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Canada's federal EV rebate pausing / ending soon!

3K views 20 replies 8 participants last post by  Andre YUL  
#1 ·
On January 10th, Transport Canada issued a press release announcing a Pause of the Incentives for Zero-Emission Vehicles Program.

It was scheduled to run until the end of March 2025 or until they ran out of funds. The program has been popular and will run out of money soon.

According to Electric Mobility Canada, there are only enough funds remaining for about 16,000 vehicles. That may last only a few weeks.

I don't know if the iZEV program will resume in April. Does Parliement need to pass a budget for it to be funded? Parliement is prorogued now and there will a new Liberal leader soon. Will the minority government be able to get support of an opposition party to pass a new budget before the election? After the election, if the Conservatives form the government, will there still be an iZEV program?

If you're deciding between a car in the dealer's inventory that's not your ideal color or a car that will arrive later, the car in inventory may be the less expensive choice because of the federal iZEV ($5,000) pause. You may have very little time to act. It's even more dramatic in Quebec, where the provincial incentive, recently reduced to $4,000, is also running out of money and will be paused as of February 1st.
 
#2 · (Edited)
I didn't want to lose the $12,000 tax rebate ($7,000 QC + $5,000 fed) when the sterling grey 2025 LT I ordered in late July which was built early September hadn't yet shipped at the end of October. I agreed to buy a white one with similar features (LT, AWD, commodity package 2, and Super Cruise) instead.

Today, I feel lucky that my dealer was able to find it and get it for me from another dealer. I really wanted a 2025 model with HUD and camera mirror.
 
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#3 ·
This link covers some questions on the timing of the federal program:


I don't think the government needs to pass a budget, which won't happen in time, after they return. But they will have to pass some piece of legislation to allocate addition funds within 1 week of returning.

When you consider that:
- the Liberals will have a new leader and will need to get a lot of things sorted out;
- the Liberals haven't been able to pass any legislation for months;
- the Liberals are backtracking on the carbon tax;
- the Conservative government in waiting has already said they will axe the program, and if it gets axed because of the Liberals, they won't have to take the blame;
- the NDP doesn't seem interested in keeping the Liberals in power;
- the Block financial demands for cooperation proving to be on the high side;

I would bet on the program ending now instead of after the next election.
 
#4 ·
I have a factory order since October. It still hasn't even been built so there is no way it will arrive before the EV rebate expires. So I don't have much of a choice: if I want to benefit from the rebate, I have to buy the car asap.
Thankfully I found a similar car available on the lot at another dealership. It's not the colour I original wanted but it has the options I was looking for (Convenient package I). I'm buying the car in a few hours! I hope everything goes well!

I suspect a lot of people will do the same and rush to buy an EV available on the lot.
 
#5 ·
Thanks @Danny Scott , for the FAQ. The answer to question 6 is especially interesting:

"If your dealership successfully submitted your eligibility assessment application and it was pre-approved, you will receive the incentive despite the Program pause, provided the new vehicle you are buying or leasing is on the Program’s eligible vehicles list."

The Quebec program requires registration of the vehicle. The federal apparently not. If you've ordered a vehicle, ask your dealer about the approval of your eligibility assessment application.
 
#10 ·
That's unfortunate and somewhat odd. The press release was 2 days ago and Electric Mobility Canada reported that funds for about 16,000 vehicles remained.

It's either a mistake or, since Friday, dealers with pending orders rushed to get thousands of approvals and used up all the remaining iZEV subsidies in 72 hours!
 
#7 ·
Not that it's any consolation, but with my 3 cars (Volt, Bolt EV, Equinox EV) I've never been able to take advantage of our state's rebate. It's always out of funds when I have bought.
 
#8 ·
How is it possible for 14,000 vehicles to be sold over less than 2 days though?! I am baffled.

I went to the dealership today thinking it was a good move to act "quickly". I thought I would get the rebate but I didn't. So I didn't buy the car. It sucks.
 
#9 ·
I feel for you. I consider myself lucky. I wasn't going to look for a new car until now but found one in December with the package I wanted. Saved me $10K.

If you have patience you have nothing to lose by waiting for the provincial rebate to come back, and possibly the federal rebate. If neither come back there will probably be GM incentives to move inventory.
 
#15 ·
let the free market run.
The free market that subsidizes oil and gas companies for example? Federal and state governments give special tax breaks, subsidies and loans to all sorts of businesses. It's only when the taxpayer gets something that some drag out this "free market" excuse for cutting the program. I'm not saying that's what you are doing, I think you are suggesting that automakers will need to struggle with their EV pricing to make up for the lack of a coherent EV industrial policy that would have a better chance competing against the highly subsidized Chinese industry.

The more roadblocks and delays thrown in the way, the harder it will be to compete against them.
 
#16 ·
Well battries are getting better, cost is reducing, companies are improving efficiency the prices will get back to oil/gas car range. All sort of businesses are subsadized, tax breaks which includes EV infra too. Evs used to be 60-70K when these subsidy started now they are in the lower price range already 50-60K$.
Rest i understand your point
 
#17 ·
Few people would argue that EV subsidies should exist forever. They are intended to nudge consumers to bridge a temporary until EVs drop in price and until the charging infrastructure improves. In Europe, Opel/Vauxhaul EVs have reached price parity with ICE models, but that's an exception, probably prompted by EV mandates.

I think the Quebec government has the right idea, but the wrong timing. They should have begun gradually reducing EV subsidies in perhaps 4 or 5 years instead of 2025.
 
#18 ·
in BC, the provincial rebate got restructured last year, and decreased the maximum MSRP that qualified.
too many vehicles qualified and too many $ being claimed.

So we missed out on $4000 by hairs.
but we still got the fed $5000.

but in the end it did what it intended, incentivized the market well, they sold too many cars.
 
#20 ·
So......Long story short: we bought the car on Wednesday!
At then end, the deal was even better than what we were going to pay last Sunday lol.

So last Sunday we were ready to buy the car (2LT FWD) but missed on the federal rebate. My wife and I decided not to purchase it.

Then Wednesday, Chevrolet Canada announced offering 5k$ off MSRP to offset the lost of the federal rebate. So we reconsidered the offer. Also, since it's before tax (unlike the federal rebate), we saved 600$ lol.
On top of that we got a 3k$ discount which you cannot get anymore. But since we received the voucher on Sunday and it's valid for some time, they were still able to give us the discount.
We also qualified for the 4k$ BC rebate. In total we saved 12k CAD.

The deal was too good to pass. We went to the dealership the same day and bought the car right away. We didn't want to miss another offer like that!

I present you, Light Fury!
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