Canada's new EV Affordability Program

electriceddy

electriceddy

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Not sure when it is starting, but this new $5K rebate should help spice up EV sales in Canada.
It will be interesting to see how the $50K cap will reflect on the existing prices- will the manufactures that qualify lower prices on some trims?
Will it entice more free trade agreements and incentive Countries to set up manufacture plants here in Canada to allow for the elimination of the price cap?

www.pm.gc.ca

Prime Minister Carney launches new strategy to transform Canada’s auto industry

The world is changing rapidly, fundamentally reshaping trade relationships and leaving economies, businesses, and workers under a cloud of uncertainty.
www.pm.gc.ca www.pm.gc.ca
 
It's a $5k EV rebate in 2026 that slowly goes down $1k per year and the PHEV rebate will drop $500 per year. As for the $50k price cap, it's my understanding that it's the final transaction price before sales taxes, and EVs made in Canada are not subject to the $50k cap. The lower trim and Lexus PHEV $20k option package loophole is not going to work this time.

In the mean time, BYD can setup a few factories in Canada.
 
I would have preferred to see the rebate only apply to first time EV buyers, like CA is planning. That would increase the number of people owning EVs. And as we know, once you own an EV, you don't want to go back to ICE.
 
Looks like Kona EV made the EVAP eligibility list, in all trims (N-Line has been discontinued)

EVAP Vehicle List

tc.canada.ca tc.canada.ca
Starts April 2/2026:)
Also surprisingly Equinox LT AWD, Mach-e (e-AWD standard range) ,Toyota bZ FWD and of course Bolt.
Kind of funny rule requirement: "have at least 4 functioning wheels" - I guess that would leave Aptera prospective buyers high and dry.
"The dealership is responsible for having you fill out the Consumer Consent Form and Attestation Form and submitting them to Transport Canada."
"participating dealerships agree to lower the purchase or lease price of eligible EVs and apply to the EVAP for a grant on behalf of the purchaser or lessee."
 
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The base Solterra can make it with some manufacturer rebates and dealer discounts. It's kind of dumb because you can fudge the financing and lease interest rate. Better yet, make it a subscription model and do lease only.
 
What's different than the first Canada rebate program, is that the final transaction price after all manufacturer and dealer discounts have to be $50K or less. So even if the car is not on the list, it can still qualify. I like this a lot more, as prices come down, more cars can qualify.

I wonder how it works with trade-ins. Dealers can provide bigger discounts off MSRP, but then give you less for you trade-in.
 
Trade-ins and deposits don't count towards lowering the $50k. It's only for Canadian made EVs or countries with a free-trade agreement..G7, EU, South Korea, etc.
 
teslarati97 said:
Trade-ins and deposits don't count towards lowering the $50k. It's only for Canadian made EVs or countries with a free-trade agreement..G7, EU, South Korea, etc.
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Yes, but if the dealer pays less for the trade-in he can afford to give a bigger discount to lower the transaction amount to make it eligible for the rebate.
 
R P said:
Yes, but if the dealer pays less for the trade-in he can afford to give a bigger discount to lower the transaction amount to make it eligible for the rebate.
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Nice try, but it has been thought of:


Table 1: Examples of inclusions and exclusions


Exclusion : vehicle trade-in

Inclusions: (inclusive of any manufacturer or dealership incentives or discounts)

I read it as a dealer discount not to include any vehicle trade in the final transaction value, the dealer could certainly afford it by manipulation but most likely be denied the federal rebate reimbursement.
 
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Yes, a trade-in can't reduce your transaction cost that is eligible for the rebate. But what is stopping the dealer from giving you a lower trade-in amount and a higher discount off MSRP? I suppose the govt can question it if the trade-in amount is far less than market value for that used vehicle.
 
R P said:
giving you a lower trade-in amount and a higher discount off MSRP?
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Substitute "and" with "in exchange for"
Not something I personally would like to be on the hook for, but I guess the only way to find out is to approach the dealer and ask.

Transport Canada will closely monitor how incentives are used. If we believe that a person or business:
  • gave false or misleading information
  • then that person or business must pay back the dealership(s) that gave them the incentive(s). The person or business also agrees that the dealership(s) can take steps to get the money back.
 
Well, I'm not looking for a new car, at least not for a while. But it was interesting they took this "transaction" threshold approach instead of straight MSRP like before. I do wonder though if it might lead to some manipulation by dealers to get that rebate for customers.
 
Yeah totally possible if the dealer separates the trade-in from the new vehicle purchase. The purchaser would have to give up the sales tax offset.

Just wait until you see the $10,000 freight + PDI charges and $10,000 financing fee to make the $30k EV possible.
 
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