Sale a Car Through a Dealer

You can choose to sell your car to the buyer of your choice through the dealer who is selling you your new car.

This transaction is called a “Courtesy Sale”.

Advantage of a “Courtesy Sale”

Often, a “Courtesy Sale” allows you to reduce the amount of tax you have to pay on your new car.

The buyer of your car, however, will have to pay TPS and TVQ.
(Usually, in a sale between two individuals, the buyer only pays the TVQ.)

Example of a “Courtesy Sale”

You buy a new car for $22,000.

You sell your old car to the buyer of your choice for $8,000.

You will therefore have to pay taxes on the difference between the two amounts, which is $14,000.