Where's the price cap in snowmobiling?

[papajake]

No different than someone who buys a 200 thousand toy hauler and use it 2weeks a year and then pay 100 plus a month to store it the problem i have is it sits doing nothing while i still have to make payments

 

[catalac]

Wow wasn’t in the know on the new rzr. 2L 225hp $47,000 wow… would be fun I’m sure, especially when someone releases a turbo kit for it. edit… ok with the desert package gst included $63,700 only $1065 plus gst a month 72 months 7.5% interest.

Total commitment if financed $79,423!!

 

[SHREK1]

Easy to spend 40k on a side by side, the ew stuff checks off most boxes that people would typically upgrade

 

[neilsleder]

Wow wasn’t in the know on the new rzr. 2L 225hp $47,000 wow… would be fun I’m sure, especially when someone releases a turbo kit for it. edit… ok with the desert package gst included $63,700 only $1065 plus gst a month 72 months 7.5% interest.

Total commitment if financed $79,423!!

View attachment 248110

View attachment 248109

Gross! That’s a mortgage payment almost!

 

[tmo1620]

Gross! That’s a mortgage payment almost!

On a 1 bedroom apartment condo in a shitty neighborhood

 

[neilsleder]

On a 1 bedroom apartment condo in a shitty neighborhood

Lol yah not on the nicest place that’s for sure! But I’d rather make a 1100 a month mortgage payment than a sxs payment.

 

[tmo1620]

Lol yah not on the nicest place that’s for sure! But I’d rather make a 1100 a month mortgage payment than a sxs payment.

Ya that much is true

 

[Modman]

Gross! That’s a mortgage payment almost!

My mortgage payment is actually less than that. $1000 a month for a 5 yr old walk out basement, 2100 sq ft with 28x30 detached 3 car garage. 20 yr term with 12 left to go because I make extra payments.

 

[Modman]

Nobody has brought up the fact that since 2020, sleds aren't depreciating as much. The guys are asking more for the used turbo's than i'm paying for new. (Unfortunately I don't have the F$%king thing yet). Now if you finance or not, buying a sled for $18,750 OTD (2020 expert 165) and riding is for 2 years and putting 2500km on it then it still selling for $16,500 is pretty decent. I have a pretty hard time paying $16,500 for a sled that is going onto it 3rd season when you could have been riding new for an extra $2500ish (or $41.00/month . In the past it seemed like you were out $2000 the minute it had 500km on it.

The only reason they are "holding" value better is due to COVID and the limited number of new units and all the newbs who are using their disposable income for toys instead of lunches out at the office and that so many people are bored to tears sitting at home. And....I will argue that they are not "holding" their value so much as its simply what is owed on them now - manufacturers are propping up the used prices with long terms and low monthly payments. There will be a shift in a couple years time when all the novelty has worn off and many bandwagonners are going back to Puerto Vajarta every winter and inventory rises. Travel spending in spring 2021 was 11% of what it normally is. No cars on the lots means people aren't buying and therefore do not have a $500 to $1,000 a month payment right now. Once inventory comes back and they want to replace that vehicle, they will have to lower their monthly payments to get approved. You can finance anything and many people's payments will catch up with them. Financing is getting stupid - looking at the Canadian Tire Flyer the other day and they are offering financing on a floor jack - something like $7.71 / month for 24 months. I just LOL'd - if you can't afford to buy a floor jack outright, then you should probably get a handle on your finances.

The short answer is - the cap will be set when things change and its no longer affordable for each person. For me the cap was when sleds became more than cars. You can go buy a KIA for $15K and it will last 20 years and 250K. Some guys will always be willing to give up something to justify spending on a sled. Got a buddy who drives his dad's hand-me-down 1989 pickup...........but he has a brand new sled.

The long answer is - The world is a big house of cards right now. People are adding to their debt load everyday and they don't even know it. There's a current lobby in to push vehicle payment terms to 120 months (yes - 10 YEARS!) because that's the only way people can afford a $100K pick up. Think about still paying for a vehicle for 6 years AFTER its off warranty. In Canada that means you will still have a loan on a vehicle that has body rust and needs major service. Biggest profit maker right now is service - people are keeping and fixing their cars because they simply can't get a new one. That will change again in 2-3 years time when inventory picks up again and they are offering 0% financing and dealer incentives. Or maybe it wont because vehicles will still be out of reach for many. I don't know what will happen but I do know that people need a car a lot more than a sled or a quad.

Before Greece had a debt crisis, the government enacted 12 rounds of tax increases in 5 years. Their debt to GDP Ratio was 127% at the beginning. Canada's was 117% in 2020. Last time we saw ratios this high was after WW2. Many people forget that Canada's COVID deficit has been more than any other developed country - we are projected to hit around $1.6 trillion by 2022. Huge debt weakens our dollar, meaning anything imported now ultimately costs more and taxes will have to go up to cover it. Life in general will get more expensive and wages will not be able to rise at the same pace. "Justinflation" will start to cripple this country even worse, as we are in a 20 yr spike but the Liberals killed industry and instead have been printing money 24/7 instead to compensate. We can't simply be a country that makes nothing and consumes everything. This will hit home for many people in 2022 as the price of natural gas rises for heating and food costs grow among many others. Interest rates will have to rise to combat inflation but JT doesn't promote monetary policy, so he's hoping things will fix themselves. Eventually though, something will have to be done, and no amount of virtue signalling will stop it. I know this seems like a rant but its not, its just facts. I'm a pretty easy going guy, but the last little while has shown me that we all need to be concerned for the next generation of Canada. Not many people thinking big picture. https://www.debtclock.ca/

 

[Caper11]

I haven’t been able to find out if trucks are going to be included in the luxury tax system. That will add another 10g+ to a new truck if the Govt does that January 1.

 

[LUCKY 7]

The only reason they are "holding" value better is due to COVID and the limited number of new units and all the newbs who are using their disposable income for toys instead of lunches out at the office and that so many people are bored to tears sitting at home. And....I will argue that they are not "holding" their value so much as its simply what is owed on them now - manufacturers are propping up the used prices with long terms and low monthly payments. There will be a shift in a couple years time when all the novelty has worn off and many bandwagonners are going back to Puerto Vajarta every winter and inventory rises. Travel spending in spring 2021 was 11% of what it normally is. No cars on the lots means people aren't buying and therefore do not have a $500 to $1,000 a month payment right now. Once inventory comes back and they want to replace that vehicle, they will have to lower their monthly payments to get approved. You can finance anything and many people's payments will catch up with them. Financing is getting stupid - looking at the Canadian Tire Flyer the other day and they are offering financing on a floor jack - something like $7.71 / month for 24 months. I just LOL'd - if you can't afford to buy a floor jack outright, then you should probably get a handle on your finances.

The short answer is - the cap will be set when things change and its no longer affordable for each person. For me the cap was when sleds became more than cars. You can go buy a KIA for $15K and it will last 20 years and 250K. Some guys will always be willing to give up something to justify spending on a sled. Got a buddy who drives his dad's hand-me-down 1989 pickup...........but he has a brand new sled.

The long answer is - The world is a big house of cards right now. People are adding to their debt load everyday and they don't even know it. There's a current lobby in to push vehicle payment terms to 120 months (yes - 10 YEARS!) because that's the only way people can afford a $100K pick up. Think about still paying for a vehicle for 6 years AFTER its off warranty. In Canada that means you will still have a loan on a vehicle that has body rust and needs major service. Biggest profit maker right now is service - people are keeping and fixing their cars because they simply can't get a new one. That will change again in 2-3 years time when inventory picks up again and they are offering 0% financing and dealer incentives. Or maybe it wont because vehicles will still be out of reach for many. I don't know what will happen but I do know that people need a car a lot more than a sled or a quad.

Before Greece had a debt crisis, the government enacted 12 rounds of tax increases in 5 years. Their debt to GDP Ratio was 127% at the beginning. Canada's was 117% in 2020. Last time we saw ratios this high was after WW2. Many people forget that Canada's COVID deficit has been more than any other developed country - we are projected to hit around $1.6 trillion by 2022. Huge debt weakens our dollar, meaning anything imported now ultimately costs more and taxes will have to go up to cover it. Life in general will get more expensive and wages will not be able to rise at the same pace. "Justinflation" will start to cripple this country even worse, as we are in a 20 yr spike but the Liberals killed industry and instead have been printing money 24/7 instead to compensate. We can't simply be a country that makes nothing and consumes everything. This will hit home for many people in 2022 as the price of natural gas rises for heating and food costs grow among many others. Interest rates will have to rise to combat inflation but JT doesn't promote monetary policy, so he's hoping things will fix themselves. Eventually though, something will have to be done, and no amount of virtue signalling will stop it. I know this seems like a rant but its not, its just facts. I'm a pretty easy going guy, but the last little while has shown me that we all need to be concerned for the next generation of Canada. Not many people thinking big picture. https://www.debtclock.ca/

every word you said is true

 

[kanedog]

My mortgage payment is actually less than that. $1000 a month for a 5 yr old walk out basement, 2100 sq ft with 28x30 detached 3 car garage. 20 yr term with 12 left to go because I make extra payments.

But you live in the abandoned, depressed town of Castlegar. To each their own, Haha

 

[ABMax24]

I haven’t been able to find out if trucks are going to be included in the luxury tax system. That will add another 10g+ to a new truck if the Govt does that January 1.

That's not the way I read that.

The lesser of 20% of the value exceeding $100k or 10% of the total value. Assuming the value is over $100k.

So a $100k vehicle would pay 0 luxury tax. $125k would pay $5k. $150k would pay $10k.

Regardless, still another BS tax.

Also says "luxury cars" whatever that means. I wonder if a platinum is considered luxury, but an xlt wouldn't be?

 

[Caper11]

That's not the way I read that.

The lesser of 20% of the value exceeding $100k or 10% of the total value. Assuming the value is over $100k.

So a $100k vehicle would pay 0 luxury tax. $125k would pay $5k. $150k would pay $10k.

Regardless, still another BS tax.

Also says "luxury cars" whatever that means. I wonder if a platinum is considered luxury, but an xlt wouldn't be?

I noticed the luxury cars just now on the Govt website.

Consultation on the Select Luxury Goods Tax - Canada.ca

Consultation on the Select Luxury Goods Tax

www.canada.ca

I’m reading it different.

I’m reading as 20% above the threshold and 10% of the full value. Kinda like a compound income tax.
10% on the first 100k, 20% on the balance remaining past the threshold.
That’s on the sale price, not the MRSP and the sales tax will not affect the threshold.
So if a Truck is 110g and your deal get 15k off. Than the sale price is below the threshold of 100k.
I like your math better tho, I hope I’m wrong.
Since BC has a provincial luxury that they will be hit with a double tax like the carbon tax.

 

[FernieHawk]

I noticed the luxury cars just now on the Govt website.

Consultation on the Select Luxury Goods Tax - Canada.ca

Consultation on the Select Luxury Goods Tax

www.canada.ca

I’m reading it different.

I’m reading as 20% above the threshold and 10% of the full value. Kinda like a compound income tax.
10% on the first 100k, 20% on the balance remaining past the threshold.
That’s on the sale price, not the MRSP and the sales tax will not affect the threshold.
So if a Truck is 110g and your deal get 15k off. Than the sale price is below the threshold of 100k.
I like your math better tho, I hope I’m wrong.
Since BC has a provincial luxury that they will be hit with a double tax like the carbon tax.

You’re missing the part about the Lessor of the two taxes. They are not combined

Basically you would be paying a sliding scale on anything between 100 and 200K and 10% on the total value once you are above 200K

 

[lilduke]

If they are looking for ways to scare money out of the country they are doing a wonderful job!

 

[Caper11]

You’re missing the part about the Lessor of the two taxes. They are not combined

Basically you would be paying a sliding scale on anything between 100 and 200K and 20% on the total value once you are above 200K

Taken from the link I posted earlier.


The Luxury Tax would be calculated as follows:

for vehicles and aircraft priced over $100,000, at the lesser of 10% of the total price of the vehicle or the aircraft and 20% of the total price above $100,000; and
for boats priced over $250,000, at the lesser of 10% of the total price of the boat and 20% of the total price above $250,000.


Correct me please.
It says the lesser value of 10% of the total price, and 20% of the total above 100k, not or, and/or, as an option that can be selected when doing a deal?


I did find that pickups and snowmobiles race cars are included in this.

 

[FernieHawk]

Taken from the link I posted earlier.


The Luxury Tax would be calculated as follows:

for vehicles and aircraft priced over $100,000, at the lesser of 10% of the total price of the vehicle or the aircraft and 20% of the total price above $100,000; and
for boats priced over $250,000, at the lesser of 10% of the total price of the boat and 20% of the total price above $250,000.


Correct me please.
It says the lesser value of 10% of the total price, and 20% of the total above 100k, not or, and/or, as an option that can be selected when doing a deal?


I did find that pickups and snowmobiles race cars are included in this.

Basically it says make the two calculations and pay the lessor of the two calculations. This creates a sliding scale of tax not a compounding one.

On a $110,000 purchase the tax would be $2,000 or 1.8% of the total price paid.

On a $150,000 purchase the tax would be $10,000 or 6.6% of the total price paid.

On a $190,000 purchase the tax would be $18,000 or 9.5% of the total price paid.

On a $200,000 purchase the tax would be $20,000 or 10% of the total paid.

It looks to me that this formula tops out at 10% of the purchase price for purchase price of $200,000 and up.

The weather is shitty today so I have time for this while sitting inside watching the shitty weather outside. Lol.

 

[Caper11]

Basically it says make the two calculations and pay the lessor of the two calculations. This creates a sliding scale of tax not a compounding one.

On a $110,000 purchase the tax would be $2,000 or 1.8% of the total price paid.

On a $150,000 purchase the tax would be $10,000 or 6.6% of the total price paid.

On a $190,000 purchase the tax would be $18,000 or 9.5% of the total price paid.

On a $200,000 purchase the tax would be $20,000 or 10% of the total paid.

It looks to me that this formula tops out at 10% of the purchase price for purchase price of $200,000 and up.

The weather is shitty today so I have time for this while sitting inside watching the shitty weather outside. Lol.

If that’s how they are doing it, I want them to do that for Income tax. Lol
I wanna pay the lesser tax.

Is it raining or snowing there???

 

[kanedog]

If that’s how they are doing it, I want them to do that for Income tax. Lol
I wanna pay the lesser tax.

Is it raining or snowing there???

I’m Butting in the conversation but it rained 3.5” in 24 hours in Langley, BC. Fyi