GoFaster
Moderator at Large
No.
What it means is that if you trade in the car for a new VW, the "trade in value" is the amount that is used for offsetting the HST that you would otherwise pay (on the full price of the new car). You still get the full buyback credit - but the taxes are only figured out based on the trade-in value.
Let's say you trade in for a $30K new car. If you were to buy that outright with no trade-in, you would be paying tax on $30K (the full price of the new car). With the buyback applied, they pay you the $20k for your old car, you pay the $10k difference plus tax figured on $16k (= $30k new car price - $14k trade in value).
The wear-and-tear on your vehicle (that they are buying back) is irrelevant as long as it really is wear-and-tear (not intentional "stripping" of parts) and the car runs.
What it means is that if you trade in the car for a new VW, the "trade in value" is the amount that is used for offsetting the HST that you would otherwise pay (on the full price of the new car). You still get the full buyback credit - but the taxes are only figured out based on the trade-in value.
Let's say you trade in for a $30K new car. If you were to buy that outright with no trade-in, you would be paying tax on $30K (the full price of the new car). With the buyback applied, they pay you the $20k for your old car, you pay the $10k difference plus tax figured on $16k (= $30k new car price - $14k trade in value).
The wear-and-tear on your vehicle (that they are buying back) is irrelevant as long as it really is wear-and-tear (not intentional "stripping" of parts) and the car runs.