Americas Canada: our new luxury vehicle tax impact on the Grenadier

[holdmybeer]

Just some math on the new luxury vehicle tax we have coming to Canada. (Not happy about this, just sharing...)

I reckon the impact on the Grenadier will be $2K or less. I'll share my assumptions and see if others agree.

1. Vehicle must be over $100K.
2. Vehicle must weigh under 3,856 kg.
3. The luxury tax will then be the lesser of 10% of PRICE, or, 20% of [PRICE-$100K].

#1 is a probably.
#2 is a yes. Hey Ineos, wanna fit Canadian models with a few hundred kg of special ballast I can unbolt at home?
#3 means if a Grenadier came in at $110K. It would be subject the lesser of 10%*PRICE which is $11K or 20%*(PRICE-100K) which is $2K. So, $2K.

Source link: Canada Revenue Agency

 

[Tazzieman]

<Utilitarian> and <luxury> are uncomfortable bedfellows
Though leather interiors in the 70s defined you (well not me) as a wealthy motorist

 

[PAV]

Just some math on the new luxury vehicle tax we have coming to Canada. (Not happy about this, just sharing...)

I reckon the impact on the Grenadier will be $2K or less. I'll share my assumptions and see if others agree.

1. Vehicle must be over $100K.
2. Vehicle must weigh under 3,856 kg.
3. The luxury tax will then be the lesser of 10% of PRICE, or, 20% of [PRICE-$100K].

#1 is a probably.
#2 is a yes. Hey Ineos, wanna fit Canadian models with a few hundred kg of special ballast I can unbolt at home?
#3 means if a Grenadier came in at $110K. It would be subject the lesser of 10%*PRICE which is $11K or 20%*(PRICE-100K) which is $2K. So, $2K.

Source link: Canada Revenue Agency

Yep - the luxury tax is of great concern for me too - otherwise lease (and later buyout) seems to be the only viable option to avoid it.
If the "chicken tax" gets waived, it might help reduce the retail price. We'll know soon enough.

 

[Krabby]

If I'm not mistaken, the chicken tax applies only to "light trucks" and not wagons/SUVs. I could be wrong though - always thought it was just pickups and vans.

Does it affect Canada at all though?

 

[PAV]

If I'm not mistaken, the chicken tax applies only to "light trucks" and not wagons/SUVs. I could be wrong though - always thought it was just pickups and vans.

Does it affect Canada at all though?

The Chicken tax normally doesn't apply in Canada, but it has, in some cases, applied to vehicles sold in both countries. I noticed that INEOS refers to the Grenadier as a "station wagon" - which may be an attempt at avoiding the tax-inducing truck classification. Speaking of which, the Grenadier pick-up truck was recently spotted testing in Scandinavia.

 

[PAV]

OK, so this post in the forum seems to spell out INEOS' upcoming plans for NA.
There's mention of the pick-up model coming to Canada only (NO chicken tax).
The long wheelbase station wagon sounds very appealing - my guess it will be based on the pick-up chassis.

 

[Prodriver]

Make sure everyone gives P2 a full mandate to stop this tax.