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OMVIC Blog: Car Buying Tips

Consumers need to protect themselves as EV Rebate Program winds down

Aug 9

Written by: OMVIC Communications
Thursday, August 9, 2018  RssIcon

EV Rebate

Electric Vehicle (EV) buyers who are expecting to receive a rebate from Ontario’s  soon-to- be-cancelled Electric and Hydrogen Vehicle Incentive Program (EHVIP)should take steps to protect themselves from possible increased costs when signing a purchase contract.

According to the Ministry of Transportation (MTO), in order for an EV buyer to qualify for the incentive (most rebates are between $7,000 -$14,000 depending on the EV purchased):

1. the vehicle purchased must be on MTO’s list of eligible vehicles
2. the dealership had to confirm the vehicle as part of its eligible inventory (in stock or ordered) with the MTO by July 16th
3. the customer has to take delivery of the vehicle before the program ends in September.

If the vehicle is in stock and the dealer has properly notified MTO that it is part of its eligible inventory, this shouldn’t be problematic” stated John Carmichael, CEO and Registrar of OMVIC, Ontario’s vehicle sales regulator. “But we do have concern for the consumer who orders an EV that isn’t in stock and the delivery date is uncertain.Because if the EV is not registered, plated and delivered, by September 10th 2018, or if the dealer failed to report the vehicle to the MTO as eligible by the July 16th deadline, the vehicle does not qualify for an incentive and a buyer could potentially face a cost increase, depending on how the contract is worded.

An incentive of up to $14,000 is significant, and receiving that money could be a deciding factor for many consumers in deciding to buy an EV before the incentive program ends. So Carmichael has some advice for those shoppers who are considering an EV purchase in the next six weeks, where that purchase is contingent on receiving the EHVIP incentive: “Make the deal conditional. Have the dealer include a clause on the bill of sale stating that the vehicle must be delivered, registered and plated by September 10th and that the vehicle qualifies for the EHVIP incentive. If this condition isn’t met, the contract is cancelled and any deposit is returned to the consumer. “OMVIC believes that by taking this step, both the dealer and consumer have the same expectations and this will help avoid any misunderstandings or disputes if vehicles can’t be delivered before the program winds down.”

Of course a dealership has to agree to any conditions but most understand a consumer’s concerns and desire to ensure the transaction goes smoothly, and will accommodate. Should a dealer refuse to include a condition a consumer has requested, it is then up to the consumer to decide if he or she wants to do business with that dealer.

MTO EVHIP Information

MTO EVHIP Announcement

MTO EVHIP Eligible Vehicle and Incentive List
(important note: please contact MTO for most up-to-date vehicle eligibility information – Tesla and any other 2019 make/model may not be eligible)

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