Question on Trading cars

[yoshi86]

I always see FT cars from Classified section, I am just wondering how does it work?

Say me and the OP agreed to trade our cars, my Accord to his Camry with no addition cash. So we both go to Autoplan, and pretend I am buying his car, and he is buying my car? then we both pay tax(HST?) for the car we are getting?

for the tax, if the car is worth $10k, and I say that I only paid $1k for it to lower the tax I am paying. later on if car got stolen, then ICBC will only pay me $1k right?

Sorry for the dumb questions
I am not too smart....

[Jgresch]

no, nothing you said is right lol

You can straight trade and neither of you pay tax. There is a box you check on the form that states you are trading for another good worth 'x'.

If it gets stolen or written off, ICBC will pay what they think its worth/what current ones are worth that are similar, has nothign to do with what you paid.

[supafamous]

ICBC | transfer-tax.pdf

Are you referring to this form where you enter the trade value?

Presumably if I'm doing a straight trade then each person enters the trade value as equal to the sale price of the car. If it's not straight trade then one person ends up paying HST on the difference?

[Jgresch]

yes. If you pay the guy an extra $5000 on top of trade, you pay tax on $5k.

[donjalapeno]

Jgresch is the Revscene Jim Pattison

knows dealerships in and out and in again.

[Jgresch]

This isn't dealership stuff lol I was actually wondering this myself a while ago and had to research too 0_o

http://www.revscene.net/forums/63404...y-pay-tax.html

[yoshi86]

Thanks Jgresch!!!