I want an affordable electric vehicle with a range of at least 400 kilometers. Are there EVs with that much range that qualify for discounts? Also, I’m confused about how discounts work. Does the manufacturer’s recommended retail price (RRP) include the discount? Do I buy the car and then apply for the discount? – Mark, Calgary

While you can get 520 miles of range in a Lucid Air Grand Touring for more than $200,000, you can still get long range for about a quarter of that price.

Of the nearly two dozen 2023 model year EVs on Transport Canada’s list of battery-electric vehicles (BEVs) eligible for the full $5,000 federal rebate, at least 10 achieve greater than 1000 range under ideal conditions 400 kilometers.

To qualify for the federal rebate, a passenger vehicle must have a base model with a manufacturer’s suggested retail price (MSRP) of less than $55,000 and the trim you purchase must not cost more than $65,000, before additional options and dealer extras on the Transport Canada website.

For station wagons, pickups, SUVs, and minivans, that increases to $60,000 for the base model and $70,000 for taller trims.

“You have to have a basic version available (at this price point),” said Daniel Breton, chief executive officer of Electric Mobility Canada, a Montreal-based national nonprofit that promotes electric vehicle ownership. “It has to be in the books, but it doesn’t have to be available at the retailer.”

For example, before the cap on base models was raised to $55,000 from last year’s $45,000, Tesla offered a $44,999 Model 3 that was software-limited to a range of 151 kilometers, just so that car could qualify for the discount.

“You could order one, but hardly anyone bought it,” Breton said.

Now Tesla is offering a 2023 rear-wheel drive Model 3 for $54,990 with a range of 438 kilometers that qualifies for the discount.

“Now their basic version is allowed [to the federal rebate program] and they sell tons of it,” Breton said.

Some with a range of more than 400 kilometers can be found on the list of BEV 2023 that are eligible for federal funding.

These include the BMW i4 eDrive 35 (412 kilometers), Chevrolet Bolt EV LT (417), Hyundai Ioniq 5 Long Range AWD (428), Hyundai Ioniq 6 Long Range AWD (509), Hyundai Kona electric (415), Kia EV6 RWD Long Range (499), Nissan Ariya (490), Polestar 2 (435 for RWD, 418 for AWD) and Volkswagen ID.4 (443 RWD, 410 AWD).

The Chevrolet Bolt EV LT, which will be discontinued later this year, is the least expensive on the list at $41,542 including freight but before tax. With the federal rebate it would be $5,000 less.

The discount only applies to new cars. It’s not included in the listed MSRP — although some automakers, including General Motors, calculate it when you build a vehicle on their websites.

If your vehicle is on the discount list, the dealer automatically deducts the discount when you buy the car. Once you’ve claimed the federal rebate, you also can’t claim income tax write-off on an EV you use for business.

Seven provinces and territories – British Columbia, Yukon, Quebec, New Brunswick, Nova Scotia, PEI and Newfoundland – offer their own incentives with their own rules in addition to the state incentives.

“Things get more complicated from one province to another,” Breton said.

For example, BC offers a $4,000 rebate on BEVs if your income is less than $80,000 a year — but the amount goes down the more you earn.

Other details vary. For example, in Newfoundland and Labrador, you must apply for the rebate after purchasing the vehicle rather than simply getting it from the dealer.

Do you have a driving question? send it [email protected] and include “Driving Concerns” in your subject line. Emails without the correct subject line may not be answered. Canada is big so let us know where you are so we can find the answer for your city and province.


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