PST impact on new vehicle sales in Saskatchewan

Posted by Paul Martin on Jun 16, 2017 11:19:05 AM

Changes to the PST contained in the Saskatchewan budget caused consumers to rethink their buying decisions when it came to new cars.

auto-car-travel-highway-automobiles.jpegBefore the tax change, the value of a used vehicle being traded in was deducted from the cost of a new one for calculating PST. The deduction was eliminated in the spring budget, a move expected to generate an additional $17 million for the government.

The change came into effect April 1, prompting some buyers to make their move in March – effectively demand was pulled forward as people tried to beat the tax.

And, as expected, April sales at motor vehicle dealerships slipped as consumers took a step back. Roughly 700 fewer units left dealer lots in April compared to March. Yet, the total was better than in the same month a year ago so the overall market appears to be growing despite the tinkering with the tax system.

The big reduction in volume came on the truck side with nearly 800 fewer units being purchased in April when compared to March. Interestingly, the number of passenger cars actually went up.

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Paul Martin

Written by Paul Martin

Paul Martin is the chair of Martin Charlton Communications. You’ve heard him on the radio, seen him on TV and read him in newspapers and magazines. Paul is a popular keynote speaker on topics ranging from the economy to tapping community potential. His unique blend of communication and business knowledge has made him a highly sought-after consultant. As the Chair of Martin Charlton Communications, Paul is MCC’s ‘go to’ guy for all things business in Saskatchewan. He is the chair of four Saskatchewan branches of TEC (The Executive Committee) – a global organization dedicated to improving the performance and enhancing the lives of CEOs – which has more than 50 CEOs and senior executives among its Saskatchewan members. The long and short: Paul knows the province’s corporate community and business economy like few others. He is a potent conduit for anyone looking to do business in Saskatchewan, Canada’s fastest growing economy. His strategic advice is unrivaled.


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