How an Appraisal can save you money
If you are purchasing or have recently purchased a vehicle in BC, it’s good to know how transfer tax is calculated - and how an appraisal can save you money!
The examples below highlight how an appraisal can have dramatic effects on how much PST you pay.
Example 1
You buy a motor vehicle for $4,500. When you go to register the vehicle with ICBC, they determine that the Black Book value of your vehicle is $7,000.
You would have to pay 12% tax on the $7,000, a total of $840 in taxes due.
You then had your vehicle appraised, and after accounting for the cigarette odor and damage to the interior and exterior, the vehicle is appraised at a value of $4,600.
You now only have to pay 12% tax on the appraised value of $4,600, a total of $552 in taxes.
that’s $288 in savings!
Example 2
You buy a motor vehicle for $3,000, but this car has serious transmission problems. When you go to register the vehicle with ICBC, they determine that the Black Book value of your vehicle is $10,000.
You would have to pay 12% tax on the $10,000, a total of $1,200 in taxes due.
You then had your vehicle appraised, and considering the severe mechanical repairs required, the vehicle is appraised at a value of $2,800.
You now only have to pay 12% tax on the purchase price of $3,000, a total of $360 in taxes.
that’s $840 in savings!
! PST is due on the whichever figure is higher: the appraised value, or the purchase price listed on your Transfer Form (APV9T)
If you have any questions, give us a call at 778-581-2930 and we’d be happy to discuss your options!
While every effort has been made to ensure accuracy on this page, please be aware that PST due on vehicle purchases is subject to change depending on ICBC policies. Feel free to get in touch with us if you believe any of the above examples are out of date with current rates.