Money and financing
What a New Car Really Costs in B.C.: The Out-the-Door Price Explained
Out-the-door price in B.C., line by line: MSRP, freight and PDI, A/C and tire levies, doc fee, transaction levy, GST and tiered PST, with a worked example.
The sticker price is where a new-car deal starts, not where it ends. In B.C., the number you actually pay, the out-the-door price, adds freight, small government levies, a dealer fee or two, and then GST plus PST on top of the whole lot. This guide walks through each line so you can read any B.C. quote with confidence.
If you want the full buying process first, start with how to buy a car in B.C.. This post focuses only on the money.
Line 1: MSRP (vehicle price)
The manufacturer's suggested retail price for the trim, plus any options or packages. This is the line where a discount, if there is one, usually shows up. Compare it across dealers on the exact same trim using Price Compare.
Line 2: Freight & PDI
Freight covers shipping the car to the dealer; PDI (pre-delivery inspection) covers prepping it. It is set per model by the manufacturer and varies by vehicle, so do not assume one number fits every car. In practice it is rarely removed; see which dealer fees are negotiable.
Line 3: A/C and tire levies
Small charges tied to the air-conditioning system and the tires. Some brands show the federal A/C excise tax as its own line. These are not dealer profit and are not worth negotiating.
Line 4: Documentation (doc) fee
An admin fee the dealer sets itself. It varies from store to store, which is exactly why you compare totals, not just sticker prices.
Line 5: Dealer transaction levy
Some brands list a provincial transaction levy as part of their mandatory fees. If it appears, it should be a small, fixed line; ask what it is if you are unsure.
Line 6: GST (5%)
Federal GST is a flat 5%, charged on the vehicle price plus the fees above.
Line 7: B.C. PST (tiered by price)
When you buy or lease a passenger vehicle from a dealer (a GST registrant), B.C. PST is set by the vehicle's purchase price:
| Purchase price | PST (non-ZEV) |
|---|---|
| Less than $55,000 | 7% |
| $55,000 – $55,999.99 | 8% |
| $56,000 – $56,999.99 | 9% |
| $57,000 – $124,999.99 | 10% |
| $125,000 – $149,999.99 | 15% |
| $150,000 and over | 20% |
Zero-emission vehicles (battery-electric, hydrogen fuel-cell, and approved plug-in hybrids) use higher thresholds: 7% below $75,000, 8% from $75,000, 9% from $76,000, and 10% from $77,000, then the same 15% and 20% bands at $125,000 and $150,000. Regular hybrids are not ZEVs for PST.
The rate applies to the whole price, not just the part above the threshold. Crossing $55,000 by a dollar moves the entire purchase from 7% to 8% PST. Source: ICBC, PST on vehicles. Private sales are taxed differently; see the B.C. guide linked above.
Worked example (illustrative only)
The numbers below are hypothetical. They are round figures picked to show the math, not real prices, fees, or levy amounts for any vehicle or dealer.
| Line | Amount |
|---|---|
| MSRP (hypothetical) | $40,000 |
| Freight & PDI (hypothetical) | $2,000 |
| A/C levy (hypothetical) | $100 |
| Tire levy (hypothetical) | $25 |
| Doc fee (hypothetical) | $499 |
| Transaction levy (hypothetical) | $76 |
| Taxable subtotal | $42,700 |
| GST 5% | $2,135 |
| PST 7% (under $55,000, non-ZEV) | $2,989 |
| Out-the-door price | $47,824 |
So a car advertised at $40,000 ends up around $7,800 higher once fees and 12% combined tax are added. Note that the $2,700 in fees also attracts $324 of tax.
What changes near a threshold: if the same math produced a taxable subtotal of $55,000 on a gas car, PST would be 8% instead of 7%, about $550 more on the PST line alone. For a ZEV at that same price, PST would still be 7%.
Want to see what the total does to a monthly payment? Plug the out-the-door number into the loan calculator.
How to use this when shopping
- Ask every dealer for a written, itemized out-the-door quote. Our guide on how to read a dealer quote shows what each line should look like.
- Compare totals side by side, not monthly payments: see how to compare dealer quotes.
- Check current offers on Deals and compare models with our car comparison tool.
- Shopping in Metro Vancouver? See our Vancouver page and the Vancouver buying guide.
FAQ
What is the out-the-door price on a new car in B.C.?
The total you pay to drive away: vehicle price, freight and PDI, levies, dealer fees, plus 5% GST and B.C. PST on all of it.
How much tax do you pay on a new car in B.C.?
5% GST plus PST. For a passenger vehicle bought from a dealer, PST is 7% under $55,000 and rises to 8%, 9%, then 10% from $57,000, with 15% and 20% bands for vehicles at $125,000 and $150,000 and up.
Do electric cars pay less PST in B.C.?
Qualifying zero-emission vehicles get higher price thresholds, so 7% PST applies up to $74,999.99 instead of $54,999.99. Regular (non-plug-in) hybrids do not qualify.
Is tax charged on freight and dealer fees?
Yes. GST and PST apply to the fees as well as the vehicle price, which is why every fee costs a bit more than its face value.
Which of these fees can I negotiate?
Taxes and levies are fixed. Doc and admin fees vary by dealer. See which dealer fees are negotiable.
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