Am I crazy or is this the worst time ever to buy a vehicle?

[Xtrema]

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Attachment 107547

$20k off MSRP in two months?

$106k then as luxury tax kicks in.

[ExtraSlow]

I think people don't understand what that advertisement says.

[90_Shelby]

Does anyone know if the liberal proposed luxury tax is confirmed? I haven’t been able to find anything on it lately.

[ganesh]

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Does anyone know if the liberal proposed luxury tax is confirmed? I haven’t been able to find anything on it lately.

It still needs the parliament approval and if it goes through it will come to effect on Sept 1 2022

[90_Shelby]

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It still needs the parliament approval and if it goes through it will come to effect on Sept 1 2022

Thanks

[max_boost]

Oh shit 20% on vehicles over $100k date manufacturer of 2018 and on.
Does not apply to leasing tho.

I totally forgot about this

[you&me]

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Oh shit 20% on vehicles over $100k date manufacturer of 2018 and on.
Does not apply to leasing tho.

I totally forgot about this

It's been a while since I looked at it, but IIRC it does apply to leasing. It will be 20% of the amount over $100,000, or 10% of the total price, whichever is less. That amount will be added to the MSRP, and it's from that all-in figure that the lease will be calculated from, just as it is now with GST.

Edit - NM, looks like it does not apply to leases. In that case, I can imagine a lot of single-payment lease scenarios... $100k car, $99,000 "single payment", $1,000 "buy out" in 3 years...

[max_boost]

so the max tax amount is $20k from what I am reading?

It doesn't apply to me but @shakalaka who is always flipping through cars!

[rage2]

The tax is applied to the importer (dealership) so lease finance or cash you’re paying for it one way or another.

Already seeing dealers posting beat the tax promotions.

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so the max tax amount is $20k from what I am reading?

It doesn't apply to me but @shakalaka who is always flipping through cars!

No lol. It keeps going up.

From above said promotion:

[max_boost]

Ohhh as always thanks raj for reading for the rest of us haha

[you&me]

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so the max tax amount is $20k from what I am reading?

It doesn't apply to me but @shakalaka who is always flipping through cars!

No, there is no maximum.

For example on a $500k Ferrari, the tax would be the lesser of 10% of the total price ($50k) or 20% of the amount over $100k ($400k; $80,000 in tax).

Basically, any car under $200,000 will be subject to the 20% tax calc and any car over $200,000 will be taxed at the 10% rate.

[max_boost]

Interesting. What will that do for used supercar prices. I think I am doing the marth in my head but not sure lol so buy pre 2018??

Vehicles - Passenger vehicles, with a date of manufacture after 2018, typically suitable for personal use including coupes, sedans, station wagons, sports cars, passenger vans, and minivans with seating capacity of not more than 10 passengers, SUVs, and passenger pick-up trucks will be subject vehicles for purposes of the new tax.

https://www.bdo.ca/en-ca/insights/ta...ury-goods-tax/

[shakalaka]

I thought it was already applicable on brand new vehicles which I thought was still okay but based on above it looks like 2018 and newer.

Also in that link it says if you are leasing then you don't pay it so what's stopping people from leasing and after the 3-4 year term the residual is below 100K, wouldn't you avoid the tax?

[killramos]

Do vehicles have to land before September to qualify?

Or can I order something and pre buy it?

[ganesh]

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Do vehicles have to land before September to qualify?

Or can I order something and pre buy it?

My assumption is that you need a VIN in order to 'buy'.
I am in a similar boat and ETA for my production is October. So I am not even going to bother about buying and I will just pay the 20%

[shakalaka]

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Do vehicles have to land before September to qualify?

Or can I order something and pre buy it?

If you have a written contract with agreed upon pricing prior to January 2022 then you are exempt based on what I understand, otherwise it's too late. But check with the dealer some maybe wiling to be a it more flexible before the law kicks in. As I say though just lease it if you can and if done under a corp., you can write-off the interest as well so it's something. Ain't no way I am going to start paying the 20% bullshit, so either I will stop swapping cars with the same frequency or I will figure out a work around with some dealers. lol

[killramos]

I don’t do car payments.

[max_boost]

Is it a car payment if you heloc it

[killramos]

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Is it a car payment if you heloc it

I say. Yes

[cam_wmh]

i know, i know.. not really what this thread is about..

but.. shiiiiiiiit.,
https://www.kijiji.ca/v-cars-trucks/...7-41fe762242e4