Automotive

Can a trade-in be cancelled?

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  • Mar 1st, 2015 2:46 pm
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Deal Expert
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Jan 27, 2006
19792 posts
3421 upvotes
Woodbridge

Can a trade-in be cancelled?

My boy decided to buy my car but I already signed the papers back in January and just waiting for delivery which should be this week or so.

He's paying ne $1,000 more than what Nissan gave me to make up for the money I'm saving trading it in. I'm not interested in selling privately but he wants it.

I will call Monday but just wanted to know in advance. Thanks.
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12 replies
Deal Addict
Dec 21, 2012
2058 posts
334 upvotes
Toronto, ON
I'm almost certain you can. Someone should confirm if you save taxes when trading in a vehicle? (Heard this somewhere).

If they give you any issues tell them you're going to call OMVIC :)
Deal Addict
Jul 22, 2014
2261 posts
764 upvotes
Ottawa, ON
You pay tax on price difference. How much are they giving you for your car? Might be not worth it if it's over 7-8k.
Deal Guru
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Sep 8, 2007
10978 posts
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Way Out of GTA
In some cases you might be doing them a favour....this way they don't have all the hassle of reselling yours and get a straight sale.

Best just to call the sales manager and ask if they are able to do a straight deal on the same terms without the trade in. Of course the trade in value will be added back and the taxes will be due on the full amount. You won't know until you call. When you talk to them don't go in confrontational...just approach it that this could be win win on each side. They get a clean sale. Make sure you go in and get updated paperwork immediately. good luck!
Deal Addict
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Dec 26, 2006
1579 posts
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ON
If the dealer pays you less than $7,692.31 for the trade-in (excl. tax), it's advisable to sell the car to your son.
Deal Expert
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Jul 5, 2004
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thegradas wrote: If the dealer pays you less than $7,692.31 for the trade-in (excl. tax), it's advisable to sell the car to your son.
How did you come up with this number? The OP never even said what car he's trading in.

Anyway, the dealer might not go for this because sometimes if they give you a very good deal on the purchase of a new car, they make up some of that lost profit by giving you pennies for your trade-in. So the dealer may insist on a completely new deal with you now paying more for the new vehicle.
Deal Expert
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Feb 26, 2004
26998 posts
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Shaner wrote: How did you come up with this number? The OP never even said what car he's trading in.
It's a 2008 Nissan Altima Coupe 3.5SE with almost 165k.
Deal Addict
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Dec 26, 2006
1579 posts
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1,000/HST
regardless what brand/model
Shaner wrote: How did you come up with this number? The OP never even said what car he's trading in.

Anyway, the dealer might not go for this because sometimes if they give you a very good deal on the purchase of a new car, they make up some of that lost profit by giving you pennies for your trade-in. So the dealer may insist on a completely new deal with you now paying more for the new vehicle.
Jr. Member
May 22, 2012
128 posts
29 upvotes
I've done this in the past.
You can do this but you have to factor in the tax as-well.

For example if its 10k trade-in value (i.e Nissan giving you 10k for it), its 11.5k actually (because of 15% tax).
So you're new car is going to be 11.5k extra.
The reason is that they take the 10k of the purchase price then charge you tax.

Also if you negotiated some wind deflector, floor mats, etc for free.. expect them to try to charge you for it!
Deal Addict
Aug 1, 2008
1038 posts
90 upvotes
GTA
Yes, not a problem to cancel your trade-in, I've done it before as well. But as others have said, make sure you account for the taxes that you'd be saving because of your trade in.
Deal Fanatic
Oct 26, 2008
7022 posts
2907 upvotes
Victoria, BC
Ask the dealer if they will do an "in and out".

If you son is prepared to declare the price he is paying you when he goes to register it, take him along to the dealer. The dealer does all the paperwork and everyone is happy.

Makes the "admin. fee" they charge you work for its money.
Deal Addict
Sep 3, 2005
3627 posts
1223 upvotes
Vaughan
I dont think he's selling the car to his son, you old geezers.

I'm sure when he said he's selling to "his boy". I'm sure he meant his friend.
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Member
Feb 4, 2015
215 posts
106 upvotes
York, ON
Had this happen before with my ex's trade-in, the dealer didn't care.

Unless you're trading in something in great shape with low km and extremely in-demand (which I'm guessing not since you're getting a new vehicle), then the dealership weren't expecting to make much from it anyway.

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