So here is my scenario, I have a Milano Red fit LX on order and now with the reduction in the GST what would you do? Should I cancel and wait for the reduction? For me it's a difference of $180!

This is the way I see it. I'm waiting for my car anyways and by the time it arrives, I may only be 2 weeks from July when the new tax rate kicks in. I'm asuming a large shipment of fits are going to be in at the same time so I don't think the car will be that difficult to get by the time July rolls around.

I mean $180 could be the tints that I plan on getting, rust proffing, or all weather floor mats.

What would you do?

 

I'd personally wait.

I was in no rush to get the Fit when I bought it as I have my wife's car to drive if I need to.

It's all up to you. Is waiting another 2+ weeks worth approx $200 to you??

 

On the otherhand,I would predict a large spike in orders placed to arrive after Canada day,so the $180. is really a premium for early order fullfillment.
The Dealers still would rather keep their showrooms open untill July 1st so keep watching their ads for creative workarounds.

 

I won’t be waiting for mine. When it’s on the lot, ready to be picked up, I’ll be there. And they told me if it arrives in X month, it has to be picked up before the end of that month.

My way of telling Harper his 1% GST cut is BS. Cut my damn income tax! We buy so much stuff each month that is GST exempt, that 1% rebate won’t help us.

All you need is a dealer that won’t refund you your safety deposit and you lost more than you could save. Plus, they just changed the interest rates on the Fit. If you are financing/leasing, your current rate could be better.

 

After seeing that Honda is going to raise the rate by 1% it negates any advantage from the GST reduction. Heck, it will actually cost me more to refinance on the new rate compounded.

On a side note, I don't know of a dealer that can legally hold your deposit. Thankfully over here in Ontario the consumer protection act protects buyers and affords them the chance to back out of any transaction up to 10 days after a contract is written, provided you have in cancelled with written notice. In addition to that, the buyer has a right to cancel a contract if the good/services ordered were not recieved within 30 days.

I love that protection policy!

 

On the back of my purchase order, it stated 90 days before the contract can be cancelled if the car is not ready for pickup. Not sure if the Ontario 30 days would still take precidence.

 

If you take delivery after July 1st, you only have to pay 6% GST even if you order it before July 1st.

 

I would imagine that what is written on the back of your purchase order is actually not valid. The law explicitly states what your rights are. There is a good chance that the purchase order forms are older than the law that was passed. I believe the consumer protection act was only passed a few years ago (2002).

Here is the link:Ministry of Ontario CBS

 

Legally, a retailer is collecting GST on behalf of the government. It is, in effect, not the retailer's money and if it is collected after July 1st, only 6% should be collected.

The amount is owing to the government is calculated at time of sale. I expect that's when you take ownership/have the car registered in your name. It's not at time of deposit.

 

mwqa is correct

what you have right now is just an "agreement of purchase"

when you actually complete the sale and pay the money, you will get a "bill of sale" which indicates the gst amount

don't sweat the small stuff :-P

-joe