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How to save money when buying an electric car

How to save money when buying an electric car

A couple of years back, electric cars were a rarity in Canada. Today, electric vehicles are not so scarce. In fact, sales are growing every quarter and within a few years, they will outnumber gas cars.

The popularity of electric vehicles in Canada is much more than a trend. With the price of gas climbing increasingly high, car owners are trying to find an alternative to gas cars.

And electric vehicles have proven to be a viable option for saving money, especially when buying them.

Ways to save money when buying an electric car

Paying upfront for an electric car is always enormous. How then can you save some money while doing this? Here are a few steps to help you achieve this:

Lease and purchase incentives

The Canadian government is trying to encourage the use of low carbon-emitting vehicles and equipment. In order to further consolidate their efforts, there are several incentives for the purchase or lease of electric vehicles.

However, before gaining access to this lease, your vehicle must be a ZEV car.

For your vehicle to be a ZEV car, it must be listed. Furthermore, this eligibility lasts for 12 months. Before any electric vehicle is added to the list, it is assessed to check if it meets the requirements for the ZEV program.

Criteria for a vehicle to be registered on the ZEV program

Some of the requirements an electric car must meet before it is featured on the ZEV list are:

  • Align with the Canadian motor vehicle safety standards.
  • Be used only in public places and on highway streets
  • Must have at least four functioning wheels (can drive at high speed).

Asides from all of these requirements, only electric cars that have never been plated before (new) are considered.

Types of incentives for electric cars

There are several incentives for electric cars in Canada. Some of these incentives are:

  • The car must have an electric battery, hydrogen fuel cell and a long-range plug-in hybrid vehicle, which is up to 50km. These cars have access to $5000 cashback.
  • Electric cars with shorter range hybrid plug-ins of fewer than 50 km have access to cashback of $2500.

Tax write-off for businesses

The Canadian government has approved a sizable portion of its national budget to write off taxes for zero-emission vehicles. This tax write-off is mainly for businesses in Canada to encourage the adoption of electric cars in businesses.

However, businesses who have accessed the ZEV federal government incentives cannot access the tax write-off.

How to access these incentives?

Electric car incentives are applied at the dealership during the point of sales. The Incentives always appear on the agreement or the bill of sales on eligible ZEVs.

To access the Incentives, the dealer must apply for taxes and pay the fees for lease or purchase before trying to secure the Incentives.

The dealer must also provide the necessary documentation for the reimbursement of the incentives which would be given to the point of sales.

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Categories: EV motoring