Canada Government Increased Leasing Deduction Limit for First Time in 20 Years
The Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2022.
• The ceiling for capital cost allowances (CCA) for zero-emission passenger vehicles will be increased from $55,000 to $59,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2022.
• The ceiling for CCA for passenger vehicles will be increased from $30,000 to $34,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2022.
• Deductible leasing costs will be increased from $800 to $900 per month, before tax, for new leases entered into.
• The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by two cents to 61 cents per kilometre for the first 5,000 kilometres driven, and 55 cents for each additional kilometre. For the territories, the limit will also increase by two cents to 65 cents per kilometre for the first 5,000 kilometres driven, and 59 cents for each additional kilometre.
• The general prescribed rate used to determine the taxable benefit of employees relating to the personal portion of automobile expenses paid by their employers will be increased by two cents to 29 cents per kilometre. For people who are employed principally in selling or leasing automobiles, the rate used to determine the employee’s taxable benefit will be increased by two cents to 26 cents per kilometre.
These changes reflect recent increases in the Consumer Price Index (CPI). The maximum allowable interest deduction for new automobile loans will remain at $300 per month for 2022 as it continues to be appropriate to prevailing interest rates.
Jan 2022
Tesla Recalls 475k Vehicles
Tesla Inc. is recalling more than 475,000 of its Model 3 and Model S EVs. The EV maker is recalling 356,309 2017-2020 Model 3 vehicles to address rearview camera issues and 119,009 Model S vehicles due to front hood problems, the National Highway Traffic Safety Administration said.
Dec 2021
Ford Recalls 185k F-150s
Ford Motor Co. is recalling 184,698 F-150 vehicles from the 2021 and 2022 model years because the driveshaft, which transfers torque to other parts of the vehicle, may become fractured.
In a safety recall report filed with NHTSA, the automaker said heat and noise insulators on the underbody of the vehicle could loosen and make contact with the aluminum driveshaft, which could damage it.
“A compromised driveshaft could cause a loss of drive power and increase the risk of a crash,” Ford said. A broken driveshaft dragging on the ground may interfere with wheels turning properly, which could lead to a loss of vehicle control. Ford said dealers will inspect and repair the driveshaft if needed and fully attach underbody insulators. The automaker said owner notification letters were expected to be mailed Jan. 31st.
Dec 2021
Chevy Bolt Delayed Through February
General Motors said it is extending a production halt at its Orion Assembly plant in Michigan, which makes the Chevrolet Bolt EV, through the end of February.
The largest U.S. automaker in August widened its recall of the Bolt to more than 140,000 vehicles to replace battery modules after a series of fires. Earlier this month it extended its production shutdown through late January. GM has also indefinitely halted retail sales of new Bolt vehicles. The National Highway Traffic Safety Administration has an ongoing investigation into the battery fires. The agency noted in August that all Chevrolet Bolt EVs had been recalled due to the risk of the high-voltage battery pack catching fire.
Dec 2021
Stellantis Cuts Off 22MY Dodge Durango
Due to unprecedented demand, Stellantis Fleet must announce the early order cut off, effective Wednesday, December 8th, 2021, for the 22MY Dodge Durango.
Stellantis Fleet will attempt to accommodate all orders submitted on time, defined by your time zones order sweep, on Wednesday, December 8th 2021, however, cannot guarantee production nor offer price protection.
Dec 2021
Ford Recalls 125k Bronco Sport and Escapes
Ford Motor Co. is recalling approximately 125,000 Bronco Sport and Escape vehicles in North America over a defect with the rear brake linings that could affect braking performance.
The recall covers vehicles from the 2021-22 model years. The rear brake linings on those vehicles might have been manufactured incorrectly, and “during certain situations, the driver may have to apply more brake pedal force, and the distance required to stop the vehicle may be extended, increasing the risk of a crash,” the automaker said in a notice to U.S. auto safety regulators.
Dealers will be notified starting Jan. 3rd. Vehicle owners will be notified starting Jan. 10th.
Dec 2021
2022 Transit Connect Cutoff
Ford has announced that the final order cut off for the 2022MY Transit Connect Wagon will be 12/10. Orders need to be placed ASAP.
Used Vehicle Market
Wholesale prices rose to a new monthly record above $16,000 in October and have continued to exceed that threshold well into November. The average price of a vehicle sold at physical auctions is now more than $5,000 higher than this same time in pre-pandemic 2019. In addition to tight used vehicle supply and lack of new vehicle inventory due to the chip shortage, wholesale used vehicle values have benefitted from strong demand from rental companies that lack availability of new vehicles to place into fleet service.
Retail used vehicle sales improved in October, but CPO sales softened, perhaps due to late-model used vehicle supply limitations. According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in October averaged $16,318, up 5.0% compared to September, up 30.4% relative to October 2020, and up 46.5% compared to pre-COVID/October 2019. Prices rose for all model classes except compact pickups, which had a modest decline from high levels.
Based on NADA data, retail used vehicle sales by franchised and independent dealers in October were up 3.5% month-over-month and up 0.5% year-over-year. Year-to-date through October, sales are up 9.6% versus 2020 and up 1.5% compared to 2019/pre-pandemic levels.
October CPO sales were down 4.9% from the prior month and down 7.2% versus last year, according to figures from Autodata. On a year-to-date basis through October, CPO sales are up 8.5% compared to last year and up 1.8% versus 2019.
Nov 2021
Subaru’s Immediate Cut Off
Effective immediately Subaru will no longer be accepting Commercial Fleet orders. Subaru is still experiencing production reductions and do not want to be in a situation where they have to cancel accepted orders.
Additional Stellantis Early Cut Offs
Due to unprecedented demand, Stellantis Fleet has announced the early order cut off for the following models:
Stellantis Fleet will attempt to accommodate all orders placed by the above listed dates, however, cannot guarantee production nor offer price protection.
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