3. There are 6 simple steps to finding the cost of a used vehicle:
1) Cost of vehicle
2) Diagnostic test or repairs plus PST / GST.
3) PST on BOOK VALUE of vehicle.
4) Safety check (almost always $40 + GST).
5) Lien search (almost always $26 including tax)
6) Total of above 5.
4. EX You live in MB. You want to buy a used Ford Taurus from a private dealer, who is asking
$1560 for the vehicle. A lien search will cost $26. Since your are not a mechanic, you will
have to have a $35 diagnostic test done. Your mechanic tells you your car will need some
engine work and it will cost $450, including parts and labour. The book value of this vehicle is
$2100. You will also need a safety inspection. How much will the car cost you in total?
1) Cost of vehicle
$1560
2) Diagnostic test or repairs plus PST / GST.
(450 + 35) * 1.14 = $552.90
3) PST on BOOK VALUE of vehicle.
0.07 * 2100 = $147
4) Safety check (almost always $40 + GST).
40 * 1.07 = $42.80
5) Lien search (almost always $26 including tax)
$26
6) Total of above 5.
= 1560 + 552.90 + 147 + 42.80 + 26
= $2,328.70