Canadian Z06 pricing released

[DenisC8]

I wonder if I understand this new LT. If I buy a car for $99,999.00, I pay no LT. If I buy a car for $100k, I have to pay 10 grand in LT. If I buy a car for $101,000.00, I have to pay $200.00 in LT since the LT is calculated on the lesser of the threshold value (100k). Do I have this right?

no, wrong.

The tax would be calculated as the lesser of (1) 20 percent of the value above the applicable price ($100,000) or value threshold, or (2) 10 percent of the full price or value of the vehicle.

That means for cars from $100,000 to $199,999.99 you will pay 20% for every dollar after $100,000 and for cars from $200,000 or more will pay 10% for every dollar of the cost of the vehicle.

 

[Murray20c8]

Denis is correct…it’s been verified by numerous accountants on just about every car forum out there. A $150,000 car gets 20% luxury tax on the $50,000 above $100,000. That’s $10,000. Then the $10,000 is added to the $150,000 for a total of $160,000. 13% HST is calculated on the $160,000 for a total of $180,800.

Forget the Z06 and buy a $249,000.00 boat instead!

 

[Midengine]

Forget the Z06 and buy a $249,000.00 boat instead!

Does this LT also apply to used vehicles?

 

[Murray20c8]

Does this LT also apply to used vehicles?

No idea. I already have my car and I'm done with boats.

 

[Midengine]

No idea. I already have my car and I'm done with boats.

No, I wasn't speaking of boats perse but replied to the thread in general. Doesn't seem to make sense for private sale but wondering if you purchased a car over $100k used from a dealer if the LT tax still applied. Perhaps someone in the know will chime in. My scenario has me at a low number for the z06 but all things considered and in principle, I'm re-thinking the purchase based upon such cash grabs.

 

[Vette411]

I believe it applies to used vehicle and imported vehicles as well.
It also applies to leased vehicles.

FYI in British Columbia the Province already enacted a luxury tax on vehicles in the provincial sales tax
15 % on vehicles between 125k and 150k
20% on vehicles over 150k

So if you buy a 150K Z06 in BC you pay 20% PST 5% GST 20% LUX TAX on $50,000 So approximately 35% Or 52,500 in tax

So a 150k Z06 in BC will rollout the door at over 200k if you can get it as MSRP

 

[tyho]

In Ontario the HST will also be calculated on the LT, a tax on a tax.
Add all the various taxes and fees and we're looking at 20% on top of the purchase price for cars under $100,00. Over the $100,000 jeez, this is becoming ridiculous.

 

[Vette411]

Have to wait for the e-ray to get some tax incentive

 

[rhc7gc6]

Have a look at the following:
Consultation on the Select Luxury Goods Tax - Canada.ca

…

 

[Zedder]

The luxury tax applies to new vehicles 2018 and newer and never previously registered...

Broadly speaking, the Luxury Tax would apply on the delivery in Canada, or the importation into Canada, of a specified vehicle if the following conditions were satisfied:

• the specified vehicle has a total price upon delivery in Canada, or a total value upon importation into Canada, exceeding $100,000;
• the specified vehicle was not put into service in Canada (i.e., it was never previously registered with a motor vehicle authority in Canada), other than in connection with the delivery or importation; and
• the delivery is to, or the importation is by, a non-registered person.

If a delivery in Canada, or an importation into Canada, of a specified vehicle meets the above-noted conditions, it would be considered a taxable delivery or a taxable importation for the purposes of the Luxury Tax regime. For the coming-into-force rules related to such taxable deliveries and taxable importations, see the discussion below under Coming Into Force.

 

[Midengine]

The luxury tax applies to new vehicles 2018 and newer and never previously registered...

Broadly speaking, the Luxury Tax would apply on the delivery in Canada, or the importation into Canada, of a specified vehicle if the following conditions were satisfied:

• the specified vehicle has a total price upon delivery in Canada, or a total value upon importation into Canada, exceeding $100,000;
• the specified vehicle was not put into service in Canada (i.e., it was never previously registered with a motor vehicle authority in Canada), other than in connection with the delivery or importation; and
• the delivery is to, or the importation is by, a non-registered person.

If a delivery in Canada, or an importation into Canada, of a specified vehicle meets the above-noted conditions, it would be considered a taxable delivery or a taxable importation for the purposes of the Luxury Tax regime. For the coming-into-force rules related to such taxable deliveries and taxable importations, see the discussion below under Coming Into Force.

Thank you for this. By this rationale used cars that exceed the $100k mark that have been previously registered should be exempted from this garbage tax. This likely will shift lots of folks towards luxury alternative vehicles by that principle alone.

 

[Vette411]

Sorry to take this topic off track as it has now become a tax forum. In any event it is an awesome car and lots of people will be lined up to buy it regardless of price ! But everyone do your homework on the tax so you don't get surprised !

 

[Murray20c8]

No, I wasn't speaking of boats perse but replied to the thread in general. Doesn't seem to make sense for private sale but wondering if you purchased a car over $100k used from a dealer if the LT tax still applied. Perhaps someone in the know will chime in. My scenario has me at a low number for the z06 but all things considered and in principle, I'm re-thinking the purchase based upon such cash grabs.

I knew what you were asking. Never take me seriously unless I am being serious! And you'll never know which! Seriously!

 

[MY21C8]

I knew what you were asking. Never take me seriously unless I am being serious! And you'll never know which! Seriously!

Are you ever serious?

 

[Murray20c8]

Are you ever serious?

Man! You are asking for trouble!
As a moderator I consider it my job to keep things moderate.

 

[MY21C8]

Man! You are asking for trouble!
As a moderator I consider it my job to keep things moderate.

Let’s get this thread back on track. Can you SERIOUSLY believe the price GM had placed on the Z06? It’s not even MODERATELY close to what everyone was speculating! I’m still going to give GM my money, if my wife will let me live off hers

 

[Vette411]

For 98 % of the people in this forum a C8 stingray is more than enough car. Its actually a really great car. The price of a Z06 just
confirms the bargain that the Stingray was. Ok everyone loves the sound of a flat plane crank revving ! But that good old LT2 sounds pretty good when it pops off gears with that duel clutch and the exhaust valves wide open! Not to mention the $50k in your pocket

 

[DenisC8]

For 98 % of the people in this forum a C8 stingray is more than enough car. Its actually a really great car. The price of a Z06 just
confirms the bargain that the Stingray was. Ok everyone loves the sound of a flat plane crank revving ! But that good old LT2 sounds pretty good when it pops off gears with that duel clutch and the exhaust valves wide open! Not to mention the $50k in your pocket

I agree 100%

 

[DAL]

According to Driving.ca
Pricing opens at $128,198 for the base-level 1LZ coupe; $138,198 for the 2LZ coupe; and $144,198 for the 3LZ coupe. Convertible versions of all three trims are also available for an additional $9,000 each, and all prices include the $2,298 destination freight charge.

The 2023 Corvette Z06 starts well above six figures in Canada

Thinking of snapping up the new top trim of the iconic American sports car? You'll need to pony up at least $128,198

driving.ca

WOW!!! For a loaded HTC, including taxes, which a 2020 C8 equivalent was $125K CAD inc taxes), you pay over $190 CAD inc taxes and the ever-beckoning 911 GT3 not a lot more $215K CAD inc taxes. The approximate $70K+ spread between the C8 and the Z beast is questionable when one considers the rate of diminishing return. The difference between the Z & the 911 GT3 R (approximately $215K inc taxes) is an easier$25K pill to swallow giving an owner more value (even upon sale/trade-in). For me, a dyed in the wool Corvette owner/fan I would spring for the Porshe for just $25K, however, with the mystique that GM has shrouded the market entrance of the Z, it'll sell. Happy Motoring & New Year!

 

[DAL]

Last week I did the unthinkable (for a C8 fan) and test drove a "slightly" used Porsche 911 Turbo S (less than 11,000 km) with almost all the options, after learning that GM had choked off the C8 allocations coming to Canada. I thought it out of my price range compared to the expected Z06 cost...but now with the release of the Z06 pricing, I realize it's in that same range plus it's a tested design that comes with a 2 year manufacturer warranty.

Now we're told that compared to Q1 2022, the C8 allocations coming to Canada were further reduced by 49% in Q2 2022 whereas in the States, their Q2 allocations increased by almost 8% (credit to GMAuthority):

https://gmauthority.com/blog/2022/07/chevrolet-corvette-sales-numbers-figures-results-second-quarter-2022-q2/

To put this into perspective, realize that the 2022 Canadian allocations dropped by almost 50%, compared to 2021. So this drop keeps happening and I expect that to continue, as GM focuses on new countries/markets and keeps taking Canadian allocations to feed them.

How long does it take for repeated 50% Canadian allocation decreases to result in zero C8's being sold to Canada?

...and up go the used C8 prices in Canada!