This month will officially bring in spring, which typically begins a very busy sales season for you all. There are some important things to note as you prepare for spring sales.
AMVIC has announced a fee increase effective April 1st that you will need to reflect on all documentation and digital platforms. Please ensure any and all templates, your bill of sale, advertisements, online calculators and any other documentation or publications are updated to reflect the AMVIC vehicle sales levy change to $10 by April 1, 2024. I have confirmed with AMVIC that the date on your bill of sale will determine which levy is due (pending deals will require the $10 charge if the Bill of Sales is dated April 1st or later). See the AMVIC notice for further information by clicking here.
On Thursday, February 29, the Province released its annual budget, and introduced a new tax on electric vehicles, effective January 1, 2025. The annual $200 tax will be paid when owners register their vehicles. The new tax won't apply to hybrid vehicles. It will take some time to understand specifically which models are subject to the new tax and which are not. The government says this is in lieu of the fuel tax that currently used to maintain roads.
January sales figures reflect a strong showing in Alberta, with sales up by 9.4%. There is concern among dealers around softness in showroom traffic and increasing used inventories.
I attended the CADA Summit in Toronto, which sold out and the Canadian International Auto Show, which set a record for attendance. Many great discussions on topics such as EV transition, AI integration and OEM Views from the Top. Much of the conversation was focused on the future and what challenges and opportunities await.
I met with Hon. Dale McNally, Minister of Service Alberta and Red Tape Reduction, in mid-February. He expressed his disappointment in recent media coverage around poor all-in pricing performance by dealers. We also discussed the need for EV charging infrastructure as this remains a significant barrier to EV ownership. I was happy to deliver the MDA Economic Report, and we spent some time discussing the tremendous impacts that new vehicle dealerships have on the province in terms of meaningful employment, job creation and economic activity. Dealerships are an important part of communities across the province, contributing to local charitable causes and supporting the places in which they do business.
A reminder that educational bursary applications close on March 31st. Please encourage interested staff to submit to take advantage of this educational support.
Finally, we recently made changes to our communication delivery, consolidating communiques to you rather than sending each individually. We produce weekly Training Updates on Thursdays, and send occasional Dealer Alerts on emerging topics. I would appreciate hearing from you about the effectiveness of these changes and any other comments you may have. As always, our commitment is to provide you with timely news and updates.