When we buy a new car in Canada, we pay taxes on the difference between the new car price and the trade in value.
For example I just bought a new RAV4 for approximately $40,000. If my trade in was worth $20,000, the taxes would be $2,800 at 14%. Without a trade in the taxes would be $5,600 , or $2,800 more.
So if I wanted to sell my used car privately for $22,000, which is $2,000 more than than the trade in, I would actually be losing $800. In addition I would have to keep insurance on the old vehicle until it was sold, and put up with the hassle of people calling to go for test drives. I would also have to do a lot more paperwork with a private sale
Yeah, here in Florida you get a tax break if you trade in your car at the $tealers. Lets say you're buying a $30,000 car and there giving you $10,000 for your trade in. You only pay tax on $20,000 for the new car. That would save you $600. BUT, what they don't tell you is they are giving you $3000 less than what YOU could sell your car for. I did this exact same thing. Sold my Honda CR-V for $2500 more than they were going to give me. I came out $2000 ahead. There's a big difference between selling a $2500 Chevy and a $15,000 Honda. There aren't many dirt bags looking at $15,000 cars. I've sold many cars myself rather than get boned on a trade in. It's never been a problem. Sure some people are jerks, but so what. I can out "jerk" anyone. If I were a single woman I might not want strangers coming over, but as a man I have no problem with it.