Cost of Buying New vs Buying Used | GTAMotorcycle.com

Cost of Buying New vs Buying Used

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michael38

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If I buy a used motorcycle (let's say 2nd hand for $5000 from Kijiji), how much tax would I have to pay on the bike? Are there any other fees when buying a used bike?
If I buy a new motorcycle ($5000 from a dealership), how much tax or fees will I have to pay?
 
you will have to pay HST 13% on both options, only difference is buying new motorcycle you pay extra admin/freight/PDI fee at the dealer.
 
You can also tell the MTO you payed less than you did for the bike when buying used. You get charged tax on what you declare for the sales price.
 
michael38 said:
If I buy a used motorcycle (let's say 2nd hand for $5000 from Kijiji), how much tax would I have to pay on the bike? Are there any other fees when buying a used bike?
If I buy a new motorcycle ($5000 from a dealership), how much tax or fees will I have to pay?
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If you buy private then you can declare what ever you want. Declare you bought it for $100 then you pay tax for $100. If you buy it in the dealer then it's 13% plus what ever admin fee they charge. Now if you are buying it private make sure you and the seller are on the same page when you declare the price.
 
Sabex said:
You can also tell the MTO you payed less than you did for the bike when buying used. You get charged tax on what you declare for the sales price.
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Will MTO use bluebook value for that? Or can I actually declare much less? any disadvantage to that or does everyone do that when they buy used?
 
michael38 said:
Will MTO use bluebook value for that? Or can I actually declare much less? any disadvantage to that or does everyone do that when they buy used?
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No bluebook for motorcycles, its whatever you declare.

As long as you and the seller agree onthe price you'll declare. There is a chance the MTO will send the previous owner a mail asking whatthey sold it for. They can either ignore it (typically they'll send it out a few times) or write down a price.

If they write a price that differs from your declared price they'll just make you pay the extra amount.

Or you can just have them write a lower price on the bill of sales and bring that in.

Most people who buy a bike used do it.
 
michael38 said:
Any idea how much the admin/fright/PDI might be for a bike that's $5000?
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I assume this is where dealerships make money. So they may vary from one dealership to another....any one else chime in?
 
They don't charge freight on used bikes and if a dealer does they're total crooks. Admin/PDI can be from $250+ from what I remember being told by a dealer.
 
Both my used bikes I saved a ton of tax. Saving money on tax / admin fees s the one true advantage to buying Private. But there is no warranty.
 
You can get a used SS for 5000 bucks, only thing you'll get for the same price brand new is a 250.
 
You will have to ask dealer see how much they charge admin/freight and PDI, every manufacturer is difference.
 
Sabex said:
No bluebook for motorcycles, its whatever you declare.

As long as you and the seller agree onthe price you'll declare. There is a chance the MTO will send the previous owner a mail asking whatthey sold it for. They can either ignore it (typically they'll send it out a few times) or write down a price.

If they write a price that differs from your declared price they'll just make you pay the extra amount.

Or you can just have them write a lower price on the bill of sales and bring that in.

Most people who buy a bike used do it.
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Got that letter when I sold my GS to a friend. Not sure what would happen if you ignore it, but we made an agreement on what the selling price would be for the bike alone, then sold all the farkles separate to him. Brought the price of the bike down for him and taxes and I still got what I wanted for the bike.
 
wonderings said:
Got that letter when I sold my GS to a friend. Not sure what would happen if you ignore it, but we made an agreement on what the selling price would be for the bike alone, then sold all the farkles separate to him. Brought the price of the bike down for him and taxes and I still got what I wanted for the bike.
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I've gotten a total of four letters for two separate buys. I have no idea what the previous owners did, but I kindly recycled the paper on behalf of the guberment. The last one was a few years ago.
 
Sabex said:
You can also tell the MTO you payed less than you did for the bike when buying used. You get charged tax on what you declare for the sales price.
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Im guessing a lot of people do this, but lets say the bike has a lien on it and you have to go to small claims court to revert the sale with the person who sold it to you.

Wouldn't you be screwed then?
 
matt220 said:
Im guessing a lot of people do this, but lets say the bike has a lien on it and you have to go to small claims court to revert the sale with the person who sold it to you.

Wouldn't you be screwed then?
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Don't buy without a UVIP.
 
wonderings said:
Got that letter when I sold my GS to a friend. Not sure what would happen if you ignore it, but we made an agreement on what the selling price would be for the bike alone, then sold all the farkles separate to him. Brought the price of the bike down for him and taxes and I still got what I wanted for the bike.
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^^ Probably the best way to do it with a reasonably accessorised bike.
 
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