With climate change and rising gasoline prices dominating the news, an increasing number of Canadian drivers are thinking of going green with an electric vehicle. While the price tags of new EVs are typically higher than those of gasoline cars, going with a used electric vehicle can be an extremely affordable option to drive emission-free.
Unlike when purchasing a normal emission vehicle from a dealership, the good news is, that the government has also stepped in with used EV rebates and incentives to get us all thinking about going electric. Both the federal and provincial governments in Canada offer a variety of vehicle rebates and incentives that can significantly reduce the sticker price.
We’ll walk you through a step-by-step guide on what you need to know when you buy a used EV, the electric vehicle subsidies, and which vehicles are qualified in Canada, so you can reduce your carbon footprint while saving money at the same time.
Reasons for purchasing a used electric vehicle
EV Maintenance and Fuel
The average Canadian EV driver can save between $1,500 and $2,500 per year on gas and maintenance when driving an EV compared to an ICE (internal combustion engine) car.
Paying for gasoline and fuel for internal combustion engines is more expensive than charging electric vehicles in Canada. Additionally, electric motors outlast traditional gas or diesel engines and require fewer parts for repairs, you can expect a lower maintenance cost with driving an EV. Because battery electric vehicle motors have only one moving part, they do not require the oil changes, gearboxes, or exhaust systems seen in gas and diesel vehicles. Also, thanks to the regenerative braking systems that EVs are equipped with, battery electric vehicles and plug-in hybrid electric vehicles have longer brake life than conventional gas and diesel automobiles.
New electric vehicles today typically have a range of at least 200 kilometres on a single charge. Some plug-in hybrid electric vehicles have an electric range of 40-80 kilometres and a gas range of 500-900 kilometres. While used electric vehicles might have minor degradation in their battery ranges, it should not be an issue. Some electric vehicle models’ batteries decrease 1.5-2.0 per cent per year, while most others lose about 2-3 per cent in the first few years before levelling off at 1 per cent per year. Taking Tesla as our example, many used Teslas lose less than 5% of their range after five years. Temperature, cycles, and time are the most common causes of EV battery degradation. Storage and operation temperatures have a significant impact on EV battery performance. Additionally, almost every used EV comes with an 8-year/160,000 kilometres battery guarantee that covers degradation if the battery’s capacity falls below 70%.
A better driving experience with reduced car emissions
Smooth acceleration and transmission contribute to a more enjoyable driving experience with electric vehicles. Because an electric car lacks an internal combustion engine, the electric motor provides smooth acceleration and deceleration. When compared to driving a traditional car, driving an EV can be quieter, smoother, and more comfortable. Furthermore, the low centre of gravity of electric vehicles can improve their handling, responsiveness, and comfort throughout a journey. In addition, by driving battery electric vehicles or plug-in hybrid electric vehicles and using Canadian low-carbon electricity, drivers might lower their vehicle’s greenhouse gas emissions by 60-90 per cent.
How the EV rebate works in Canada
In order to minimise greenhouse gas emissions in Canada, the federal government of Canada introduced the iZEV Program, which provides a federal incentive for electric and plug-in hybrid vehicles.
The tax credit is available if the electric vehicle fits the following program requirements:
Passenger electric or plug-in hybrid vehicle with a base model MSRP of less than $55,000 The higher-priced variant of the vehicle must have an MSRP greater than $65,000.
A station waggon, pickup truck, sport utility vehicle, minivan, van, or specialised vehicle having an MSRP under $60,000. The higher-priced variant of the vehicle cannot have an MSRP greater than $70,000.
While the current federal incentives only apply to the purchase of new EVs, Transport Canada is now looking at ways to include used vehicles in a federal rebate for electric cars. Clean Energy Canada also stated that to better reach Canadians who have less money and need financial support to buy an electric car, the rebates should include used vehicles.
Provincial Rabates for used EVs in Canada
Residents of Nova Scotia can get up to $3,000 in rebates when purchasing or leasing a new long-range electric car with six or fewer seats, and $2,000 when purchasing or leasing a used short-range electric vehicle with six or fewer seats. The Electrify Nova Scotia Rebate Program is the name of this rebate. When combined with the federal scheme, you might receive up to $8,000 in rebates on a new EV purchase.
Drivers in Ontario are eligible for a $1,000 subsidy toward the purchase of a used all-electric vehicle. This incentive is not available for plug-in hybrid automobiles. To be eligible for the program, the vehicles must be entirely electric and have a resale value of less than $50,000 CAD before taxes. The vehicle must be registered and insured in Ontario and used solely for personal purposes.
Drivers in Quebec are eligible for a $3,500 rebate toward the purchase of a used electric vehicle. Quebec’s EV incentive system changed in July 2022. The provincial government incentive on used EV purchases was reduced from $40,000 to $3,500. The new rebate amount will be applied to qualifying used electric vehicles registered on or after July 1, 2022.
Prince Edward Island
The government of Prince Edward Island is paying $5,000 to citizens who buy a new or used electric vehicle. The government will also give you $2,500 if you buy a plug-in hybrid vehicle on or after April 1st, 2021.
Shop used electric vehicles with Carnex.
Learn more about the benefits of buying from Carnex. We believe that all clients deserve to know the good and bad of what they’re buying. Because we wanted to know these when we bought cars. That’s why at Carnex.ca, we will proudly display every detail every step of the way. Browse all the best cars, automobile buying tips, auto insurance, young drivers, driving techniques, auto industry trends from Carnex Blog.