The provincial budget last week introduced changes to how the provincial sales tax is handled on used light vehicles. Going forward, PST will be applied to all used vehicles valued at over $5,000. The value is based on what SGI calls Red Book prices, and may not reflect the cost actually paid for the vehicle.

For some, there was a concern as to how this could affect sales at dealerships, For one dealership in Weyburn, there appears to be a bit of a silver lining to the announced changes, as it balances out some of the costs.

Brad Pierson is the dealer-principal for Knight Dodge. He explained how the PST will be applied on trade-ins, it could benefit those looking to purchase a new vehicle. The PST will be applied to the cost of a new vehicle after the value of a trade-in has been factored into the final purchase price.

“I think it’s going to be positive in the sense of new vehicle sales, especially when there are high dollar trades,” explained Pierson. “That happens a lot in the case of people who run their vehicles for two to three years, especially when the price you’re seeing is so significant.”

The PST won’t be applied to a vehicle when it is gifted within a family, no matter the cost of the vehicle. The family exemptions include parents, grandparents, children, grandchildren and siblings.