In Ontario, trading in your vehicle can save you hundreds in HST. Here's an honest side-by-side breakdown to help you decide.
| Factor | Trade-In at Dealer | Private Sale |
|---|---|---|
| Ontario HST Savings | ✓ HST only on the net purchase price | ✗ No tax savings |
| Speed of Sale | ✓ Same day decision | ✗ Weeks or months |
| Effort Required | ✓ We handle everything | ✗ Photos, ads, showings, test drives |
| Sale Price | Fair market value | Potentially higher price |
| Personal Safety | ✓ Safe, professional transaction | ✗ Strangers visiting your home |
| Payment Application | ✓ Instantly applies toward purchase | ✗ Separate transactions |
| Paperwork | ✓ We handle all documentation | ✗ UVIP, bill of sale, ownership transfer |
In Ontario, when you trade in your vehicle at a licensed dealer, HST is only charged on the difference between the purchase price and trade-in value — not the full vehicle price.
Know what your car is worth before you decide to trade or sell.