CanAutM3

The new luxury tax boosted the value of used cars. You are not running away by buying used…

guards85

Let's not forget proposed capital gains tax increases, soon they'll be taxing gains on principal residence too. It's no wonder so many folks are bailing.

shuz

That tax knocked my build from a c4s to a c4.

jstap808

so why not buy from the US side and drive it over the border? pay your registration or whatever canadian car requirements you need to do to get the car licensed and voila. or buy cheap property over the border, register and then drive back to canada.

Onami

Luxury tax applies to any car that has not been title/registered before regardless of where it was first delivered - so a new US car would still face luxury tax when imported to Canada. Any used car avoids luxury tax whether purchased in the US or Canada.

jstap808

got it, so wire me money to buy it here in the US, let me drive it 1 ft, I'll sell it to you at the purchase price as "used car" and bam! just buy me a beer for any "inconveniences" haha

CanAutM3

Luxury tax would still apply even if used. Further, when you factor the Canadian MSRP and FX, the cars are still cheaper in Canada despite the luxury tax. Below an example for the turbo-S (Luxury Tax is imbedded in the MSRP on the Canadian configurator), so in this example the turbo-S is still 15k USD cheaper in Canada.

bluelines1974

That doesn't work either, since CAD pricing is relatively cheaper, and you'd also have to pay 6.1% duty bringing it across the border.

bluelines1974

Luxury tax doesn't apply to used cars. Bringing a used car into Ontario requires payment of the RIV fee and duty, and then sales tax when you register the car at Service Ontario. You wouldn't be charged luxury tax.

CanAutM3

My understanding is that the luxury tax does not apply to a used car already in Canada; the tax is applicable at moment of import.

bluelines1974

Apologies, you are correct. The scam just gets better and better. Most likely in the import scenario they stack it up as follows:

Duty on purchase price
HST on purchase price + duty
Luxury tax on purchase price + HST + duty

As I said earlier, it wouldn't be so bad if they weren't literally incinerating the tax revenues the second they received them.

Hunky

The snowbirds that come here from Canada tell bad tales of taxation, government run everything, etc in Canada. God awful weather. I sure as hell would not live there. YUK.

bluelines1974

Canada actually is well placed to be one of the best countries in the world. We have ample space, all the natural resources the world needs, and people who are generally accepting and hard working. All we need is a different government, since our current Federal government seems intent on burning everything to the ground so we can all have an equal share of misery.

Haros

BC luxury tax applies to used cars at its market value, federal luxury tax is applied on new cars only.
If you are like me, you are taxed first the federal lux tax and THEN the BC lux tax on the total price. Tax on tax.
My exact build is $10k more than USA with direct currency conversion - it’s only cheaper if you are not a BC resident.

Hunky

I get that and hear similar from the Canadians I know who are very fine people and a pleasure to be around. Your country is in dire need of a major change in government as you point out. Elections have consequences, very few Americans need to be convinced of that fact at this point.