A tax on luxury cars , the C8 included ?

[JVi]

The plan is to reap in lots of money since an average car will cost > $100k very shortly.
Watch out for your kids.

 

[harshadt]

So the luxury tax kicks in on Sept 1,2022 on almost all private vehicles over $100,000. With the continued price increases with the C8 I think it's now unlikely that many C8s will be less than that. Here's hoping everyone who's able to put in an order can take delivery prior to Sept 1.

 

[Mike B]

I thought it started on January 1st this year?

 

[DenisC8]

I thought it started on January 1st this year?

No it didn’t and sept 1st is also not official

 

[MY21C8]

So you are worried about this? It’s nothing compared to what is going to come with Trudy and Jaggy at the helm. Did someone say capital gains tax on you primary residence? Oh it’s coming!

 

[Mach147]

Whew that was close, glad my $249995 boat is still not a luxury item

 

[LE BARON]

So you are worried about this? It’s nothing compared to what is going to come with Trudy and Jaggy at the helm. Did someone say capital gains tax on you primary residence? Oh it’s coming!

I'm worried if I go out I might get run over.
No limit to what may or may not happen.
So I'll go out and enjoy the summer, especially Kingston in June

 

[MY21C8]

I'm worried if I go out I might get run over.
No limit to what may or may not happen.
So I'll go out and enjoy the summer, especially Kingston in June

Hope to see you in Kingston. I’m looking forward to this one!

 

[kerry4]

Trudy and his boyfriend Jughead want your money.

 

[Cariboocreek]

“You will own nothing and be happy….”

 

[LE BARON]

Trudy and his boyfriend Jughead want your money.

Doesn't matter which party either.

 

[TCinthe6]

While I completely oppose any additional form of tax, I really do wonder what impact the luxury tax will have on the used car market. If the dead-net cost goes up for new vehicles, does that mean that used sellers can demand a higher price to re-coup the cost of the tax? Or will sellers see that as a sunk cost that goes to servicing the National debt?

 

[Marcrazy]

The tax is only on the amount over $100k, so $105k would be taxed on the $5k.

 

[DenisC8]

The tax is only on the amount over $100k, so $105k would be taxed on the $5k.

we also don't know how a trade in will effect tax calculation, and if they will go by MSRP not including option or total out the door price.

 

[Jeffer2013]

there was a approximate 10 page article or a study where in the USA about half a dozen states did the same tax and it decreased the revenues for the state that imposes the new tax

what happens is people change there buying habits to reduce or eliminate the tax

the original taxes on the old purchase are now gone, the new tax is not collected, the dealer makes less money and so on

so,the bottom line was less revenue for each state so all 6 or more states have dropped that luxury tax

the turd and mutely and ndppppppppp are nuts, basic economics at play and they only know part of the grade 2 math curriculum

wish I could find the link to the repost from this year or last in the usa

 

[DenisC8]

there was a approximate 10 page article or a study where in the USA about half a dozen states did the same tax and it decreased the revenues for the state that imposes the new tax

what happens is people change there buying habits to reduce or eliminate the tax

the original taxes on the old purchase are now gone, the new tax is not collected, the dealer makes less money and so on

so,the bottom line was less revenue for each state so all 6 or more states have dropped that luxury tax

the turd and mutely and ndppppppppp are nuts, basic economics at play and they only know part of the grade 2 math curriculum

wish I could find the link to the repost from this year or last in the usa

but in our case the old tax is not eliminated, we just have a new tax on top of the old tax.

 

[Jeffer2013]

but in our case the old tax is not eliminated, we just have a new tax on top of the old tax.

yes I should have made that clear

when you combine the 2 taxes the spending habits change to provide less overall revenue to the govt or powers that be

 

[DenisC8]

yes I should have made that clear

when you combine the 2 taxes the spending habits change to provide less overall revenue to the govt or powers that be

I agree that some will choose to spend less, but on the other hand with chip shortage, there are 3 buyers for every desirable car made. I for one have 3 cars that I want, all are 135K-140K and all have long waitlists.

 

[LE BARON]

Or will sellers see that as a sunk cost that goes to servicing the National debt?

ROFL!
Any reason to get more money out of us by anyone else is considered fair game
No one is going to pay for someone else in a business transaction. It called "Don't leave money on the table"
or in the consumer's pocket.

 

[CamsC8]

If the tax does in fact go into effect, you'll see a ton more trade ins to offset the tax above $100k.