By Blair Qualey
Over the last several weeks, as US tariffs have started to have an impact on our economy and consumer confidence, BC’s New Car Dealers have renewed our call for the provincial government to increase the threshold of its so-call Luxury Tax on vehicles to reflect reality.
The Luxury tax kicks in at $55,000 – when the average cost of a new vehicle is now approximately $66,000. As a result, many cars, SUVs, vans and pickups – that families and individuals require in their day-to-day lives to shuttle their kids to soccer or hockey practice, are subject to the tax. As a result, we are encouraging BC’s Finance Minister revisit the threshold and if they are going to maintain a luxury tax, ensure it’s only applied to high-end purchases as it is intended – without penalizing working families.
As we have raised this issue, I have been asked in different quarters what accounts for the current cost of a new vehicle. The short answer is that we are largely paying for the significant investment that auto makers have made in innovation and technology, much of which has significantly improved vehicle safety.
Where previous generations offered passive protection like seatbelts, today’s industry has moved to active prevention features that in many ways helps drivers avoid accidents – just some of which include:
1. Advanced Driver Assistance Systems (ADAS)
- Automatic Emergency Braking (AEB): Detects an imminent collision and automatically applies the brakes.
- Lane Departure Warning (LDW) and Lane Keeping Assist (LKA): Alerts the driver if the vehicle drifts out of its lane and can steer it back.
- Blind Spot Monitoring (BSM): Alerts drivers of vehicles in adjacent lanes that might not be visible.
- Adaptive Cruise Control (ACC): Maintains a safe distance from the car ahead by automatically adjusting speed.
2. Collision Avoidance and Mitigation
- Forward Collision Warning (FCW): Warns drivers of an impending collision.
- Rear Cross-Traffic Alert (RCTA): Detects traffic approaching from the side when reversing.
- Pedestrian and Cyclist Detection: Uses sensors and cameras to detect people and can apply brakes if needed.
3. Enhanced Visibility and Awareness
- Surround-View Cameras (360-degree): Provide a bird’s-eye view for easier parking and maneuvering.
- Night Vision: Uses infrared to detect pedestrians and animals beyond the reach of headlights.
- Head-Up Displays (HUDs): Project key info like speed and navigation onto the windshield to reduce driver distraction.
4. Structural and Airbag Innovations
- Crash-Optimized Frames: Designed with crumple zones that absorb energy during collisions.
- Advanced Airbag Systems: Include side, knee, and curtain airbags that deploy strategically depending on the impact.
- Pre-Tensioning Seatbelts: Tighten automatically in anticipation of a collision.
Aside from technology-led safety features, there are many other reasons that today’s vehicles have been described as computers on wheels – including advanced electronics and software, Infotainment options, customization and climate control, to improved engine and battery technology.
Clearly, innovation in modern vehicles is beneficial for several key reasons, all of which improve the driving experience, safety, and sustainability of transportation – but it doesn’t happen without a significant investment and commitment from auto industry.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
