Car buyback: Can the dealer keep the tax amount?

On Tuesday, the À vosaffaires team answered a question from Audrey, who was wondering about buying back her car.

Here is his question:

“The car dealer bought my car from me last week. He paid off my car loan but kept the tax amount I paid on the purchase. He told me the amount would be usable if I made another purchase from the same dealership in the next 6 months, otherwise I would lose that amount. Do they have Right to do that?

We asked Ian B. Sam Yu Chee, CEO of Quebec Auto Franchises (CCAQ), to answer Audrey’s question.

Here is his response:

“Customers who trade in their car have the benefit of getting a tax break when they get a new car from the dealership, but if a new car is not purchased, at that time – we lose the benefit of the tax break.”

Moreover, Mr. Yue Qi explained that there is no time period within which a person must buy back a car to recover the tax amount.

“We can wait a very long time before receiving our new car. So, there is no time limit.

To watch the full clip, watch the video above.