There are a few things you need to know before you buy a used car in British Columbia, especially if it's a luxury vehicle. B.C. charges a luxury tax on higher-priced cars, which makes the province’s used vehicle taxation framework unique in Canada. To give you peace of mind, here’s a step-by-step walkthrough explaining how to go about buying a used car in B.C.
Buying a Used Car in British Columbia
- Step 1: Research
- Step 2: Shop
- Step 3: Investigate
- Step 4: Purchase
- What to do if you’re scammed when buying a used car in B.C.
Step 1: Research
Heading to online vehicle listings may seem like the logical first step when shopping for a used car, but it pays to do some research first. Knowing what you’re looking for in your next vehicle can save you from flipping aimlessly through car ads or ending up with a vehicle you’re not happy with.
Consider attributes such as whether you need two or three rows of seats, how much cargo space you regularly use, and whether features such as all-wheel drive and Bluetooth connectivity matter. If you’re thinking about buying a vehicle with an alternative powertrain such as a hybrid, a plug-in hybrid (PHEV), or an electric vehicle (EV), do some research on the pros and cons of each so you can make an informed decision.
Focusing on a shortlist of vehicles that match these attributes will help prevent you from ending up back at square one. Find more detail on factors to consider when researching your next used vehicle in our guide to Buying a Used Car in Canada.
Step 2: Shop
Once you have a solid picture of the kind of vehicle you’re looking for, you can confidently begin investigating used car listings.
The safest route is to buy from a dealer registered with the Vehicle Sales Authority of BC (VSABC), either directly or through online vehicle sales listing sites such as CarGurus.ca. These registered dealers are required to follow laws and regulations that protect customers and can be challenged under provincial law if the vehicle is misrepresented.
You may be able to use your current car as a trade-in at a dealer. This will reduce the amount you pay, including in sales tax, and means you aren’t left having to sell your old vehicle. Dealerships will also have staff on site to handle certain parts of the sales process for you as outlined below.
Buying from a private seller is also an option in British Columbia, which may mean paying a lower price but involves more legwork and research.
Be on the lookout for curbers during your search. A curber is a seller or unlicensed dealer who misrepresents themselves or the vehicles they offer for their own gain. They routinely scam customers with practices such as odometer tampering, reselling stolen vehicles, or passing off flood-damaged or salvaged vehicles that can’t legally be registered. If a deal seems too good to be true, it likely is. Trust your intuition and be prepared to walk away from any deal that sets off alarm bells.
Step 3: Investigate
If you’ve found a car that seems like a good prospect, follow these steps to ensure you’ve investigated it thoroughly before you commit to a purchase.
The provincial public insurer, the Insurance Corporation of British Columbia (ICBC), is responsible for tracking vehicle history and information. To learn whether a vehicle has previously been reported as damaged or stolen through the ICBC, as well as whether it has any restrictions that could prevent it from being registered, a vehicle claims report can be ordered from the ICBC for $20.
This ICBC report does not contain information on outstanding liens (money owing) on the vehicle. These debts become the new owner’s responsibility once ownership is transferred. To avoid being saddled with an unexpected financial liability, order a third-party vehicle history report from an outfit such as CARFAX Canada. This will be more expensive, but will include this information and could save you much more money and hassle. The ICBC has an excellent chart illustrating the differences between the ICBC and CARFAX vehicle history reports.
If any reports are provided for you by the seller, look over them very carefully. Be sure that the vehicle identification number (VIN) and any other descriptions on the report match the car and that the registered owner is the same as the person or business you’re dealing with.
It’s also a good idea to ask the seller about any additional information that may be available on the car’s ownership history, whether service records are available, the status of its warranty including any extended warranties that may have been purchased, and whether any necessary recall work has been completed.
More information on how to verify whether the vehicle is being listed at a fair price, how to check its estimated fuel economy and safety ratings, what to look for during a test drive, and other steps to take before committing to a purchase can be found at the article on Buying a Used Car in Canada.
Step 4: Purchase
If everything checks out and you decide to begin the process of purchasing the vehicle, most of the remaining steps involve filing documentation with the ICBC.
A vehicle safety inspection report is only required to register a vehicle in British Columbia in certain instances, such as when a vehicle is imported into the province or has been rebuilt. However, a private vehicle pre-purchase inspection will cover the basic safety requirements, and a detailed mechanical inspection will look for a more thorough list of potential issues. It’s a wise idea to secure one or the other before purchasing a used vehicle to ensure you’re not saddled with unexpected and expensive repairs.
The provincial AirCare program, which required emissions testing for passenger vehicles, was discontinued at the end of 2014.
A bill of sale is not legally required in B.C., but it’s a good idea to complete one. This document typically includes details about the vehicle including the make, model year, and VIN, the odometer reading at the time of sale, the agreed-upon sale price, and signatures from both parties.
To complete the transfer of ownership after the seller has been paid, the buyer and seller must jointly complete the ICBC’s transfer/tax form. Typically, this form is only available by visiting an Autoplan broker in person, and requests information such as the vehicle’s ownership history, whether the purchase price is lower than the market value, and whether the transfer is a gift.
Both parties must complete the Transfer/Tax form together and take it, along with the seller’s original copy of the vehicle registration and legal identification for both parties, to an Autoplan broker within 10 days of the sale to transfer ownership.
When purchasing from a registered car dealer, an Autoplan broker will most likely work on site or close by and complete the transfer of ownership, registration, and insurance for you on the premises. When buying from an individual in a private sale, both parties will need to visit an Autoplan broker together to complete these steps.
Sales taxes are due to the ICBC’s Autoplan broker upon registration. In British Columbia, the used car taxation system is the most complex in Canada, particularly where luxury vehicles are concerned.
When you buy from a licensed dealer, you need to pay the federal government’s GST at a rate of 5%. However, the amount of provincial tax you’ll be charged is lower, which results in a net tax rate that’s the same as you would pay by going through a private seller, as long as the fair market value of the vehicle is assessed by the ICBC as being less than $55,000.
Below that price point, dealers charge 7% provincial sales tax (PST), but the rate climbs to 8% for vehicles priced from $55,000 to $55,999.99 and then to 9% for those priced between $56,000 to $56,999.99. Between $57,000 and $124,999.99, the rate jumps to 10%. Past that point, the province’s luxury tax rates kick in, and you’ll pay 15% on a car valued between $125,000 and $149,999.99. If you pass that $150,000 threshold, the rate increases to 20%.
If you buy from a private seller or if you acquire the car as a gift under a circumstance that still requires you to pay tax, then everything up to the point of $124,999.99 is charged a total provincial tax rate of 12% on the ICBC’s value assessment. On vehicles priced above that range, the same luxury tax rates of 15 and 20% apply as above.
When you submit the transfer of ownership to your Autoplan broker, you’ll be asked to provide the following:
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your driver’s licence
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the seller's signed original vehicle registration
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a completed Transfer/Tax Form (APV9T) with original signatures from both you and the seller
Your vehicle insurance and licence plate will be arranged at this point, and you’ll also be required to pay the sales tax. ICBC recommends that the buyer and seller visit an Autoplan broker together to make the process simpler. This process must take place within 10 days of the vehicle purchase.
What to do if you’re scammed when buying a used car in B.C.
Once you’ve signed a sales contract to buy a used car in British Columbia, that agreement is binding with no cooling-off period. This means your ability to fight back is limited if you later find out you were scammed. The best prevention is to follow the steps above and in our guide to Buying a Used Car in Canada carefully to ensure the vehicle is legal to sell and in good condition before completing the sale.
Dealers registered with VSABC must:
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sell vehicles in a clear and transparent manner
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stand behind the statements they make to you about the vehicles being sold
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clearly explain the purchase terms and let you agree or disagree to them
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provide a cost of borrowing statement for a loan or a lease before you agree to the purchase
If you get caught in a scam after buying a car from a registered dealership in B.C., VSABC may be able to help in situations where a dealer:
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does not provide the information you need to make an informed decision about the transaction
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does not disclose critical information about a vehicle before it is sold, e.g. if it is not roadworthy or was previously used as a taxi, emergency, rental, or lease vehicle
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does not declare previous damage to the vehicle and confirm the accuracy of the odometer
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does not disclose whether a vehicle was ever registered outside of B.C.
When you’ve bought from a curber or a private seller and discover you’ve been scammed, there’s unfortunately nothing you can do except attempt to take the seller to court. Scammers have a tendency to disappear after shady deals, so you’ll most likely be out of luck. Protect yourself by thoroughly investigating every aspect of a used car before agreeing to the sale. No car, no matter how rare or how good a deal, is worth this kind of hassle. If you sense something is off, trust your intuition and walk away.
