Kelowna is the jewel of the Okanagan, known for its stunning lake views, wineries, and hot summers. But whether you’re driving a truck for work or a convertible for those sunny days on Harvey Avenue, buying a used vehicle here comes with a hidden cost: the 12% PST.
For many Kelowna residents, purchasing a used car privately is a smart way to save money. But ICBC has a rule that can catch you off guard. They calculate the tax based on the "average wholesale value" (often the Canadian Black Book value), not necessarily what you paid.
The Kelowna Tax Surprise
Imagine you’re buying a used Subaru Outback, perfect for winter trips up to Big White or driving the Coquihalla. The seller in Rutland is asking $8,000 because it has high kilometres and some rust from the winter roads. You agree on the price.
But when you go to register the vehicle, the agent tells you the book value is $11,000. Suddenly, you’re paying tax on $11,000 instead of $8,000. That’s an extra $360 in tax for a car that isn’t worth the book price!
This is a frequent issue in the Interior, where vehicles often have higher mileage or wear and tear from highway driving.
How a FIN-320 Appraisal Helps
You don’t have to accept the book value. You can obtain a FIN-320 Appraisal from a licensed appraiser like IC Appraisal BC.
If our professional appraisal determines the vehicle’s true market value is lower than the book value (due to mileage, condition, or damage), you can use that appraised value to calculate the tax. This can save you hundreds of dollars.
Why Kelowna Drivers Choose Us
- Interior Expertise: We understand the specific wear that Kelowna vehicles face, from sun damage to rock chips.
- Remote Convenience: You don’t need to drive your unregistered car across the bridge. Our process is handled online.
- Fast Turnaround: Get your appraisal quickly so you can enjoy the road.
Common Kelowna Scenarios
- High Mileage Highway Runners: Vehicles that regularly drive the Coquihalla or Connector accumulate kilometres fast. High mileage drastically reduces value, but the book value might not reflect it accurately.
- Winter Beaters: Buying a cheap car for the winter months? These often have cosmetic issues or mechanical quirks that make them worth far less than book value.
- Sun Damage: The intense Okanagan sun can fade paint and crack interiors, lowering resale value.
Save on Your Next Used Car
Don't let the tax man take more than his fair share. If you're buying a used vehicle in Kelowna or the Okanagan, check the book value.
Get your Kelowna car appraisal online today. Save your money for a winery tour or a day on the lake instead.
