Exploring Government Incentives for Buying a New Car in 2023
Key Highlights :
If you're planning to buy a new car in 2023, you may be eligible for financial support from the federal government. 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, and in light of this, they have introduced a number of incentives which could save you thousands of dollars on a zero-emission car. The iZEV program offers up to $5,000 in incentives towards the purchase or lease of eligible zero-emission vehicles, and there are also provincial and territorial incentives available, too. 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.
The 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.
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. 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. Those who live in P.E.I. and Nova Scotia also have provincial options to take advantage of, with thousands of dollars available to those who buy a qualifying car.
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. So if you're looking to save money on a new car in 2023, be sure to check out the government incentives available to you and make the most of the financial support on offer!
