shrimp money

Because the dealership doesn’t own the vehicle until it arrives and are invoiced by Porsche.

kayjh

Not the boat and pick up I'm looking at.

Mark S

Interesting. I was able to prepay for my 911. I bought my 911 from a dealer about a 4 hour drive away. I wanted to just get the the car and go, so I pre paid a couple of days before the dealer got the car. Maybe it’s different in Canada.

OliverK68

Dealers are always happy to take your money.

Mark S

Agreed. It was perfect, told them just wanted the car any nothing else they where selling. When I picked the car up it took maybe 20 minutes.

bobblehead

does not hurt to ask. Maybe dealer will expedite the process with Porsche Canada to help out the customer.

NiteJav

At this point if you are risking getting hit by this tax try to find out if you can fly the car here, that might end up being 'cheaper', (not by much) and you get to drive it during all of august. (assuming its built)

Chewy66

I am in the same situation. My car was completed 7/11, but not shipped yet. I hope to get it before September.

The exact rules around the luxury tax still seem to be unclear. Even the dealership doesn't know. I also red an article from BDO stating that if a bona fide agreement was made prior to X date (I don't remember), then the luxury tax shall not apply. Again, this is unconfirmed.

I am quite stressed about this and angry. It's a complete non-sense political move and has no economic facts backing it.

bobblehead

I believe it’s grandfathered prior to Jan 1, 2022.


https://www.canada.ca/en/department-finance/news/2022/07/government-announces-details-about-the-implementation-of-luxury-tax.html

Third paragraph

Albechow

same here!
my car was supposed to be here in Toronto by Mid Aug, but I guess now the latest estimated time arrival is mid to late Sept.
It’s just not right to pay extra $20k for the same car.
And I ordered it in June of 2021!
insane

breny4104

Do you Canadian peeps at least get a tax deduction for the taxes you pay on the car?

kayjh

Nope, and the lease is too high to deduct as a business expense and you can’t depreciate it as a business expense either ( at lease not if the capital cost is above something like $60,000. It’s no wonder my California cousins tell me I’m living in a socialist country.

gthal

I think the rules are fairly clear at this point notwithstanding some very unique and rare situations. Here is the bottom line based on what I understand... the 20% luxury tax will apply to any car delivered on or after September 1. It applies to all forms of financing including leasing (although leasing works differently but the economic impact to the buyer is the same). If an agreement to purchase was prior to January 1st of this year, there may be an exception. If after, you are SOL. As far as I can tell, this is a done deal and the only way to avoid the 20% on the price in excess of $100,000 is to have a car arrive and be delivered before September 1.

I agree on not liking it... I suspect anyone buying an expensive car, boat, etc would feel the same way.

shrimp money

I would explore owning the car in an LLC. And in the future, sell the LLC, which happens to own a 911. Not saying it would work, as I’m unaware of the laws in Canada.

iguana

The tax only applies to new cars, not used cars. There may be reasons to put a car into a LLC, but does not help wet this tax.