Why Classic Cars Are Leaving Canada in Droves

Canadian Poncho · A Poncho Legend!

Why Classic Cars Are Leaving Canada in Droves

68 Grande · Guru

Some good questions about luxury tax, not here in Mb, not yet anyway. How much of this is fact and how much generalization?

European countries have luxury and road tax applicable to some vehicles but I am not up todate anymore on which countries have it. But I can recall many Europeans complaining about road taxes etc as compared to Cdn.

I shouldn't have read this and certainly won't show my wife...........

Canadian Poncho · A Poncho Legend!

A friend of mine is a bird dog for a company in Europe that sells classic cars. He does well on the finders fees. Still it saddens me the quality of cars he finds that end up overseas. I guess it's all a matter of who has the money to buy them.

mike667 · Poncho Master!

My last 3 classic cars I had were shipped overseas. The 68 Riviera, 69 Monaco and the 71 LTD.
Kijiji buyers just wasted my time. Had them then listed on eBay and they sold to overseas buyers.
Still wish I had kept them though...

Just remember to keep paperwork. Because the MTO here doesnt know you sold them overseas and you have to have a written statement with proof showing they were sold. Otherwise the cars still showed under your name...

NOS · Poncho Master!

I'm not aware of any luxury taxes in Canada ! Been wrong before thou;

dale @ NOS

mike667 · Poncho Master!

Doesnt BC have a luxury tax on high end vehicles?

Greaser · Canadian Poncho Superstar!

Car Sales Tax Across Canada: Who's Paying What & Where

https://www.canadadrives.ca/blog/car-guide/car-sales-tax-across-canada

BC Luxury Car Tax

BC's tax on luxury vehicles has been a hot topic of debate recently. In Canada's westernmost province, vehicles priced $125,000 or higher are subject to a higher tax bracket. If you plan on buying something like an Aston Martin, Lamborghini, or Ferrari, remember that any higher tax rate applies to the total amount, not just the incremental amount. Supposing you buy a luxury car costing $200,000, youll pay at least 20% in taxes whether you purchase in a private sale or dealership. Thats $40,000!

Dealership Sale Price (PST)	Private Sale Price (PST)
Under $55,000 (7%)	Under $124,999 (12%)
$55,000 - $55,999 (8%)
$56,000 - 56,999 (9%)
$57,000 - $124,999 (10%)
$125,000 - $149,999: (15%)	$125,000 - $149,999 (15%)
Over $150,000: (20%)	Over $150,000 (20%)

MC · Canadian Poncho Superstar!

I hate to see our Canadian cars go overseas, because I think once they are gone they are never coming back.

Sure, it's supply and demand, and our hobby has essentially become a business for many people. Our low dollar makes our cars more attractive to people in countries with stronger currencies. Now that I think of it, this is probably what's behind the surge in pricing that some of us have noticed lately. That, and covid craziness.

I can't see sales taxes being a huge motivator one way or the other, unless you buy and sell all the time. Here in NS, it's been 15% on everything for a long time - there was a time here when you only paid tax on new cars, but about 25 or 30-ish years ago somebody in govt realized that it would be great if you could skim a percentage of the sale each and every time a used car changes hands... better than printing money! Then people tried to skirt around the tax buy having receipts made for a low amount to lower the amount of tax paid - countered by the govt by making you pay tax on whichever is the greater - selling price or book value. Regardless, if you are buying an old car as a project or to keep for a long time, you pay your tax and then you're done - I would never refuse to buy a car based on taxes.

There are still some good deals to be had, as evidenced by some of the kijiji ads posted by forum members recently, but you have to act quickly on the good ones, or they are gone.

Oh well, it was good while it lasted, but like everything else, change has to come.

dualquadpete · Canadian Poncho Superstar!

This "Carbon Fee" [ read TAX] could be the death of our hobby?? O'Toole introduced the Conservative plan, which I think I heard a " penalty" for owners of more than 1 vehicle, hoping I didn't hear that right?? Trudeau's TAXGRAB is worse going up to $170 a ton in a few years & I'm not seeing this BIG rebate he's "yapping" about?

see2xu · Addicted!

Well, maybe things have changed, but I've imported four vintage cars into Canada, from the U.S., over my chequered career, and brought only one (the Beaumont) down here. I looked at formally importing my Impala a few years back, and the HST owing then ('13/'14) would have been based on some sort of Blue Book value, not a presented Bill of Sale document, so depending on how the CRA is keeping up with the rampant inflation in collector car values, but buying something at auction in Europe for an extravagant price may not trigger a big tax liability. They don't like relying on Bills of Sale, or invoices, they've figured out that friendly sellers with no skin in the game are more than happy to accommodate their customer with a document that underrepresents what actually transacted.

The $CAD is relatively strong right now, which usually incents the import of American cars.