And since all other EV sales pale in comparison to Tesla in Canada, that means the federal government will have to pay out almost nothing in incentives. They get a pat on the back for pretending to be green (while in fact being exactly the opposite), and they don't have to do much.
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Federal EV coming this budget 2019
- Thread starter Jctin
- Start date
I find that price very suspicious... It's as if GM talked with the Liberals and decided together of the MSRP for the incentive...
I think we complain by voting NDP? As much as I think the NDP are more or less a bunch of pansies, this move by the Liberals really is offputting.
True, but it's easier for other manufacturers who can make up for small margins or even losses on EVs with profits on ICE vehicles
There's an article in French on this budget that says that MSRP doesn`t have to include shipping, preparation, and administrative fees in most provinces besides Quebec. However, the Office of Consumer Protection in Quebec requires mandatory fees to be included in the MSRP. So, at today's prices a base Kona EV would seem to be eligible in Ontario ($44,500 + $1,800 + $600) but not in Quebec.
Rabais pour véhicules électriques: un retour raté
Rabais pour véhicules électriques: un retour raté
The the government will change the rules and lower the threshold accordingly.
Two things are clear:
- They had a set $ amount to allocate. They then "ran the numbers" to see how many units were sold at each price point and set the figure to cut off at the magic number. They don't intend this new rebate for everyone to rush out and buy EV's.
- Tesla was an obvious price point benchmark. Politically, it's a no-brainer to exclude Tesla's. There's only political downsides to allowing people to use federal funds to buy Tesla's.
They can't lower it anymore without shutting out GM and then Nissan and Hyundai EVs as well.
I think getting under 45K would be fairly simple. Offer a software locked SLR (Stupidly Low Range) version for 5k less. Say a 150 km range. Allow the Consumer to upgrade after the sale to the 354km range for 5K. They could do this before or after they receive their rebate. I doubt there would be many that would not opt to upgrade. At a price of 42,600, they would have some colour chooses.
True, the extra range could then be offered at point of sale or optionally after.
Except the cost to Tesla to make the car remains the same. So cutting the cost, while increasing sales, will result in selling cars at a loss.
The official wording
“To encourage more Canadians to buy zero-emission vehicles, Budget 2019 proposes to provide $300 million over three years, starting in 2019–20, to Transport Canada to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a manufacturer’s suggested retail price of less than $45,000. Program details to follow.”
They then have a special EV incentive for businesses with a $55000 limit.
“Immediate expensing will apply to eligible vehicles purchased on or after March 19, 2019 and before January 1, 2024. Capital costs for eligible zero-emission passenger vehicles will be deductible up to a limit of $55,000 plus sales tax. This is higher than the capital cost limit of $30,000 plus sales tax that currently applies to passenger vehicles. This new $55,000 capital cost limit reflects the comparably higher cost of zero-emission vehicles and will be reviewed annually to ensure that it remains appropriate as market prices evolve over time.”
Page 82 of the document.
It basically explains why EVs are more expensive and justifies the higher limit. Why not for individuals too?
There are more examples on the next page.
“To encourage more Canadians to buy zero-emission vehicles, Budget 2019 proposes to provide $300 million over three years, starting in 2019–20, to Transport Canada to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a manufacturer’s suggested retail price of less than $45,000. Program details to follow.”
They then have a special EV incentive for businesses with a $55000 limit.
“Immediate expensing will apply to eligible vehicles purchased on or after March 19, 2019 and before January 1, 2024. Capital costs for eligible zero-emission passenger vehicles will be deductible up to a limit of $55,000 plus sales tax. This is higher than the capital cost limit of $30,000 plus sales tax that currently applies to passenger vehicles. This new $55,000 capital cost limit reflects the comparably higher cost of zero-emission vehicles and will be reviewed annually to ensure that it remains appropriate as market prices evolve over time.”
Page 82 of the document.
It basically explains why EVs are more expensive and justifies the higher limit. Why not for individuals too?
There are more examples on the next page.
How many people would live with 150km of range when they can get another 200km for 5k? That 150km of range may go down to about 90km in the winter. I think Tesla would get it's money.
If I understand correctly businesses can expense 55 instead of 30? That is still fantastic for me. Can you post a link of the document? Id like to see the other examples.
Budget 2019: Chapter 2
Keep in mind:
- This not law yet so the actual details aren't written down yet.
- If this is just a limit increase, this just increases amount of CCA you deduct against your business income and half year rule still applies. You can't* take the whole $55,000 against your business income in the year you purchased your car.
*ninja edit
Last edited:
FrForget
Member
That just makes no sense, here some facts from Journal De Montréal about it:
“ The government has not given any details as to the effective date of these rebates, which could mean that they could start in May, June … or later, potentially putting a brake on electric vehicle sales. for several weeks or months as consumers wait before making their purchase. Serious errors. Dealers are likely to see their inventory of electric vehicles pick up dust by then.
I do not know of any hydrogen vehicles available for less than $45,000.
If we do a quick calculation, we can already say that $300 million over three years, we will be limited to about 20,000 electric vehicles per year. Considering that nearly 2 million new vehicles were purchased by Canadians in 2018, we are talking about 1% of sales for the next three years. Canada is targeting 100% zero-emission vehicle sales by 2040, with 10% by 2025 and 30% by 2030 en route. This is called not having the means of its ambitions.
In addition, these targets will be voluntary, that is to say that manufacturers will have no obligation to achieve them. Having already witnessed the total ineffectiveness of the voluntary vehicle emission targets set up by former Environment Minister Stéphane Dion more than 10 years ago, we cannot expect any miracles.
By limiting $5,000 rebates to vehicles under $45,000, the federal government is de facto eliminating all electric vehicles at 300 kilometers of range and over: Hyundai Kona Electric, Kia Niro Electric, Tesla Model 3, Nissan Leaf PLUS etc. In addition, for a potential Bolt EV buyer who is offered a $44,800 + $1,795 transportation and preparation fee + $100 tax for air conditioning, this leads to a total MSRP of $46,695. As the MSRP in Quebec must include, will the Bolt be eligible for the $5,000 rebate in Quebec, while in other provinces, the MSRP includes only the price of the vehicle? Thus, all those who have been reassured by the possibility of obtaining a long-range electric car, but who found them a little expensive are discouraged from switching to 100% electric vehicles. ”
Source: Rabais pour véhicules électriques: un retour raté
“ The government has not given any details as to the effective date of these rebates, which could mean that they could start in May, June … or later, potentially putting a brake on electric vehicle sales. for several weeks or months as consumers wait before making their purchase. Serious errors. Dealers are likely to see their inventory of electric vehicles pick up dust by then.
I do not know of any hydrogen vehicles available for less than $45,000.
If we do a quick calculation, we can already say that $300 million over three years, we will be limited to about 20,000 electric vehicles per year. Considering that nearly 2 million new vehicles were purchased by Canadians in 2018, we are talking about 1% of sales for the next three years. Canada is targeting 100% zero-emission vehicle sales by 2040, with 10% by 2025 and 30% by 2030 en route. This is called not having the means of its ambitions.
In addition, these targets will be voluntary, that is to say that manufacturers will have no obligation to achieve them. Having already witnessed the total ineffectiveness of the voluntary vehicle emission targets set up by former Environment Minister Stéphane Dion more than 10 years ago, we cannot expect any miracles.
By limiting $5,000 rebates to vehicles under $45,000, the federal government is de facto eliminating all electric vehicles at 300 kilometers of range and over: Hyundai Kona Electric, Kia Niro Electric, Tesla Model 3, Nissan Leaf PLUS etc. In addition, for a potential Bolt EV buyer who is offered a $44,800 + $1,795 transportation and preparation fee + $100 tax for air conditioning, this leads to a total MSRP of $46,695. As the MSRP in Quebec must include, will the Bolt be eligible for the $5,000 rebate in Quebec, while in other provinces, the MSRP includes only the price of the vehicle? Thus, all those who have been reassured by the possibility of obtaining a long-range electric car, but who found them a little expensive are discouraged from switching to 100% electric vehicles. ”
Source: Rabais pour véhicules électriques: un retour raté
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