Bought a 'Beater'? Don't Pay 'New Car' Tax.

If you just bought a car for $2,000 that barely runs, the last thing you want to hear is that the government thinks it is worth $6,000.

Welcome to the world of buying a "Beater" in British Columbia.

The "Average" Trap

The Canadian Black Book (which ICBC uses) deals in averages. It assumes the car runs, passes inspection, and has decent paint.

It does not account for:

• The blown head gasket.
• The mismatched door panel.
• The 350,000 km on the odometer.
• The fact that it needs $3,000 in repairs just to be safe.

Don't Fix It Yet!

Here is the golden rule: Do not fix the car before you register it.

If you fix it first, its value goes up. If you appraise it while it is broken, its value is low. And you pay tax on the value at the time of registration.

The Strategy

1. Buy the car. Get the bill of sale.
2. Take photos immediately. Document every scratch, dent, and warning light.
3. Get an Appraisal ($75). We will certify that the car is worth $2,000, not the book value of $6,000.
4. Register it. Pay tax on the $2,000.
5. Fix it. Now you can repair it with the money you saved on tax.

Get Your Beater Appraised →