How to Save up to $33,000 on an Electric or Hybrid Car
As the owner of a Tesla Model 3, I have answered a fair share of questions about my car from family, friends and strangers in the parking lot.
And so, today I am going to share my experience in owing a Model 3. I will also answer what is perhaps the most important question – how to save up to $33,000 on an electric or hybrid car in Canada.
My Model 3 Experience
Two words: instant torque.
It is this ability to accelerate immediately that has converted me into a fan of electric cars. I have driven fast cars in the past, but the thrill of acceleration from my Model 3 is different. NO LAG. ONE PEDAL DRIVING. FUN TO DRIVE. I also feel safer knowing that I can quickly switch lanes on the highway or change speeds to avoid an accident.
Other perks include no gas station lineups and less routine maintenance. There’s no need for oil changes and the brake pads would “literally never need to be replaced”, says Tesla CEO Elon Musk. This is due in part to regenerative breaking causing less wear on the brake pads compared to an internal combustion engine (a.k.a ICE) vehicle.
It also costs a fraction of what I would have normally spent at the gas station to charge my electric vehicle. Of course, it helps that I can supplement charging at home with free supercharging credits from Tesla’s promotions and the Referral Program*. If you are considering purchasing a Tesla, I suggest that you look into these options too.
I have owned my Model 3 for a year now and couldn’t be happier. But there was one factor that compelled me to even consider buying an electric car in the first place: THE INCENTIVES.
Let’s take a look.
How to Save Money on a Electric or Hybrid Car
Many people are aware that the Federal Government provides up to $5,000 to buy zero-emissions vehicles under the iZEV program. But what most people don’t realize is that claiming this incentive can preclude you from receiving an even larger benefit of up to $33,000. More on that later.
First, let’s understand how the iZEV program works. To program provides up to $5,000 for cars purchased or leased after April 30, 2019. A list of eligible vehicles can be found at Transport Canada. Your dealership is responsible for completing the documents to receive an incentive under the program. And if you qualify, the incentive is applied directly on your bill of sale.
BUT, there is a catch. Any vehicle that is paid under the iZEV program is not eligible for an enhanced tax write-off.
So, what is the enhanced tax write-off?
This rule allows you to write-off 100% of your electric or hybrid car for tax purposes. The write-off is limited to an amount of $55,000 (plus sales tax). This translates to up to $33,000 in tax savings depending on your tax bracket! To be eligible, the vehicle must be used for employment, self-employment or business purposes and purchased after March 18, 2019. The tax write-off is applied at the time of filing your personal or corporate tax return by using two new CCA classes introduced by CRA.
THE KEY TAKEAWAY: Compare both options BEFORE purchasing your car.
* If you enjoyed my blog post and are considering purchasing a Tesla, you can use my referral link to receive 1,500 kilometers of free Supercharging: https://ts.la/joseph40036
