If you flip cars in British Columbia, you know the struggle. You spot a deal on Marketplace—a 2010 BMW with a misfire for $3,000. You know you can fix it and sell it for $6,000.
But then you go to the insurance broker to register it.
The Shock: ICBC pulls up the "Canadian Black Book" value. They say the car is worth $8,500 in "average" condition. They want you to pay 12% PST on $8,500.
That’s $1,020 in tax. On a car you bought for $3,000.
Your profit margin just took a massive hit. But it doesn't have to be this way.
The "Black Book" Doesn't See Dents
The problem with the presumptive tax system is that it assumes every car is in average condition. It doesn't know about:
- The blown head gasket
- The slipping transmission
- The peeling clear coat
- The ripped interior
If you are buying "project cars" or "mechanic specials," you are overpaying tax by hundreds—sometimes thousands—of dollars on every single flip.
The Solution: A FIN-320 Appraisal
You have the legal right to pay tax on the actual condition of the vehicle, not the book value. To do this, you need a completed FIN-320 Motor Vehicle Appraisal Form from a licensed appraiser.
At IC Appraisal BC, we specialize in accurate valuations for project cars. We review your photos, document the damage, and assign a value that reflects reality.
Example: The BMW Flip
- Purchase Price: $3,000
- Black Book Value: $8,500
- Tax Without Appraisal: $1,020
- Our Appraised Value: $2,800 (due to mechanical issues)
- Tax With Appraisal: $336
- Total Savings: $684
For a cost of just $75, you save over $600. That goes straight back into your profit.
Already Paid the Tax? Get a Refund.
If you registered a vehicle in the last 30 days and overpaid tax, it’s not too late. We can provide a retroactive appraisal. You mail it to the Ministry of Finance, and they send you a cheque for the difference.
Sell Faster by Helping Your Buyers
Smart flippers also use this as a selling tool. When you sell that finished car, tell your buyer: "I can help you save on tax with an appraisal referral." It lowers their total cost to buy from you vs. a dealership.
Get Your Appraisal Started Today - 100% Money-Back Guarantee if we can't save you more than the fee.
