An additional 25% tax, totally ridiculous. When you factor in all the other taxes such as the taxes every time you fill up, fees for plates and license, insurance, etc, owning a car is becoming a luxury ... but here we are. Alberta has it right. Shouldn't be paying tax on the car when the tax was initially paid with the first purchase.For the "luxury car tax" in British Columbia, people there are already paying a hefty tax which is might be more than the percentage "larryd" indicated above, since it depends upon the cost of the vehicle. To quote from a May 10, 2019 "Automotive NewsCanada" article (written by Dan Heyman in Vancouver):
On April 1, 2018, B.C.’s NDP government raised the provincial sales tax to 15 per cent from 10 on new and used vehicles priced between $125,000 and $149,999. On vehicles $150,000 and over, the tax increased to 20 per cent from 10. There’s also the five-per-cent federal GST, bringing the total tax bill on a $150,000 car to $37,500, a full 25 per cent. The increase also applied to leased vehicles, including customers already in a contract.
You'll find the full article here:
B.C. luxury dealers feel taxman's pinch
With a 25 per cent total sales tax, some dealers say they "can barely sell a car between $150,000 and $225,000."canada.autonews.com
So you're hit with an additional tax in BC when you buy a vehicle priced between $125,000-$149,999 (15%) then for any vehicle costing $150,000 or more, it's 20% (wow!). And from the above quote, I gather the luxury sales tax is likely calculated on the base price and before any other taxes are factored into the calculation, so the extra tax is likely NOT calculated on a price which includes HST. But right now this is unknown, since the Feds haven't introduced the vehicle tax nor given any details that I could find about how the tax would work. But I'd hope even the Feds wouldn't impose a tax on a tax...
If you want to be safe, order a car that works out to less than $100,000 in total, inclusive of any Provincial taxes, if that's possible. Another idea that might help, would be to have all dealer installed options separately invoiced, to reduce the over-all invoiced price on the vehicle, since these dealer installed options are add-ons that anyone can purchase after the initial vehicle sale.
But be thankful if you're not a BC resident, already facing these taxes. If the Feds tack on another 10%, the BC luxury car dealers are warning their business will really suffer, due to the high BC taxes already imposed on these purchases, as mentioned in this October 2019 article:
Liberals' proposed luxury car sales tax has some dealers sweating
B.C. dealers are calling the 10-per-cent tax “very concerning”driving.ca
So perhaps this is incentive to buy an expensive vehicle before the Feds bring in that tax. With all the COVID spending that's been happening at the Federal and Provincial levels, I suspect luxury vehicle taxes will be popular with governments, since not too many people will be sympathetic to those complaining about extra tax who want to spend $100K+ on a vehicle.
Oh and if you're in BC and hope to avoid paying their luxury vehicle taxes by purchasing a used vehicle privately, think again since the extra taxes apply to private sales as well. All other Provinces except Alberta impose some form of tax on private vehicle sales. You'll see this in this November 2019 article which gives a nice comparison to what the different Provinces currently do:
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Ordering my 1st Corvette from Brian Cullen (couple of questions)
- Thread starter DenisC8
- Start date
Yes. we have a socialist government and they have increased taxes on luxury cars and God knows what else? The thing I hate most about buying an expensive car is paying the huge taxes to the government so they can waste it.
Hello Denis. I'm also in the region and put my deposit down with Tracy in January 2018. This is the second Corvette I've bought from him.
Because I was so high on their list my car was ordered in Sept '19 and built in Feb 2020, the first day of production. Between Tracy and their GM and Service Manager they have provided excellent service. I don't have a bad word to say.
@Murray20c8 made a little booboo in his listing of extras. AC tax is $100, not $2000!!
A/C tax $100
OMVIC fee $10
Admin $249 (some Toronto dealers were at $800)
Fuel $100
Licence - varies if new plates and sticker.
good luck
thank you for your reply. Glad to see locals on the forum. Once more of us get our cars we should have a meet up.
l saw that car it is a diamond and you area man that made me put a DP on a 2025 Zora so l can fluff my feathers the same way .but Tanks to Tracy at BC l will be the 1st or 2nd dude out of the gate with a Zora.
l laid my hands on that car and that is what made my mind up for the same color as you picked hope you cleaned the droole of it from me bro
More than a slight boo boo LOL.
My purchase agreement is printed offset down one line. Freight is 2k
Thanks for catching that.
