When will there be a federal subsidy for used electric vehicles?

If you're looking for an affordable 100% electric vehicle, a used model is certainly worth considering. That said, subsidies are sometimes hard to come by, and sometimes not available at all.

In Quebec, since July 1, 2022, the provincial government has granted a rebate of $3,500, or half of the rebate given to those who choose a new electric vehicle. The rebate can be obtained from your dealer, or you can apply for it yourself through the Roulez vert program.

The problem is that few used electric vehicles actually qualify for the subsidy. Why is that? Because they have to meet the following criteria:

• Be purchased from a car dealer with an establishment in Quebec (i.e. not an individual);
• Be a first-time Quebec registrant (i.e. from outside the province) or have never received a new vehicle rebate under the Go Green program;
• Be associated with a make, model and version of the latest equivalent new vehicle with an MSRP of less than $65,000;
• Have a battery capacity of 8 kWh or more;
• Be inspected to assess the battery's residual capacity in relation to its initial capacity.

In addition, used Kia, smart and Volkswagen electric vehicles from the U.S. are not eligible, as the original new vehicle warranty is not honored when the vehicle is transferred to Canada.

The good news is that the vehicle no longer has to be three or four years old in relation to the calendar year of its registration date, as was previously the case. At present, certain used 2022 and 2023 models are eligible. Click here for the full list.

No help from Ottawa... for now

While new electric vehicles are also eligible for a federal government subsidy ($5,000), this is unfortunately not the case for used models that have already been registered. The only exception: demonstrators are considered new vehicles and are eligible for the incentive, provided the odometer reading remains below 10,000 km.

According to CBC's December report, based on the latest progress report on Canada's Emissions Reduction Plan, the Trudeau administration will study the possibility of adding used vehicles to its zero-emission vehicle incentive program (iVZE).

Canada's Transport Minister, Pablo Rodriguez, has a mandate to "improve affordability and accelerate the adoption of zero-emission vehicles, including used vehicles, for Canadian households and businesses", according to a statement issued by the Minister's office.

In short, the federal government's door is open. Let's hope that a future Ottawa subsidy for used models will be substantial enough to really encourage Canadians who want to make the leap to an electric vehicle.