Appraising a car is the act of determining its market value after considering factors such as age, vintage, rarity, and comparable sales. When you privately buy a used vehicle and register as the new legal vehicle owner, you pay the sales tax. The retail sales tax you pay is based on either the purchase price or the vehicle's wholesale price, whichever is greater.
In Ontario, the wholesale value is based on the Canadian Red Book, which has the wholesale and retail values of used vehicles. It is an accepted industry standard used by auto dealers, insurance companies and other provincial governments.
The values are based on the average amounts paid for vehicles of the same year, make and model. They don't take into account the following:
- Optional Equipment
- Vehicle Condition
These values will be printed on the Used Vehicle Information Package. Please remember that these values may change from the date the package was issued to the date of transfer.
The amount a vehicle is sold for and the wholesale value are rarely the same. The Canadian Red Book method of auto appraisal does not consider things that have happened in a vehicle's past. These could include registration history, odometer readings and reported damage. Appraising a vehicle without this information misses key factors that influence value.
Right Way Auto is a licensed automotive dealer. That means we are an authorized vehicle appraiser and can provide you with an appraisal based on the information mentioned above, the mechanical and body condition of the vehicle, as well as the purchase price. Consideration of those factors may significantly lower the taxes incurred.