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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
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
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:
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.