 figuring I could slide this by the mto.
Well hell no....where the heck have I been? Under freakin rock I guess. You have to pay the wholesale price listed on the pkg. No matter what you paid for it OR more if you paid more and admit it.
WTF? Sure you can get a appraisal if you feel you can somehow get a better price...but you gotta pay $50-$60 to find out you might save nuthin.
How does this all work with used car dealers sure they have to pay hst but what if they are sellin say a BMW for $15 grand and the wholesale on that car is $20g's...what does the customer pay the tax on?
What if I was to give someone ferrari as a gift ...they might not be able accept it because of the huge amount of tax you would have to pay on it.
I realize the govt is extorting tax money from the middle class and the poor with this tax on something that has been taxed as many times its been resold...the pendulum has fully swung the other way when you pay more tax than what the item was sold for. Why does this not apply to say a store selling a fridge that might be worth $1000 but is sold for $500 on sale ....why aren't we charged the tax on a $1000 dollars? Why are vehicles the only victim and how the f_ck did this get passed into law without all of us rioting in the freakin streets? Who do they think they are? This is crazy...just like the drive clean tax on us poor suckers who can't afford a new car. This cannot be legal or acceptable. Thanks for the rant. Comments?
 
A couple of years ago, I sold a car to a co-worker for a large DD to help them out. I made the receipt out for 1.52. Blue book value was $8200. He had to pay taxes on $1.
 
raginduck said:
A couple of years ago, I sold a car to a co-worker for a large DD to help them out. I made the receipt out for 1.52. Blue book value was $8200. He had to pay taxes on $1.
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IIRC, if the sale price is less than $1000 the buyer pays tax on the reported sale price.

If the sale price is more than $1000 the buyer pays tax on either the reported sale price or wholesale.. whichever is higher.
 
caboose483 said:
IIRC, if the sale price is less than $1000 the buyer pays tax on the reported sale price.

If the sale price is more than $1000 the buyer pays tax on either the reported sale price or wholesale.. whichever is higher.
Click to expand...

Really? That's good to know then but whats the logic behind this? If its sold for < $1k, they assume its a gift or something?
 
Kool said:
I have not bought a car/truck in awhile and some things have changed. I bought my daughter a used 04 Honda civic for $3500 and paid cash but got a bill made out for $2500 figuring I could slide this by the mto.
Well hell no....where the heck have I been? Under freakin rock I guess. You have to pay the wholesale price listed on the pkg. No matter what you paid for it OR more if you paid more and admit it.
WTF? Sure you can get a appraisal if you feel you can somehow get a better price...but you gotta pay $50-$60 to find out you might save nuthin.
How does this all work with used car dealers sure they have to pay hst but what if they are sellin say a BMW for $15 grand and the wholesale on that car is $20g's...what does the customer pay the tax on?
What if I was to give someone ferrari as a gift ...they might not be able accept it because of the huge amount of tax you would have to pay on it.
I realize the govt is extorting tax money from the middle class and the poor with this tax on something that has been taxed as many times its been resold...the pendulum has fully swung the other way when you pay more tax than what the item was sold for. Why does this not apply to say a store selling a fridge that might be worth $1000 but is sold for $500 on sale ....why aren't we charged the tax on a $1000 dollars? Why are vehicles the only victim and how the f_ck did this get passed into law without all of us rioting in the freakin streets? Who do they think they are? This is crazy...just like the drive clean tax on us poor suckers who can't afford a new car. This cannot be legal or acceptable. Thanks for the rant. Comments?
Click to expand...

I'll take the ferrari - thank you very much.
 
Just out curiosity, did you buy that car from a private seller or a dealer?

If you bought the car from a dealer then you pay the dealer the taxes, not the MTO.
The only time you pay the taxes at the MTO is if you bought the car privately and you pay taxes according to the wholesale price stated in the UVIP.

Let's say the wholesale price of your 04 civic is 4000$, then you will pay 13% HST on that $4K.
If you get an appraisal, then you will pay HST on whatever amount stated on the appraisal.

P.S. If you bought the car from a dealer and you had to pay taxes at the MTO, that's not a good sign...
I hope you've done your research on the vehicle you purchased before handing over any cash.
$3,500 for an 04 Civic is a hell of a deal, I just hope it's not one of those "too good to be true" where you get screwed kind of deal.
 
Just to add, its not ALWAYS the case that you pay the blue book value.

For instance when i bought my 2002 Civic SIR i was afraid of paying BB value because i paid a lot less than that. Was gonna do the appraisal but the girl at the MTO office helped me out. She said to pull out the used vehicle package and if the UVP doesnt specify a price range its too old or whatever to be properly evaluated. At that point you pay the declared value. So i ended up paying the tax on my reported value not what the BB value would be.


2live&ride said:
Just out curiosity, did you buy that car from a private seller or a dealer?

If you bought the car from a dealer then you pay the dealer the taxes, not the MTO.
The only time you pay the taxes at the MTO is if you bought the car privately and you pay taxes according to the wholesale price stated in the UVIP.

Let's say the wholesale price of your 04 civic is 4000$, then you will pay 13% HST on that $4K.
If you get an appraisal, then you will pay HST on whatever amount stated on the appraisal.

P.S. If you bought the car from a dealer and you had to pay taxes at the MTO, that's not a good sign...
I hope you've done your research on the vehicle you purchased before handing over any cash.
$3,500 for an 04 Civic is a hell of a deal, I just hope it's not one of those "too good to be true" where you get screwed kind of deal.
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A gift between family cost nothing ... you just need an affadavit (sp?) ... i've done this many times...

is your daughter single ? i want that ferrari and don't want to pay taxes, you can have your daughter back single after I get the car :P Thanx !!
 
OP... If you're ever in Scarborough and you need an appraisal done, let me know.
 
This is a private sale so I paid taxes on $4100 not just Ont. tax like before but HST 13% so I paid $533.00 in tax
One question was does a used car dealer get you to pay the PRICE of the car and taxes on that price or do you pay the WHOLESALE price quote and then taxes on that? They say whatever is greater.

So you have a car you want to buy from a dealer and it costs 10,000 but the wholesale price is 12,000 I guess you would pay tax on the 12 not the 10 as I see it...wtf?
 
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Dealers will never sell below wholesale... They buy wholesale and sell retail.
Dealers don't go by the UVIP either, they collect taxes on whatever they sell you the car for.
 
Red_Liner740 said:
Just to add, its not ALWAYS the case that you pay the blue book value.

For instance when i bought my 2002 Civic SIR i was afraid of paying BB value because i paid a lot less than that. Was gonna do the appraisal but the girl at the MTO office helped me out. She said to pull out the used vehicle package and if the UVP doesnt specify a price range its too old or whatever to be properly evaluated. At that point you pay the declared value. So i ended up paying the tax on my reported value not what the BB value would be.
Click to expand...

Interesting, that makes a lot of sense and is good to know.

raginduck said:
A couple of years ago, I sold a car to a co-worker for a large DD to help them out. I made the receipt out for 1.52. Blue book value was $8200. He had to pay taxes on $1.
Click to expand...

This one has me a bit confused. I guess amount paid does factor in at some threshold?
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