An Electric Vehicle (EV) is powered by electricity either from a power grid, solar system, or kinetic energy from breaking, for power. In contrast, a Hybrid Vehicle (HV) consists of both an electric-powered feature and the gas-powered feature. It can run on gas and on electricity.
The rise in gas prices gradually makes EVs an option for people in Canada. The number one advantage you get from an EV is how much you get to save on gas. Instead of branching at a gas station every few days, you can plug your car at home to refuel. Same thing with an HV. Depending on your city or province, the electric feature in a hybrid car will save you cash on gas. For example, Vancouver is known for its high price of gas. Though both cars are expensive, you get to recoup your money from the savings on gas every now and then.
With an EV, you get to save money on maintenance. An EV is known to only have a handful of inexpensive maintenance costs compared to cars with Internal Combustion Engines (ICE). no need for an oil change, belt replacement or other expensive maintenance and repairs that are associated with ICE cars. EV maintenance and repair will run you $949 per year, which is $330 less than a traditional vehicle.
The upfront payment on an HV is known to be on the high side compared to a gas-powered vehicle. Sometimes the difference could be as high as $10,000. Depending on the brand you buy, an HV could be cost-intensive. You should consider the price of gas in your area, how much time you will be driving and how long it will take you to recoup your expenses in gas savings.
An EV is also the same as the price of a new ICE vehicle. In Canada, it is advisable to go for a used EV as they are cheaper than buying brand new ones. You can also enjoy tax credit in some provinces if you buy an EV. Some of them include:
- Nova Scotia: $2,000 rebate on used EVs;
- Ontario: $1,000 toward the purchase of a used EV and $1,000 toward the purchase of a used EV if you scrap your old ICE vehicle;
- Prince Edward Island: $5,000 rebate for a used EV;
- New Brunswick: $1,000 rebate (PHEV); $2,500 rebate (EV).
The EV and HV market in Canada continues to grow impressively. The world is gradually shifting to green energy and Canada is not far behind. The HV and EV market had total revenues of $1.1bn in 2020, representing a compound annual growth rate (CAGR) of 17.7% between 2016 and 2020. The market consumption volume increased with a CAGR of 14.9% between 2016 and 2020, to reach a total of 40,206.0 units in 2020. Even though the EV and HV market declined in 2020 due to the pandemic, with a decline of about 33.8%. There are strong indications that things are getting back to normal, and the market will continue to grow.
To find out more on Incentives for Purchasing Zero-Emission Vehicles, CLICK HERE for information from Transport Canada.