Where to sell
Community service organisations with fleets should aim to build relationships with reputable wholesalers and dealers and when ready to sell or replace a vehicle, invite those dealers to their premises to value the vehicle.
Find a licenced dealer
Manufacturers websites also usually include links to dealers.
Be wary of high trade-in offers that may be countered by an increased price for the car being purchased to cover the difference.
GST exemptions on vehicle trade-ins for charities
If a charity is registered for GST and a trade-in vehicle was used solely or partly by the enterprise, the trade-in may be GST-free under the non-commercial rules if the trade-in price is less than 75% of the amount paid to purchase the vehicle. The Australian Taxation Office provides further details:
Selling used vehicles at auction may be beneficial for organisations with medium to large fleets disposing of several vehicles at once. However, auction houses charge yard and inspection fees and add a margin for profit so selling at auction may be less cost-effective for smaller businesses than selling to a wholesaler.
It is important to choose a reputable auction house. Auction houses specialising in ex-corporate and ex-Government fleet vehicles include:
If charities sell a motor vehicle at auction and the successful bid is less than 75% of the amount paid to purchase the vehicle, the sale will be GST-free. The Australian Taxation office advises sellers to inform the auctioneer prior to the auction that the sale may be GST-free under the non-commercial rules. More information is available from the Australian Taxation Office:
Community service organisations may consider selling vehicles privately. When selling privately, a roadworthiness certificate needs to be obtained.
Supported by the Community Sector Investment Fund (external link - opens in a new window).