Friday, 5 June 2015

Rule #216: Used car tax

 Imagine being able to model a business after our government. Take our current topic of discussion here. Our beloved heads of state can collect mucho tax cash every time a car changes hands. That's quite a business and all with no advertising, no visiting clients and no overhead. Except the offices required to house people to collect the tax.

 Assuming a new vehicle is purchased for 30K and changes owners once a year for the next 10 years. Take average depreciation into account and 13% tax (Ontario HST). Our governments cut works out to $14,235.00. All for .....?
The breakdown looks like this (if you're interested):

 CarDepreciationResaleTax (HST)
New$30,000.00 $3,900.00
128%$8,400.00 $21,600.00 $2,808.00
220%$6,000.00 $15,600.00 $2,028.00
316%$4,800.00 $10,800.00 $1,404.00
48%$2,400.00 $8,400.00 $1,092.00
56%$1,800.00 $6,600.00 $858.00
65%$1,500.00 $5,100.00 $663.00
74%$1,200.00 $3,900.00 $507.00
83%$900.00 $3,000.00 $390.00
92%$600.00 $2,400.00 $312.00
101%$300.00 $2,100.00 $273.00

Dig this. 4.6 million cars sold each year in Canada X average sale price of 15,000.00 X 13% = almost 9 BILLION $'s in tax!

 My son just purchased his first nice car. Saved for years, found the one he wanted and bought it. Now, he just started a new job that requires him to have a pick up. So he has to sell this car that the government just collected $1,500.00 on and has to buy a truck, on which our fearless leaders will collect another 2 grand or so. Fair tax is fair, but this is ridiculously excessive.

 Thinking about saving a few bucks by skimming the price a little? Whatever, dude! The law states: "You must pay sales tax when you buy a used vehicle privately. The amount of tax is on either the purchase price or the vehicle's wholesale value, whichever is MORE." Unless of course: " You are a qualifying Diplomat or Status Indian" (because that's fair).

In the new world, tax on cars will be charged only once every 5 years.



  1. This is a huge scam and money grab and should be made illegal! Luckily I hold onto my vehicles for as long as I can before they die(usually 10 years) but I will think about this the next time I have to purchase another used vehicle....GRRRR!

  2. Help is on the way. Hang in there. Only 215 rules away from the new world where this will be a thing of the past.

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