By Blair Qualey
This week, the New Car Dealers Association of BC (NCDA) hosted its annual DAY AT THE LEGISLATURE where some of the most popular and innovative vehicle models were on display – providing MLAs on both sides of the aisle to speak with dealers about the latest features and innovations.
However, this year’s event took on a serious tone and we are appreciative of the time provided by the Honourable Adrian Dix, Minister of Energy and Climate – his understanding of the challenges, and his commitment to continue to work in partnership with our sector.
It’s no secret that the new car industry faces uncertain times because of the actions of our closest neighbour to the south – and it’s having an impact on every sector of the economy, including ours.
This week, we emphasized to provincial government officials, including Minister Dix that levers at their disposal will support consumers, our sector, jobs, and the economy.
Many of the vehicles on display at the legislature this week were affixed with signage with the following caption: ‘Do I look like a luxury vehicle?’ The point was to highlight
that BC’s Luxury Tax threshold hasn’t been adjusted for many years and doesn’t reflect today’s reality. The tax kicks in at $55,000 – when the average cost of a new vehicle now exceeds $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. We are encouraging BC’s Finance Minister to apply the luxury tax to high-end purchases as it is intended – without penalizing working families.
Cost is always a factor when considering the purchase of a new zero emission vehicle. And while the province has placed the CleanBC Go Electric Vehicle Rebate Program on ‘pause’ – we are proud to have administered the program since its inception in 2011. More than 109,000 rebate applications have been processed including a record 25,000 last year. The program has helped place BC in a leadership position in zero emission vehicle sales and we look forward to continuing our partnership in whatever form it may involve moving forward, through rebates or another form of incentive.
Without market support for zero emission vehicles, the ability for government to reach its mandatory ZEV sales targets (90% of all light vehicles sold by 2030 / 100% by 2035) is simply not possible. As a result, we are encouraging the province to put the brakes on the policy and its enforcement provisions. Without intervention, automakers face a $20,000 penalty for every vehicle falling under the quota – and those costs will undoubtedly be passed onto the consumer.
The DAY AT THE LEGISLATURE coincides with the yearly gathering of industry leaders, policymakers, and stakeholders to acknowledge progress and discuss challenges within the sector. In doing so, we marked the official transition of our first ever female chair, Ann Marie Clark from Nanaimo to her successor, Jared Williams from the Kootenays.
I am incredibly fortunate to be surrounded by dealers and board members who are dedicated and passionate – and want to acknowledge their commitment which is key to the future success of the sector, our province and the communities in which they operate.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
