Car Dealers Demand Reimbursement for EVs Sold Under Previous Rebate Program
Car dealerships in Canada are seeking reimbursements for electric vehicle (EV) sales linked to a previous rebate program. Despite the launch of a new federal EV rebate initiative, some dealers feel the financial impact of the last program, which left them with unpaid reimbursements.
Overview of the Federal EV Rebate Program
The updated EV rebate program enables Canadians to receive up to $5,000 for EV purchases under $50,000. Plug-in hybrids are eligible for a $2,500 subsidy. This revival aims to boost the electric vehicle market, particularly as sales have slowed due to consumer concerns about range and charging infrastructure.
Challenges Faced by Dealers
- Dean Woods, a sales manager from a Kia dealership in Grimsby, Ontario, reported a loss of $20,000 from unpaid rebates.
- Transport Canada denied Woods’s reimbursement request, stating the old program had closed.
- Errors in submission forms have contributed to further complications in the reimbursement process.
Woods expressed concern about the reliability of the new claims portal, which will not launch until April. He emphasized the necessity of closely monitoring claims to ensure that they are processed correctly, given his past experiences.
Industry Response
Huw Williams, spokesperson for the Canadian Automobile Dealers Association, commented on the situation, noting that dealers often have to advance rebates on behalf of the government. He pointed out that these small businesses rely on prompt reimbursements to operate effectively.
- Dealers have raised over submission issues to Transport Canada.
- Many feel discouraged about submitting claims due to past rejections.
Williams urged the government to act in good faith now that the program has been re-established. He emphasized the need for existing dealers awaiting reimbursements to be promptly compensated.
Historical Context of the EV Rebate Program
The previous EV rebate initiative functioned from 2019 until 2025, pausing in January 2025 when funds were exhausted. A temporary reopening occurred for a month last summer to allow dealerships to submit outstanding claims. Transport Canada has confirmed that all eligible claims submitted during that window were paid. However, uncertainty persists regarding cases affected by errors in the submission process.
As the new funding of $2.3 billion is set aside for the revived program, the industry remains hopeful about its impact on EV sales. However, the concerns voiced by dealers highlight the need for a more efficient and reliable reimbursement process moving forward.
