Richmond is known for its incredible food, bustling night market, and proximity to YVR. It’s a flat, easy city to drive in, but buying a used car here has its own set of challenges—specifically, the 12% PST on private vehicle sales.
In British Columbia, when you buy a used car privately, ICBC calculates tax based on the greater of the purchase price or the "average wholesale value" (the Canadian Black Book). For Richmond drivers, this rule can lead to significant overpayment of tax.
The Richmond "Book Value" Reality Check
Let’s say you’re buying a used luxury SUV in Steveston. It’s an older model, has high kilometres from trips to the US, and needs some cosmetic work. You agree on a price of $20,000. However, when you visit your Autoplan broker near Richmond Centre, the system says the book value is $25,000.
Suddenly, you’re paying 12% on $25,000 ($3,000) instead of $20,000 ($2,400). That’s a $600 difference! Why pay tax on value that isn't there?
A Legal Solution: The FIN-320 Appraisal
You can avoid this unfair tax hit by obtaining a FIN-320 Appraisal. This is a government-approved form completed by a licensed appraiser like IC Appraisal BC.
If our appraisal demonstrates that the vehicle’s actual market value is lower than the book value (due to mileage, condition, or history), ICBC will accept our value for tax calculation. It’s a straightforward way to save money legally.
Why Richmond Residents Choose Us
- Local Expertise: We understand the Richmond market and the specific factors that affect vehicle value here.
- No Traffic: Avoid the congestion on No. 3 Road. Our appraisal process is 100% online.
- Fast Service: We provide quick turnaround times so you can get your car registered and insured ASAP.
Common Richmond Scenarios
- High Mileage Airport Runners: Cars used for airport runs or commuting into Vancouver rack up kilometres quickly. High mileage is a key factor in reducing value below book price.
- Minor Body Damage: In a busy city, bumper scrapes and door dings are common. These imperfections lower value, but the book value assumes "average" condition.
- Import Vehicles: Richmond has many unique import vehicles. Sometimes the generic book value data doesn't accurately reflect the niche market for these cars.
Don't Overpay Tax in Richmond
If you're buying a used car in Richmond, don't let the book value be the final word. If it seems high compared to what you paid, reach out to us.
Get your Richmond car appraisal online now. Keep your savings for a great meal in the city instead.
