Tax on private sold used vehicles. What do you guys usually do?

[E-SPEC]

A lot of people will try to put a lower price as sold in agreement with party's in attempt to spend the least on tax. Have you ever seen people get In trouble over this? I'm sure yes when redicoulous amounts are exaturated. I've heard that if a vehicle is sold for under 90% market value they want to you to write the reason why.

[BIC_BAWS]

"engine needs work"

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[Dbone]

When I sold my E36 M3, the guy said ICBC didn't take into account it was an M car. It just looked at prices for E36's, and we had to explain why the guy was buying an E36 at way over the normal price.

[TouringTeg]

Same goes for Acura Integra Type R. They put all Integra's into one basket. All are worth like $4k

[underscore]

I think they do that for a lot of cars. They don't consider a Celica GTFour RC from a regular Celica GTFour or Alltrac, which is understandable, but then they don't consider a GTFour or Alltrac different from a 2WD N/A model. Apparently they're all the same and all worth $500.

As for reducing the amount listed for taxes, I imagine everyone just says the car needs mechanical work. I've never heard of anyone get in trouble for it, maybe because they realizes it's a huge scam to charge sale tax on a used vehicle sold privately. If you're selling some accessory with it (winter tires, etc) you could just say the extra money you received was for that. So if anyone asks a lot of people are getting really shitty deals on winter tires with the car they just bought

[ZN6]

Originally Posted by underscore

I think they do that for a lot of cars. They don't consider a Celica GTFour RC from a regular Celica GTFour or Alltrac, which is understandable, but then they don't consider a GTFour or Alltrac different from a 2WD N/A model. Apparently they're all the same and all worth $500.

As for reducing the amount listed for taxes, I imagine everyone just says the car needs mechanical work. I've never heard of anyone get in trouble for it, maybe because they realizes it's a huge scam to charge sale tax on a used vehicle sold privately. If you're selling some accessory with it (winter tires, etc) you could just say the extra money you received was for that. So if anyone asks a lot of people are getting really shitty deals on winter tires with the car they just bought

I was "lucky" when my car had an engine fire and there were a lot that were going for around 5000-6000 on CL and I got the "market value" for one at the time. Alltrac.net still has that story on the boards.

I'd honestly declare the full value of the car 'cause it's a basis for valuing the car when shit does hit the fan. i'm not gonna save a few hundred in taxes when it means i lose a few thousand on value for low balling if an accident occurs.

Which brings up the point, I never understood why people bought car insurance as a pleasure vehicle when they use their car daily for work. When an accident does occur, you can bet ICBC will do their best to deny your claim. You can outsmart ICBC a few times, but they can screw you when you least expect.

[The Producer]

no car has perfect paint, therefore every car needs a paint job.

what you pay/declare has no bearing on an insurance valuation ^^
(for now anyway)

if you make a claim on a pleasure vehicle and it's deemed not pleasure, you will pay a penalty. ICBC will not deny your claim based on this, they will simply assess a charge to the payout.

where do you get your info ZN6? if things have changed I'm happy to be corrected.

We could tangent into why we're paying tax over and over again on a used vehicle at all. Bad enough that we have to pay it when we own something for the first time. I've personally bought 2 vehicles back from owners I've sold them to (and paid more tax each time).

[vitaminG]

I have heard of someone who underdeclared the purchase price and claimed "mechanical issues" and icbc asked them for proof of repair or an estimate.

[coneZONE]

Awhile ago i bought a vehicle with some work needed, one of the things being a misfire, and the seller told the insurance broker "engine missing" upon ownership transfer, didn't have any problems
The broker was a bit skeptical but the seller was really persistent so it worked out lol

The other time we had bought a vehicle under market value, it got written off due to vandalism, ICBC gave us full market value, plus the amount that i had spent on repairs recently, as I provided the receipt

[twitchyzero]

anyone tried contacting their MP to see if they will take this double-dipping issue seriously or are they just gonna have a good laugh at the effort to cut out another small but consistent cash flow?

[snowfarmer]

Producer is absolutely correct.

OP, I think probably the only way one would get “caught” for underdeclaring value would be if somebody reported it to the authorities (ICBC? Revenue Canada? I don’t even know who the hell a person would report it to?) probably if a buyer is polite with the seller and doesn’t blast it out to the world on social media that they did this then no one is going to investigate unless you just bought a Ferrari for $2.

Originally Posted by The Producer

no car has perfect paint, therefore every car needs a paint job.

what you pay/declare has no bearing on an insurance valuation ^^
(for now anyway)

if you make a claim on a pleasure vehicle and it's deemed not pleasure, you will pay a penalty. ICBC will not deny your claim based on this, they will simply assess a charge to the payout.

where do you get your info ZN6? if things have changed I'm happy to be corrected.

We could tangent into why we're paying tax over and over again on a used vehicle at all. Bad enough that we have to pay it when we own something for the first time. I've personally bought 2 vehicles back from owners I've sold them to (and paid more tax each time).

[westopher]

Originally Posted by Dbone

When I sold my E36 M3, the guy said ICBC didn't take into account it was an M car. It just looked at prices for E36's, and we had to explain why the guy was buying an E36 at way over the normal price.

Ha same thing happened to me as the buyer. The ladies at ICBC thought I was getting fucked over so badly.

[GabAlmighty]

Needs; paint, engine, wheels, driveline, body panels.

[asma123]

I think it's absurd to double tax used cars on private sales.
What really pissed me off was when the hst was introduced and they jacked up the tax to 12% and when they reversed the hst they kept the tax at 12% fucking bs

[BIC_BAWS]

Originally Posted by TouringTeg

Same goes for Acura Integra Type R. They put all Integra's into one basket. All are worth like $4k

Originally Posted by Dbone

When I sold my E36 M3, the guy said ICBC didn't take into account it was an M car. It just looked at prices for E36's, and we had to explain why the guy was buying an E36 at way over the normal price.

Does this mean all the M cars, Type Rs, AMGs, etc. are all in the same insurance basket as their regular counterparts?

[donk.]

Originally Posted by asma123

I think it's absurd to double tax used cars on private sales.
What really pissed me off was when the hst was introduced and they jacked up the tax to 12% and when they reversed the hst they kept the tax at 12% fucking bs

Iv said it before, il say it again

Whats wrong with a car being resold lets say 6 times, over a span of 20 years?

New 20k > 2.4k tax
Resold 15k > 1.8k tax
Resold 10k > 1.2k tax
Resold 7k > 0.9k tax
Resold 3k > 0.4k tax
Flipped 4k > 0.5k tax
Resold 2k > 0.3k tax

Gov made 7.5k on a 20k car
Not including parts/insurance/gas/etc taxes

[Mancini]

Declare $1 and then send a copy to Revenue Canada with a big middle finger sticker on it.

[Edison_Chen]

In BC the department that is responsible for collecting he tax is Consumer taxation branch or Ministry of Finance. If there’s any audits that are done, I heard CTB does them but almost a year later.

[Energy]

Car needs paint or has dents. Rock chips, small scuffs, scratches, taps on bumpers etc etc. Paintwork is expensive and you can easily get quotes to repaint entire panels if anyone even asks.

[TouringTeg]

Originally Posted by BIC_BAWS

Does this mean all the M cars, Type Rs, AMGs, etc. are all in the same insurance basket as their regular counterparts?

I am not quite sure. I did declared value of $20k I pay about $1300 per yr with max discount

[68style]

Producer is right, the amount you declare on the APV9T transfer form has NO bearing whatsoever on any future insurance payouts in the event of a total loss.

People with M cars posting here went to shit autoplan agencies, every single model and sub-model is on the black book/gold book/blue book guide they are supposed to use to check your sale price.

What do I usually do? Phone an agent and ask what gold book is for the vehicle you intend to purchase. That will give you an idea of how much you can play with the price without raising too many eyebrows if you want to play safe.

[bcrdukes]

68style is right. You guys need to find a good Autoplan agent and stick with them. The information and their knowledge of the processes and procedures revolving around Autoplan and ICBC's policies are priceless. Sadly, we often take them for granted.

[underscore]

Originally Posted by 68style

People with M cars posting here went to shit autoplan agencies, every single model and sub-model is on the black book/gold book/blue book guide they are supposed to use to check your sale price.

How far back do those go though? A modern M3 might be in there, but I'd be surprised if they're covering 20+ year old cars.

[Dbone]

Originally Posted by 68style

People with M cars posting here went to shit autoplan agencies, every single model and sub-model is on the black book/gold book/blue book guide they are supposed to use to check your sale price.

This guy wouldn't shut up about how crazy it was that the fact it was an M car didn't change the expected price. It took us 90 minutes to transfer the car because he wouldn't stop going on and on about how good the M cars are and how he had one once but wrecked it. He also wanted a reason to include why the price was higher than expected (to prevent money laundering maybe?).

Yes the model is on the guide, but I think he said the expected price was something like $6 or $7k for an E36 M3.

[The_AK]

I put a negative amount and get the Gov't to pay me back