Why Get an Appraisal
Vehicle Appraisals| Why?
As of October 1, 2022, the Government of British Columbia updated how Provincial Sales Tax (PST) is calculated on privately purchased vehicles. The tax is now based on the "average wholesale value" as determined by the Canadian Black Book.
This means the assessed value does not consider factors like significant repairs needed, damage, high mileage, or other issues that may reduce a vehicle’s actual worth.
To have these factors properly reflected, a professional appraisal is required.
The appraised value refers to the retail value as determined by a qualified motor vehicle dealer or licensed appraiser. The appraisal must be completed on the official Motor Vehicle Appraisal Form, and can be submitted by either the buyer or seller.
Accurate and Reliable Appraisals by Island Auto Appraisals
Non-Appraisal Private Purchase | Tax Savings $0.00
Non-Appraisal Private Purchase | Tax Savings $0.00
Non-Appraisal Private Purchase | Tax Savings $0.00
2015 Mini Cooper S (Automatic)
Black Book Value: $12,500
Scenario:
This vehicle has exceptionally high mileage at 302,000 km, which places it well beyond typical retail consideration. It also has a valve cover oil leak, worn tires, and likely requires major engine repairs. The vehicle was privately purchased for $500.
Without an Appraisal:
- Purchase Price: $500
- Black Book Value (used for tax): $12,500
- PST @ 12% (on $12,500): $1,500
Outcome:
Without an appraisal, PST would be based on the inflated book value—resulting in a tax bill three times higher than the vehicle’s actual purchase price.
Appraisal Private Purchase | Tax Savings $1,360.00
Non-Appraisal Private Purchase | Tax Savings $0.00
Non-Appraisal Private Purchase | Tax Savings $0.00
2015 Mini Cooper S (Automatic)
Black Book Value: $12,500
Scenario:
This Mini Cooper has 302,000 km, well beyond typical retail standards. It also has a valve cover leak, worn tires, and likely requires major engine repairs. The vehicle was purchased privately
for $500.
With an Appraisal (Island Auto Appraisals):
- Appraised Value: $500
- PST @ 12%: $60
- Tax Savings: $1,440 (vs. tax on Black Book value)
- Appraisal Cost (Remote): $80
- Net Savings: $1,360
Outcome:
Thanks to an Island Auto Appraisals valuation, the owner saves $1,360 in tax—even after the appraisal fee is factored in.
