Government Files is The Canada Report’s public-records analysis series examining government documents obtained through Canada’s Access to Information (ATI) and provincial Freedom of Information (FOI) laws. These transparency laws allow members of the public to request internal government records from federal and provincial institutions. This article reviews documents released through those processes and summarizes what the records contain and what they show. While we strive for accuracy, this article represents an analysis and interpretation of the source material. For complete accuracy and full context, readers should review the original documents, which are available in full below.
Full Document
The complete document is available for download below:
British Columbians are conducting far fewer private vehicle sales than they were four years ago, yet the provincial government is collecting substantially more tax revenue from these transactions. New data from the BC Ministry of Finance reveals a striking pattern: as the volume of person-to-person vehicle sales declined by over 87,000 transactions between 2021 and 2023, Provincial Sales Tax revenue from these same transactions increased by nearly $27 million.
The numbers paint a clear picture of a used vehicle market where prices are climbing faster than sales are falling. While fewer people are buying and selling vehicles privately, those who are making these transactions are dealing with significantly higher dollar values.
A Market in Decline
The data shows private motor vehicle transfers in British Columbia peaked in 2021 at 425,210 transactions before beginning a steady decline. By 2023, the number had fallen to 339,137 transfers—a drop of 86,073 transactions, or 20.2 percent, in just two years. The decline continued into 2024, which recorded 338,063 private sales, virtually flat with 2023 levels.
These figures represent transfers between individuals, excluding dealership sales, and include vehicles brought into BC from other provinces. The pattern suggests a cooling in the private vehicle market that began in 2022 and has persisted through to 2025. Through the first eight months of 2025, BC recorded 245,043 private vehicle transfers, putting the year on track for annual totals similar to 2023 and 2024.
The decline from the 2021 peak is particularly notable given that 2020—the first year of the COVID-19 pandemic—saw 402,006 transfers. The 2021 surge may have represented pent-up demand or pandemic-era market dynamics, but the subsequent years suggest a return to lower baseline activity that has remained relatively stable.
The decline in private vehicle sales in British Columbia raises questions about consumer behaviour and economic trends, particularly in light of previous reports on vehicle-related penalties, such as those detailed in CBSA records on drug smuggling penalties. Understanding these dynamics can provide deeper insights into the province's shifting tax revenue landscape.
Want future Government Files like this?
We release new Canadian public-records breakdowns weekly.
Rising Revenue from Falling Volume
What makes this decline particularly interesting is what happened to tax revenue over the same period. Despite the sharp drop in transaction volume, PST revenue from private vehicle sales increased substantially. In 2021, when BC recorded its highest number of private vehicle transfers, the province collected $236.9 million in PST. By 2023, even with 20 percent fewer transactions, PST revenue had climbed to $263.9 million—an increase of $27 million, or 11.4 percent.
The revenue peaked in 2023 at $263.9 million before declining slightly to $256.1 million in 2024. However, even this 2024 figure represents $19.2 million more than the 2021 total, despite roughly 87,000 fewer transactions. The first eight months of 2025 generated $169.5 million in PST revenue from 245,043 transfers.
Over the entire period from 2020 through August 2025, British Columbia collected $1.36 billion in Provincial Sales Tax from 2.12 million private motor vehicle transfers.
What the Numbers Reveal About Prices
The divergence between transaction volume and tax revenue points directly to one factor: vehicle prices. To understand the magnitude of this shift, examining the average PST collected per transaction provides insight into how values have changed.
In 2020, the average PST collected per private vehicle transfer was $460. By 2023, that figure had climbed to $778—a 69 percent increase in just three years. Even accounting for the slight decline in 2024 to $758 per transaction, the average PST collected remains 65 percent higher than it was in 2020.
These averages represent the tax collected across all private vehicle sales, which include everything from older economy cars to newer luxury vehicles and trucks. The steady increase in average PST per transaction indicates that either the mix of vehicles being sold privately has shifted toward higher-value models, or prices across the board have increased substantially, or both factors are at play.
The 2021 Anomaly
The year 2021 stands out in the data for having both the highest number of transfers and a dramatic jump in PST revenue compared to 2020. Transfers increased by 5.8 percent from 2020 to 2021, but PST revenue jumped by 28 percent—from $185 million to $237 million. The average PST per transaction rose from $460 to $557, a 21 percent increase in a single year.
This suggests 2021 was a turning point year where both market activity and vehicle values surged simultaneously. Various factors likely contributed to this spike, including pandemic-era supply chain disruptions that limited new vehicle inventory, shifting transportation preferences, and economic stimulus measures that may have increased purchasing power. Whatever the causes, 2021 appears to have been the high-water mark for private vehicle market activity in BC, though not for the tax revenue these transactions generated.
Recent Trends and Market Stability
After the sharp corrections in 2022, the market appears to have found a new equilibrium. Transaction volumes for 2023 and 2024 were nearly identical at 339,137 and 338,063 respectively. Revenue figures also stabilized, though at a much higher level than the pre-2022 period. The 2024 revenue of $256.1 million was slightly below 2023's peak of $263.9 million but well above earlier years.
The 2025 partial-year data suggests this pattern is continuing. Through August, the province was on pace to record roughly 367,500 annual transfers if the monthly average holds, which would be slightly above 2023-2024 levels. However, vehicle sales often show seasonal variation, so the final 2025 figures remain to be seen.
What This Means for British Columbians
For individuals buying or selling vehicles privately in BC, these numbers reflect what many have experienced firsthand: used vehicles cost substantially more than they did several years ago. The data quantifies this widely observed trend, showing that even as fewer people engage in private vehicle sales, those who do are transacting at significantly higher values.
The declining transaction volume could indicate several market dynamics at work. Higher prices may be keeping some potential buyers out of the market entirely. Alternatively, people may be holding onto their vehicles longer rather than trading them in the private market. Economic uncertainty or changing preferences around vehicle ownership could also be factors reducing the number of private sales.
From a government revenue perspective, the data demonstrates that PST collections from private vehicle sales have proven relatively resilient despite the declining transaction volume. The revenue loss from fewer sales has been more than offset by the increased value of the transactions that do occur.
The recent decline in private vehicle sales in British Columbia comes amid a broader discussion about the province's fiscal health, particularly in light of the BC Budget 2026, which includes increased income taxes to address a significant debt. This juxtaposition raises questions about the impact of tax policies on consumer behaviour and economic activity.
What the Data Doesn't Show
The Ministry of Finance figures provide transaction counts and tax revenue but don't include several details that would offer additional context. The data doesn't break down sales by vehicle type, age, or value category, so it's not possible to determine whether the rising tax revenue comes from an overall increase in used vehicle prices or from a shift in the composition of vehicles being sold privately—for example, more newer or luxury vehicles changing hands outside dealerships.
The records also don't indicate how many of the transactions involved vehicles transferred into BC from other provinces versus sales between BC residents, though both categories are included in the totals. Geographic distribution within the province is not provided, so urban versus rural market patterns cannot be determined from these figures alone.
Additionally, while the data captures private sales, it doesn't include dealership transactions, which would provide a more complete picture of the overall used vehicle market in British Columbia.
Broader Context
The patterns visible in BC's data likely reflect broader trends affecting used vehicle markets across North America. The COVID-19 pandemic disrupted automotive supply chains, limiting new vehicle production and driving buyers toward the used market. This increased demand, combined with constrained supply, pushed used vehicle prices upward beginning in 2021.
While new vehicle production has largely recovered, used vehicle prices have remained elevated compared to pre-pandemic levels in many markets. The BC data aligns with this broader narrative, showing peak activity in 2021 followed by fewer transactions at higher average values in subsequent years.
The stabilization visible in 2023-2024 may indicate the market has absorbed the initial shock of pandemic-era disruptions and is settling into new pricing norms, even as transaction volumes remain below the 2021 peak.
Support Public-Records Analysis
This analysis is based on government records released under access-to-information laws. If this breakdown was useful, you can support future Government Files work with a one-time tip.
Support Government FilesAll figures referenced are from BC Ministry of Finance, request number FIN-2025-51925, obtained through Freedom of Information requests. The records contain Provincial Sales Tax revenue and transaction counts for private motor vehicle sales in British Columbia from 2020 through August 2025.
