If buying a new car is on your to-do list this year, you may want to consider the financial support available from the federal government to help you make the purchase.
In 2021, the government introduced a new mandatory target that all new light-duty cars and passenger trucks sold in Canada must be zero-emission by 2035, which means investing in a greener vehicle could be a smart move.
In light of this upcoming ban on the sale of gas-powered cars — made in an effort to cut pollution levels and fight climate change – the government has introduced a number of incentives which could save you thousands of dollars on a zero-emission car.
From the iZEV program to provincial alternatives, here's a look at how you can benefit from government incentives and get money towards buying a new car in 2023.
Launched back in 2019, the federal government's iZEV program is designed to encourage Canadians to switch to greener cars by offering incentives of up to $5,000 towards the purchase or lease of eligible zero-emission vehicles.
To qualify, vehicles must meet the program's criteria, which defines zero-emission vehicles (ZEVs) as those that can be driven without producing polluting exhaust. This includes fully battery electric vehicles, plug-in hybrid electric vehicles, and hydrogen fuel cell electric vehicles.
The iZEV program has two tiers of incentives based on the type of zero-emission vehicle you're buying.
Battery electric vehicles, hydrogen fuel cell vehicles, and longer-range plug-in hybrid electric vehicles are eligible for the maximum incentive of $5,000, while shorter-range plug-in hybrid electric vehicles qualify for $2,500.
To be eligible, passenger cars must cost under $55,000, with some exceptions based on a vehicle's seating capacity and higher-priced alternatives.
The full list of qualifying vehicles can be found online.
If you purchase an eligible vehicle, the savings will be applied by the dealership at the point-of-sale, with the reduced amount reflected on your new car's bill of sale.
It is possible to make use of the iZEV program alongside similar provincial and territorial incentives too, so be sure to check if you qualify for any local programs before buying!
For example, B.C. offers a Go Electric program that offers passenger vehicle rebates on eligible cars, SUVs, trucks and vans.
Depending on income, qualifying residents of B.C. can get anywhere from $500 to $2,000 in rebates for plug-in hybrids with range less than 85 km, or up to $4,000 in rebates for battery electric and long-range plug-in hybrids.
Likewise, Quebecers may be eligible for rebates of up to $7,000 from the province on the purchase or lease of a new electric vehicle.
There's a full list of eligible vehicles and exactly how much you can get depends on the type of vehicle and conditions like its selling price, electric battery capacity, model year and more.
Newfoundland and Labrador offers something similar, where local drivers can get incentives up to $2,500 for qualifying electric vehicles.
New Brunswickers can also get some money off a new car if they purchase or lease a qualifying electric vehicle at a licensed automobile dealership. The rebates range from $1,000 through to $5,000 depending on the vehicle, with additional incentives for home charging stations, too.
If you're still not sure which incentives you could qualify for based on your location, the CAA has a handy online tool that shows all of the public and private incentive programs available in each province and territory. Easy!
This article's cover image was used for illustrative purposes only.