Trade in, private sale OR Accommodation ?
Many think that trading in their cars or private sales are the only ways to get a new vehicle. There’s a 3rd option, and it’s called an accommodation deal. It’s the next best thing to private sales or trading in your car, read on and I’ll explain you Why !
Have you ever heard of accommodation deals at dealerships and wondered what it meant ?
Speaking from experience, this is the best option when it comes to sell your car !
Why ?
- You get closer to your ideal selling price
- You get the tax credit on the next transaction
- Peace of mind, since it takes place at the dealership
Most dealerships charge a fee for accommodations because it means more work for them. The sales reps and business managers need to create another transaction and receive no commission from this. Also, accommodations are quite rare, which means the staff needs to ‘relearn‘ all the components every single time. Very often, errors occur leaving everyone in the mix frustrated. Rest assured, I’ve done quite a few of them, I’ve even done my own !
Who are accommodation deals for ?
For starters, you need to own the vehicle, so if you’re leasing it won’t work. It doesn’t matter if you paid your car in full or have some money left owing, it’ll work just the same. It’s that simple, if you own a car, you can do an accommodation deal !
Why not trade my vehicle in ?
Trade ins are quickest and easiest when it comes to parting with your car, perhaps not the most lucrative. Still, many people expect to receive a retail price when selling it wholesale. You CAN use (Kijiji, Canadian Black Book, Kelly Blue Book) to estimate how much your car is worth, but unless you’re selling it yourself you will not get this price. Additionally, if you want to trade it in, then you have to accept that someone else will buy it to make a profit.
Also, the prices listed online reflect the asking price and not necessarily the selling price. It doesn’t mean these vehicles sell at the asking price.
Let’s come back to the points mentioned above:
Advantage: Accommodation deals
1. Closer to your ideal selling price
Selling your car using an accommodation means you set the sale price. It also means more work because you ‘the client‘ need to find a buyer ! When dealing with a ‘sympathetic‘ sales representative, they will gladly give you insight on the amount you could resell your vehicle privately. Then all you need to do is, clean your car, take between 7-10 pictures, advertise it online and wait for messages to come in.
Heck, I’ve even done this for clients ! 😉
2. Get the tax credit on the next transaction
What does that mean exactly ? This is where I sometimes lose people, so I will attempt to be crystal clear here (otherwise, feel free to get in touch 🙂 )
Suppose you buy a brand new car for $30K, you pay 15% tax on it which represents $4.5K. You drive it for 4 years and in a perfect world the car is accident free and in mint condition. Then, you decide to sell it for $15K.
Selling it privately, the buyer will hand you a certified check for $15K and they will pay the taxes at the license bureau (which means you miss out on this credit)
Selling it through an accommodation, the buyer will hand you/the dealership a certified check for $15K plus taxes. ($15K x 15% taxes = $2,250) This is also known as a tax credit. And just like that, you managed to recuperate some money ! (just like that, you made $2,250 more with an accommodation)
3. Peace of mind
As I’ve mentioned before, this is the best way to resell your car because it’s handled at the dealership. So why not pay a small administration fee of $199 when you’ll be receiving thousands of $$$ as credit !? It’s a no brainer – right !
I’ve even gone the extra mile in the past and done a good portion of the leg work for my client ! Helping them with pictures and posting online. I’ve also been told that I’m too nice 🙂
Thanks in advance !
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Additionally, if you have questions around accommodations or would like me to help you with one – PM me !
