Editor:
The NDP’s “new” used car sales tax is wrong. Rather than imposing a new tax on all used car sales why not crackdown on the offenders.
As a middle-income household, we purchase a used vehicle when the need arises. Seeking out a used vehicle that is below average market value affords us the opportunity to purchase a used vehicle.
Our latest purchase was October 2021. A used 2008 Ford Escape was located with an asking price of $3,500, this was below the average market price due to some mechanical maintenance issues.
We completed the purchase for $3,000. We declared the $3,000 on the vehicle transfer APV9 and paid the correct combined 12 per cent tax amount of $360 the Craigslist ad was retained and kept for evidence of the asking price as were the invoices for repairing the maintenance items.
Under the new NDP tax, we will be forced to pay an inflated tax amount that is reflective of the average used market value for a 2008 Ford Escape. No considerations of condition, options, kilometres or maintenance history would be considered in the average pricing.
VMR Canada (Vehicle Market Research) values the average 2008 Ford Escape at $5,100. Under the new NDP tax we would have paid $612 in taxes.
Had we been forced to overpay the tax by $252, the purchase may not have made sense. The extra $252 would have added to the cost to address the list of mechanical items requiring attention.
The NDP should educate the consumer on how to support their purchase price. If a consumer cannot support the below-market purchase price, then the government should use the average market value to calculate the penalty.
The NDP should not over tax everyone just because they have no will to crackdown on the real offenders.
Linda Stewart, Halfmoon Bay
