REVscene - Vancouver Automotive Forum

Ornithology · 04-14-2009, 08:02 PM

I'm looking to trade my suv straight up for a hatchback. However, I'm unsure of how the process would be like. What precautions should I do before I meet up with the buyer? How do I handle the insurance? I tried searching here, icbc, etc. but to no avail. Any help or tips on the process? I know what to look for when buying a car, but it's the procedure of trading that I'm unfamiliar with. Thanks in advance.

Qmx323 · 04-14-2009, 08:15 PM

hmmm... I'm assuming both owners take their registration papers to the autoplan agents, and transfer insurances and ownership to their each respective cars I guess.

You should call an autoplan agent though.

Precautions? Same as buying used, meet up at a mutually agreed mechanic shop so that both your cars can be inspected, or to different shops if you guys can't agree on one shop.

fliptuner · 04-14-2009, 08:17 PM

1. Bring a friend.
2. If you're sure you know what to look for as far as history, condition, future repairs, just be thorough.
3. When it comes to filling out the transfer forms, there's a section for the amounts/value. You and the other party can negotiate how much you want to claim your vehicles are worth.
(Because it's a trade, I'm not 100% sure if you'll have to pay tax on the trade value - check with the insurance agent)
4. Register the vehicle in your name and transfer the insurance.

orange7 · 04-14-2009, 08:22 PM

O_O
don't you just switch keys?

asian_XL · 04-14-2009, 08:37 PM

^ pretty much, but you want to play safe and do everything at the auto plan place.

Ornithology · 04-14-2009, 08:56 PM

So both the buyer and I head out to any autobroker and do the key swap/insurance papers there?

Rich Sandor · 04-14-2009, 09:19 PM

YES. Both you and the other buyer need to be at autoplan together. There is a way to do it seperately, but it's WAY WAY WAY easier to sit down together at an autoplan office. Preferably go to an autoplan office that has a COMPETANT broker. I have done a lot of insurance and sadly there are a lot of insurance agents that have no fucking clue what they are doing, but then there are some that are downright awesome. All west insurance is really good, and their (female) agents are super hot. The old chinese man at Oakridge mall / Oakridge insurance is also very very sharp and fast.

I recommend that you do an ICBC / Lien check on the car you are buying, as you don't want to have it taken away from you if the prev owner doesnt make his payments.

Good luck.

Ornithology · 04-14-2009, 09:28 PM

Alright, how much will it cost to get the registration/insurance transferred at the Oakridge mall location? Is there any way to do this without paying taxes as it is basically a straight up trade and the guy may be giving me a bit of cash?

Rich Sandor · 04-14-2009, 09:40 PM

You're best off asking the insurance agent at Oakridge, because he knows 100% and I wouldn't want to suggest trying something that might be technically illegal, just to save on taxes.

fliptuner · 04-14-2009, 09:41 PM

Reg. is like $28

sixthgear · 04-15-2009, 07:07 AM

are they both paid off?

syee · 04-15-2009, 07:50 AM

I've never traded a car here, but in the US, when I traded in my car for another at the dealership, only the difference was taxed. I imagine it would be the same here, but the Autoplan agent can probably clarify for you.

For example:
If my car is worth $10000, and I go in and purchase a car for $15000, then I would only get taxed on the $5000 difference rather than the complete $15000.

If it's a straight trade for cars of equal value, I can't imagine you having to pay much tax. (just whatever fees are charged for the paperwork) Like others have said, you still need to do your due diligence (lien check, vehicle history, etc) before taking possession.

Ornithology · 04-17-2009, 09:53 PM

What if we both do it like a two-way gift. I sell mine, he sells his, but both for the value of "gift"? Would that be the same?

syee · 04-17-2009, 09:58 PM

Quote:

Originally Posted by Ornithology

What if we both do it like a two-way gift. I sell mine, he sells his, but both for the value of "gift"? Would that be the same?

That's clearly tax evasion. I honestly wouldn't do it or advise anyone to do it. I think they would probably want you to prove you knew each other and why both of you are gifting something to each other. It's way too obvious.

Check with the Autoplan agent to see if it's just the difference that would incur taxes. If it's an even trade, then you have nothing to worry about. If there's a difference, just pay the taxes on the difference or try to keep the difference as low as possible so you pay the least taxes as possible.

Ornithology · 04-17-2009, 10:01 PM

Thjat's the thing, there is no difference in value...