[Jaws]

Just coming down right now. $2000 back for purchase of "fuel efficient" vehicles, and up to a $4000 penalty for an inefficient vehicle. I suspect all E9Xs will be neutral, but it will depend on how this is implemented. If this just based on overall economy, we should be good. If it is based on class, the 335xi is one of the least efficient compact vehicles.

edit: Here's the chart

Vehicle Efficiency Incentive (VEI) Structure


New Rebate

New Green Levy




Fuel Efficiency Cars Minivans, SUVs and Light Trucks Passenger Vehicles
(Other Than Trucks)
(L/100 km) (dollars)
5.5 or less 2,000 2,000
5.6 – 6.0 1,500 2,000
6.1 – 6.5 1,000 2,000
6.6 – 7.3 0 2,000
7.4 – 7.8 0 1,500
7.9 – 8.3 0 1,000
8.4 – 12.9 0 0
13.0 – 13.9 0 0 1,000
14.0 – 14.9 0 0 2,000
15.0 – 15.9 0 0 3,000
16.0 or more 0 0 4,000
1 Vehicle fuel efficiency is based on combined 55 per cent city/45 per cent highway fuel consumption ratings.

[ehhhwik]

Originally Posted by Jaws

Just coming down right now. $2000 back for purchase of "fuel efficient" vehicles, and up to a $4000 penalty for an inefficient vehicle. I suspect all E9Xs will be neutral, but it will depend on how this is implemented. If this just based on overall economy, we should be good. If it is based on class, the 335xi is one of the least efficient compact vehicles.

what is considered to be "efficient" and is not "ineffecient"?

[Jaws]

Originally Posted by ehhhwik

what is considered to be "efficient" and is not "ineffecient"?

I've posted the chart above, but it didn't turn out very well.

Basically, any car that gets 7.3 or better qualifies, and any truck, minivan or SUV that gets 8.3 or better qualifies. All vehicles, except trucks, that get worse than 13.0 get penalized.

It looks like all E9Xs are not affected.

[asdfaa]

the 335i gets 12.5 so it will get zero increase, just for laughs i looked at the X5 4.8i and it gets 15.9, so it will be penalized $3000, the M5 gets 19.9l /100km so it gets $4000, that kinda sucks.

[tirana]

It depends on the blended mileage based on 55% city, 45% highway. This may need some tinkering to get direct figures. The rebate/tax comes in as of tomorrow except for people who've already signed up to buy. Overall, this will have a negative effect on BMW (and all luxury/performance makers) although it won't be a big deal. The government will spend more than it takes in (by about $100 million a year). Might affect 20% of the cars BMW sells (until they bring in some sort of engine management system that squeezes under the limits) but I seriously doubt people who are buying an M5 will care *that* much about an extra 4K.... It'll likely have a much bigger deterrent effect on the cheaper, domestic guzzlers such as the 300C and Dodge Charger.

[Jaws]

Originally Posted by bg_27

the 335i gets 12.5 so it will get zero increase, just for laughs i looked at the X5 4.8i and it gets 15.9, so it will be penalized $3000, the M5 gets 19.9l /100km so it gets $4000, that kinda sucks.

The tax is based on 45% highway and 55% city, so if you combine the given Transport Canada ratings it may be not that bad. For example, if the M5 gets 10 L/100 km highway and 19.9 city, the tax would be based on 4.5 + 11 = 15.5 L/100 km.

[Jaws]

Originally Posted by tirana

It depends on the blended mileage based on 55% city, 45% highway. This may need some tinkering to get direct figures. The rebate/tax comes in as of tomorrow except for people who've already signed up to buy. Overall, this will have a negative effect on BMW (and all luxury makers) although it won't be a big deal. The government will spend more than it takes in (by about $100 million a year). Might affect 20% of the cars BMW sells (until they bring in some sort of engine management system that squeezes under the limits).

You beat my post.

[ehhhwik]

yea, this will let the car manufactures to make their cars more efficient and make BMW import diesel engines into their cars...

[findtom]

yay, more taxes!!!!

[ehhhwik]

i guess this rule only applies to new car buyers...

[Jaws]

Originally Posted by ehhhwik

i guess this rule only applies to new car buyers...

And cars that are still in dealer stock. The gov collects it from the car manufacturer, not the consumer. It will be interesting to see it the manufacturers build this into the price of the vehicle or add it as a line item after the customer has agreed to a purchase price.

[UP2NOGUD]

Vehicle: BMW - 335i COUPE Fuel Consumption

City: 12.5 L/100 km (23 mi./gal.) x .55 = 6.875
Hwy: 7.6 L/100 km (37 mi./gal.) x .45 = 4.18

Total Average Consumption = 11.055 L/100km...........under the the 13.0 L/100km so no refund and more importantly no penalty!



Links to the program and fuel economy rating for BMWs

http://www.budget.gc.ca/2007/bp/bpc3e.html

http://oee.nrcan.gc.ca/transportatio...lts.cfm?attr=8

[discoboy1]

The budget is only effective next year, is this correct?

[asdfaa]

budget in effect next year, but once passed the government can impose when this portion will go in effect, they could say June 1, or something

[bobbyz]

Dealer stock cars are not affected. On;ly cars that have not yet entered Canada yet. Also, all the documentation states March 20th as the start date for taxes and refunds...kinda strange since the budget is not even approved yet. I'm hoping for June 1 date because I have a Range Rover Sport on Order and although I have an offer to purchase, its just being built now so no VIN yet and lease agreemeent was subject to rates etc when car arrives so I assume another offer to lease will need to be made when car arrives.

[CaptChaos]

It looks like both the rebate and the levy take effect immediately.

To increase consumer purchases of more efficient advanced technology vehicles before the new fuel-efficiency standards take effect in 2011, Budget 2007 proposes a new Vehicle Efficiency Incentive (VEI) structure that will cover the full range of passenger vehicles available today. The VEI will have three distinct components and come into effect March 20, 2007:

The levy will apply to new vehicles delivered by a manufacturer or importer to a purchaser (usually a dealer) after March 19, 2007. Inventories of vehicles held by dealerships will not be subject to the new Green Levy. Certain consumer purchase contracts entered into before March 20, 2007, will also be grandfathered.

[bobbyz]

Yah, I read that too, but don't myou find it strange that the tax begins today even though it has not been officially approved yet?

[Snecro]

Originally Posted by bobbyz

Dealer stock cars are not affected. On;ly cars that have not yet entered Canada yet. Also, all the documentation states March 20th as the start date for taxes and refunds...kinda strange since the budget is not even approved yet. I'm hoping for June 1 date because I have a Range Rover Sport on Order and although I have an offer to purchase, its just being built now so no VIN yet and lease agreemeent was subject to rates etc when car arrives so I assume another offer to lease will need to be made when car arrives.

Originally Posted by bobbyz

Yah, I read that too, but don't myou find it strange that the tax begins today even though it has not been officially approved yet?

It is my understanding that budget changes are almost always effective from the date the budget was announced, regardless of the actual passing of the bill. When the bill is released, it is made retroactively to the budget announcement date. The policy behind this is that people would otherwise be able to change their behaviour in light of the proposed, but not yet implemented changes.

The exception to this practice was with the GST reduction last summer, which was given an advanced date, presumably because of the need to change the machinery associated with calculating the new amount.

[ehhhwik]

i think they actually have to pass the bill in order for the budget to go through, this bill usually gets passed a couple days after the budget has been released

thats what they said on cbc last night...

[tirana]

There is a possibility the budget will fail if the Bloc doesn't vote for it (as the Liberals and NDP have said they will vote against it). If so, there will be a Federal election. Right now, the BQ will support the budget motion (which comes after the debate in a few weeks - not days - time) but it may depend on the outcome of the Quebec provincial election.

Regardless, it seems likely that some sort of gas-guzzler tax is now ensured even though the taxes will have precious little effect on greenhouse gas emissions given that car emissions are only a fraction of vehicular emissions (e.g. pickup trucks and commercial vehicles are exempt). A bigger effect will be on a somewhat tempered demand for gas.

[aspiring335]

Seems like a really crude method of determining levies. It's lifestyle, not which car one drives, that determines environmental impact. Live out in the suburbs, buy lots of imported and heavily packaged food, fly a lot, and commute to work in a Toyota Prius and you're deemed to be doing the right thing. The guy who lives downtown in a condo and drives his Range Rover Sport 5,000 kms a year gets smacked in the face for polluting exponentially less.

[Snecro]

Originally Posted by tirana

Regardless, it seems likely that some sort of gas-guzzler tax is now ensured even though the taxes will have precious little effect on greenhouse gas emissions given that car emissions are only a fraction of vehicular emissions (e.g. pickup trucks and commercial vehicles are exempt). A bigger effect will be on a somewhat tempered demand for gas.

Originally Posted by aspiring335

Seems like a really crude method of determining levies. It's lifestyle, not which car one drives, that determines environmental impact. Live out in the suburbs, buy lots of imported and heavily packaged food, fly a lot, and commute to work in a Toyota Prius and you're deemed to be doing the right thing. The guy who lives downtown in a condo and drives his Range Rover Sport 5,000 kms a year gets smacked in the face for polluting exponentially less.

I agree with both of you.
And to add to the discussion, the most "environmental" thing one can do regarding passenger vehicles is to hang on to older cars. Some say that the production of cars (sorry, this is coming from an Environmental Studies/Land Use planning graduate), which includes the manufacturing of the plastics, oaring of metals, shipping of materials etc represents more life-cycle environmental harm than any tailpipe emissions of the vehicle once produced. In this light, the federal plans to provide incentives for purchasing fuel efficient vehicles may be environmentally counter-productive, since it may encourage people to buy more Priuses or get a new one more often.

anywho, had to get that off my political shoulder...sorry if I'm getting