Quote:
Originally Posted by Rustyoid
This sounds silly at first, but This way the dealer is able to process it as a true trade in and OP will save the taxes on the trade in value.
If they simply sold the vehicle to the dealer and OP took the equity in cash while waiting for the vehicle, then use the cash as a downpayment, they would not get the tax benefit.
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No - I get that part. Same thing is true in the U.S. The issue I have is handing your car over to the dealer BEFORE he gets an allocation/car. What if he never does? Then he is beholden to the dealer's trade-in price which, if the same thing is true as it is in the U.S. (typically) is A LOT less than you can get from any of the Internet/mass dealers at this time.
In fact, when I did it, even including the amount I would have saved on sales tax did not make up for that difference. Even if he didn't want to put another mile on it, he would be better off (IMHO) leaving it in his garage until his car came in.