Buying an EV Becomes More Affordable.
Purchasers of pre-owned zero-emission vehicles in British Columbia are now eligible to receive an exemption from the seven percent provincial sales tax. Effective February 23, 2022, used EVs are exempt from PST. The exemption applies to all motor dealer sales, as well as private sales of used EVs that have been driven for at least 6,000 kilometres. The minimum kilometre restriction applies only to private sales.
A zero-emission vehicle (ZEV) is a motor vehicle that is propelled by electricity or hydrogen from an external source and emits no greenhouse gases at least some of the time while the motor vehicle is being operated. This includes fully electric vehicles, vehicles that run exclusively on hydrogen, and plug-in hybrids. It does not include hybrids that are not plugged in.
The exemption was included in the provincial budget in February 2022.
EVs are growing in popularity among British Columbians and are predicted to make up 90% of all new car sales in the province by 2030. According to consumer research conducted by the ZEV Alliance, over half of respondents are considering purchasing an EV as their next vehicle. Those who would not consider purchasing an EV reported they were too expensive compared to ICE vehicles and/or that the short kilometre range was too restrictive for their driving habits.
For consumers, the PST exemption means a seven percent reduction in the cost of purchasing a used EV. When purchased from a licensed motor dealer, the exemption is provided at the point of sale. Plus, licensed motor dealers provide a mechanical inspection, ensuring the vehicle is road-safe. Dealers also provide a warranty and a vehicle history report, not to mention financing options, all of which provide peace of mind for consumers.
For automotive service providers, including sales, towing, mechanical repair and service, collision repair, and automotive recyclers, now is the time to become EVfriendly certified.
Listen to the full CKNW interview segment.
“We’ve been talking to [the] government about the full life cycle of electric vehicles for quite some time,” said ARA president and CEO Adrian Scovell during an interview with Stirling Faux on CKNW, March 5, 2022. “It is the way of the future and [the] government is seriously behind it. They’re actually looking for industry feedback on how to get the product adoption increased, and they began with rebates on new vehicles, but then, of course, once you’ve got them into the pipeline, now what happens? That’s when it became obvious that they needed to turn their attention to used, pre-owned electric vehicles.”