Car Dealers Demand Past Reimbursements Amid New EV Rebate Rollout

The federal electric vehicle rebate program in Canada has made its return, but some car dealers are demanding past reimbursements. As of today, Canadians can claim up to $5,000 toward new electric vehicles (EVs) priced under $50,000, while plug-in hybrids qualify for a $2,500 subsidy. Although the program has garnered support from car dealerships, some are wary due to unresolved claims from the previous initiative.

Key Details of the New EV Rebate Program

The new EV incentive program permits car dealerships to apply the rebate directly at the point of sale. Following the transaction, they can file for reimbursement from the government. However, some dealers are still waiting for funds from the previous iteration of the program, which ended in January 2025.

Challenges Faced by Dealers

• Many dealerships report being out tens of thousands of dollars from the previous program.
• The portal for submitting new claims will not be available until April 2024.
• Dean Woods, a sales manager at a Kia dealership in Grimsby, Ontario, stated his dealership is owed $20,000 from the old program.
• Transport Canada cited an error in Woods’ submission form as a reason for refusal of reimbursement.

According to Woods, the oversight by Transport Canada only became apparent a month ago when his office manager discovered the unpaid claims for EV sales made in 2024. Transport Canada explained that since the previous program has closed, resubmission for reimbursement is not an option.

Concerns Across the Dealership Sector

Huw Williams from the Canadian Automobile Dealers Association expressed concerns about the burden placed on small dealers. He noted that dealerships often front the costs for EV purchases and may face financial difficulties, especially if reimbursement issues arise.

While some dealers have successfully submitted claims, others are hesitant, fearing rejection. Williams emphasized the need for Transport Canada to reimburse waiting dealers now that a new EV incentive program has been established, which has a funding pool of $2.3 billion.

Looking Ahead

The government has indicated that it briefly reopened the previous rebate program last summer for submissions. According to Transport Canada, all eligible claims submitted during that time were paid, but issues related to submission errors were not addressed. As new rebates roll out, the status of outstanding claims remains a pressing issue for dealers.

With the renewed focus on electric vehicles in Canada, it is imperative for local dealerships to receive the funds they are owed. The success of the current rebate initiative may depend on the government’s willingness to address unresolved claims from its predecessor.