Why Buying a Used Car on Vancouver Island Just Got More Expensive (It’s Not Just the Ferry)

Islanders are used to paying a little extra for everything—gas, groceries, and shipping. We call it the "Island Tax." But in 2026, the cost of buying a used vehicle in Victoria and Nanaimo is hitting hard in a different way.

New data shows that British Columbia is leading the western provinces in used car price increases. Limited inventory on the Island means sellers can command premium prices. But the pain doesn't stop at the purchase price.

The Double Whammy: Price + PST

When you buy a used car in BC, you pay Provincial Sales Tax (PST) on the purchase price OR the average wholesale value—whichever is higher. With market prices climbing, ICBC's book values are also adjusting upwards.

If you are buying a truck in Saanich or a commuter car in Langford, you might find yourself paying tax on a "book value" that assumes your car is in perfect condition, even if it has salt damage or high mileage.

Don't Overpay the Province

You can't control the market price, but you can control the tax. If you feel ICBC's value is unfair for your specific vehicle, an appraisal is your legal right.

Get an appraisal today and ensure you only pay tax on the actual market value of your car, not an inflated book number.