Taxes on cars Buying a used car (Private & Dealer Buying a new car Financing
In Ontario, buyers pay tax when they purchase a car. We used to only pay PST on a used car and PST and GST on a new car, but now we pay HST whether a car is used or new.
When people purchase a car by borrowing money we call it purchasing by financing. If Howard borrows $33,000 to buy his BMW. What would the total cost of his car be if he planned to pay off his car in 4 years, at 4% interest? How much would he pay in interest?
We can purchase a new or used car through a dealer, which a company that has a license to sell cars. Alternatively we can buy cars through individuals, which is known as a private sale.
The decrease in value of something over time is called depreciation. What are three things that decrease & increase the value of a car? If something increases in value over time, it________________________.
Complete the table on page 187. What is the value of the car after 5 years if it depreciates 20% per year?
Why would someone purchase a new car over a used car, considering there is such a large price difference?
SUV is $58,000. How much would it cost for this vehicle with taxes? How much will this car be worth after 5 years. Complete the table on page 188 to find out.
If a car retains 75% each year. How much is the car depreciating. What factors would determine how fast a car depreciates? Is depreciation ever a good thing?