Quote:
Originally Posted by Germanauto
Is this a new thing? I still feel I see luxo SUVs crawling all around Vancouver BC
A least in the US there's a Section 179 tax deduction which incentivizes such purchases.
|
I’m not completely familiar with B.C. sales tax laws but if I remember correctly, BC had their own “luxury tax” where the provincial tax rate (which already exists) changed depending on the price of the vehicle.
With the new luxury tax law applicable across Canada, you would be paying the luxury tax amount PLUS any applicable sales tax - essentially taxes on top of taxes and the luxury tax is paid up front. For the XM with $20k in luxury tax, that would have to be paid upfront as due on delivery regardless if it’s lease or cash. Imagine leasing a vehicle and having to pay $20k upfront for a car you’re going to return in 3-4 years.