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Tesla Canada new policy of no convenience sales is a BIG MISTAKE

Tesla Canada new policy of no convenience sales is a BIG MISTAKE

Tesla Canada has a new policy that started in 2019 of not accepting convenience sales anymore.
I do not feel they understand the negative impact that will generate.
Basically, they are asking to pay more, a lot more ($12k in my case) in taxes.

End result: Clients pay more, Tesla sells less cars and Government makes more money!!!

I spoke to people from the remarketing department in Toronto but it went no where.
If Tesla is reading this, don't hesitate to reach out to me.
This is a BIG MISTAKE.

TeslaTap.com | May 13, 2019

For us USA people, can you explain what convenience sales are? How does it work and help save you costs? Is it legal for a company do the sales?

Yodrak. | May 13, 2019

"can you explain what convenience sales are?"

My thought exactly - what is it that you are complaining about?

peter.kouri | May 14, 2019

In Quebec it is known as an accommodation sale. When you trade in a car you pay the sales tax (15%} only on the net amount after deducting the trade in value. An accommodation sale is where I would find a buyer for my car, but would trade it in and Tesla would turn around and sell it to my buyer. Makes a big difference since Tesla offers so much less for trade in.

nicbe | May 15, 2019

Thank you for the clear explanation Peter. That's exactly it!

I would add that Ontario has the same issue.

Also, my understanding is that there are also 7 States in the USA that uses the same process. To be confirmed.

Really hope the right people at Tesla are reading this and address appropriately.

andy.connor.e | May 15, 2019

@nicbe

From the info you posted, and the explanation from @peter.kouri, you said that this policy change puts a $12k difference for you.

If i have this correct, in order to pay $12k more in sales tax, that would incur a $92,307 sale for $12k in taxes at toronto's 13%.

So if i have that correct, im not really sure what kind of vehicle you are trading in for that kind of value. You could only be purchasing the high end S or X otherwise Tesla would be paying you.

nicbe | May 15, 2019

I’m selling my 2016 Model X P100DL (my 5th Tesla) for a 2019 Model X P100DL (my 6th Tesla).

Having said that, it affects every Tesla customers in Quebec and Ontario for thousands of dollars each. It clearly doesn’t incentivize new purchases.

I think Elon and Tesla are looking to find ways to sell more new cars? This goes completely against that objective.

Someone in California needs to be aware of this and cancel that new policy which can’t be explained.

nicbe | May 22, 2019

After this post and the message I sent to the support team, I have not heard back from Tesla. Very disappointing!

David N | May 26, 2019

Here in Ohio we have something similar. New car purchase price less trade-in equals amount to be taxed.
1) has to be purchased from a dealer
2) I’m guessing here but I believe as long as the purchase is from a dealer, even a used car purchase is applicable. Meaning, purchase a used car from the dealer with a trade-in and same tax valuation applies.

reed_lewis | May 28, 2019

From what the OP is posting, Person #1 who is buying a new Tesla sells their current car to Tesla, and then Tesla immediately turns around and sells that older car to person #2 for the same price. Then person #1 takes delivery of the new Tesla.

The effect of this is that the price of the new Tesla is lowered buy the amount that Tesla paid for the old car, so the sales tax is lower on the new car. Person #2 still has to pay sales tax on the used car purchase of course.

Interesting solution.