With the ease of selling anything online through marketplaces such as Kijiji and Facebook, it is natural that many consumers look to such platforms to sell their vehicles. There is a simple equation that many people do in their head when determining if this path is worthwhile. If the buyout price of the vehicle is lower than the amount that they can sell the car for, then they win!
The value becomes less attractive when you have to factor in the taxes that you have to pay to buyout the vehicle, in addition to the pain of selling your car privately. Many people forget that if you buyout your vehicle, you will need to pay taxes on the buyout amount. In the case of Ontario, your vehicle’s buyout cost is artificially inflated by 13% due to the HST that you have to pay.
Due to the pain of selling privately and the significant amount of taxes that needs to be paid, many people shy away from this method. This leads us to our last and most recommended way of making money from your lease.