Trading in
How a trade-in works in Manitoba, including how it lowers the tax on your next vehicle.
If you already own a vehicle, trading it in is often the simplest way to put its value toward your next one. In Manitoba it can also lower the tax you pay. Retail sales tax of 7 per cent and GST of 5 per cent are charged on the price of the vehicle you buy minus the value of your trade-in, so the trade-in reduces the amount both taxes are calculated on.
The articles in this topic explain how an appraisal works, what affects the value of your vehicle, and what to bring on the day: the registration, your loan details if there is a balance, and every key you have for the vehicle. They also cover trading in a vehicle you still owe money on. When the vehicle is worth more than the balance, the difference goes toward your next purchase. When it is worth less, the shortfall can sometimes be added to the new loan, depending on the lender and your situation.
