Hyundai Canada appears to be the first auto maker off the starting line to take advantage of the federal government’s one per cent cut in the Goods and Services Tax to 6 per cent.
While the new GST rate doesn’t take affect until July 1, beginning May 5, 2006, Hyundai dealers across Canada will be offering new vehicle buyers the cash equivalent of the 1% GST reduction upon closing. Because new vehicle buyers are obliged to pay the full amount of the tax at the time of purchase, Hyundai dealers will reimburse the 1% tax in cash or the equivalent discount.
Hyundai anticipates other auto manufacturers will offer similar initiatives.
Director of marketing, Peter Renz, says the proactive measure is to ensure that Hyundai sales, which enjoyed an 11 per cent jump last year, stay on an upward trend.