Yes, you can combine dealer discounts with government incentives in Canada to save on a new car, especially zero-emission vehicles (ZEVs). Dealer discounts are negotiated price reductions, while government incentives are rebates applied at the point of sale. For example, Quebec offers up to $7,000 in provincial rebates for electric vehicles, which can stack with dealer discounts. Federal rebates under the iZEV program ended in January 2025, but provincial programs remain active.
Key Points:
- Dealer Discounts: Negotiated directly with the dealership, typically 3%-7% off the invoice price.
- Government Incentives: Provincial rebates (e.g., $7,000 in Quebec, $4,000 in BC) still available for ZEVs.
- Stacking Rules: Dealer discounts, provincial incentives, and manufacturer rebates can be combined, but you cannot stack multiple provincial programs for the same vehicle.
- Limits: Rebates for medium/heavy-duty vehicles cannot exceed 75% of the MSRP.
To maximize savings:
- Research provincial incentives and vehicle eligibility.
- Negotiate the dealer discount first, separate from rebates.
- Time your purchase strategically (e.g., end of the quarter or model year).
Stay updated on program changes, as some provincial rebates may reduce or end in the coming years.
15 Cars SELLING below MSRP (November 2025)
Can You Combine Dealer Discounts with Government Incentives?
Yes, you can combine dealer discounts with government incentives to reduce the overall cost of your car. Dealer discounts are negotiated reductions on the selling price, while government incentives are applied as credits on your bill of sale or lease. According to Transport Canada, "The federal incentive for eligible ZEVs will be applied in addition to any provincial or territorial incentive offered". This means you can stack multiple savings opportunities to maximize your discount. Let’s break down how these incentives work together.
Taxes and fees are calculated based on the pre-incentive price, which is important to keep in mind. As Adil Khan from Unhaggle points out, "Dealer discounts can be taken on top of in-market incentives", confirming that these discounts can be layered with government programs.
In addition to dealer discounts and government incentives, you can also include manufacturer rebates and loyalty offers. Loyalty rebates, for example, can range from $750 to as much as $4,000 depending on the brand. These rebates stack with both dealer discounts and government incentives, making them another valuable source of savings. Here’s a quick look at how different incentive types combine:
| Incentive Type | Source | Combinable? | Application Point |
|---|---|---|---|
| Dealer Discount | Dealership | Yes | Negotiated off MSRP |
| Manufacturer Rebate | Factory | Yes | Applied after dealer discount |
| Federal Incentive (iZEV) | Government | Yes | Point of sale (after taxes) |
| Provincial Incentive | Government | Yes | Point of sale (varies by province) |
| Loyalty Incentive | Manufacturer | Yes | Additional rebate for existing owners |
While these stacking opportunities are great, there are some limitations. For example, you can combine federal and provincial incentives, but you generally cannot use two different provincial programs for the same vehicle. Additionally, for medium- and heavy-duty vehicles, there’s a cap: the combined total of federal and provincial incentives cannot exceed 75% of the vehicle's MSRP.
Understanding how these incentives work together is key to maximizing your savings. These principles set the foundation for a broader strategy to get the best deal, which will be explored further in the next sections.
How Government Incentives Work in Canada
Canadian Provincial EV Rebates and Incentive Stacking Guide 2025
In Canada, government incentives for zero-emission vehicles (ZEVs) have been available through both federal and provincial programs. However, the federal program, known as the Incentives for Zero-Emission Vehicles (iZEV) Program, came to an early end in January 2025 after its funds were depleted ahead of schedule. Despite this, many provincial programs remain active, continuing to offer savings for those looking to purchase electric vehicles (EVs). Let’s take a closer look at the now-closed federal iZEV program and the ongoing provincial initiatives.
Federal iZEV Program
Before it ended, the iZEV program provided financial incentives to encourage the adoption of ZEVs. Buyers could receive up to $5,000 for battery-electric vehicles (BEVs), hydrogen fuel cell vehicles, and long-range plug-in hybrids (with a range of 50 km or more). Shorter-range plug-in hybrids qualified for a smaller rebate of $2,500. These incentives were applied directly at the point of sale, after taxes and fees.
Eligibility for the program hinged on strict maximum manufacturer’s suggested retail price (MSRP) limits. For passenger cars, base models and higher trims had to fall within the $55,000–$65,000 range, while larger vehicles were capped between $60,000 and $70,000. Additional costs like delivery charges, freight, and accessories (e.g., roof racks) didn’t count toward these limits. Lease agreements were also eligible, but the rebate amount was prorated based on the lease term - for example, a 24-month lease qualified for only 50% of the incentive.
Now that the federal program has ended, provincial programs have taken centre stage, each offering unique benefits and criteria.
Provincial Programs and Differences
Provincial incentives vary widely in terms of rebate amounts, eligibility requirements, and additional benefits. For example, Quebec leads the way with some of the most generous rebates in the country, offering up to $7,000 for new BEVs and $5,000 for plug-in hybrids, provided the purchase price is below $65,000.
In British Columbia, rebates are income-tested. Residents earning less than $80,000 annually can receive up to $4,000, while those earning over $100,000 are not eligible.
The Atlantic provinces also provide competitive incentives. New Brunswick offers up to $5,000 for BEVs and includes a $750 incentive for installing a home charging station. Prince Edward Island provides up to $5,000 for BEVs and up to $2,500 for plug-in hybrids, along with a $750 credit to offset charging costs. Similarly, Nova Scotia offers $3,000 for both BEVs and plug-in hybrids. Notably, some provinces, including New Brunswick, Prince Edward Island, Nova Scotia, and Quebec, extend their programs to include used ZEVs as well.
| Province | Max New BEV Rebate | Max PHEV Rebate | Key Feature |
|---|---|---|---|
| Quebec | $7,000 | $5,000 | Highest rebates; includes incentives for used vehicles |
| British Columbia | $4,000 | $2,000 | Income-tested eligibility |
| New Brunswick | $5,000 | $2,500–$5,000 | Includes $750 for home charging |
| Prince Edward Island | $5,000 | $2,500 | Includes $750 for charging-related costs |
| Nova Scotia | $3,000 | $3,000 | Aligns with federal vehicle eligibility |
What Counts as a Dealer Discount and How It Applies
A dealer discount is a price cut you negotiate directly with the dealership. Unlike manufacturer offers, which are set and advertised publicly, dealer discounts come from the dealership itself. Essentially, the dealer agrees to take a smaller profit to close the deal. How much of a discount you can secure depends on your negotiation skills and how motivated the dealer is to sell. This direct negotiation gives you the chance to lower the price before applying other incentives.
Dealer discounts work independently from manufacturer rebates like cash offers, special financing rates (e.g., 0% APR), or bonus cash. These manufacturer incentives are available to all qualified buyers and don’t require negotiation.
The best part? Dealer discounts usually stack with manufacturer incentives and government rebates. This means you can negotiate a lower price with the dealer and still take advantage of any rebates or special offers.
When negotiating, aim to pay between 3% and 7% above the vehicle’s invoice price. For luxury vehicles, expect to pay closer to 9% above the invoice. Knowing the invoice price before heading to the dealership gives you a realistic starting point, rather than relying on the MSRP.
It’s also smart to negotiate the dealer discount separately from trade-in values or financing terms. Since the discount comes directly from the dealer’s profit margin, lock in the lowest price first before discussing any trade-in or financing options. Timing can also work in your favour - shopping during end-of-model-year clearance events or holiday promotions often leads to bigger discounts as dealers aim to meet sales goals.
A strong dealer discount sets the stage for combining it with other incentives, giving you the best possible deal.
sbb-itb-20f5d75
Rules and Limits for Combining Discounts and Incentives
Stacking Limits and the 75% MSRP Cap
When it comes to medium- and heavy-duty vehicles under the iMHZEV program, there’s an important rule to keep in mind: combined federal and provincial rebates cannot exceed 75% of the Manufacturer’s Suggested Retail Price (MSRP). This cap doesn’t apply to light-duty passenger vehicles. If the total rebates for a medium- or heavy-duty vehicle go over this limit, the provincial program automatically adjusts its share to stay within the 75% threshold.
For light-duty vehicles under the now-closed iZEV program, eligibility was determined by strict MSRP thresholds (as outlined in the federal program section). It’s important to note that dealer discounts don’t change the official MSRP used for eligibility. Even if you negotiate a lower price, the original MSRP is still the benchmark for determining whether the vehicle qualifies for rebates.
Understanding these stacking limits is crucial if you want to maximize your savings. These rules set the foundation for navigating the broader eligibility criteria that follow.
Vehicle Eligibility and Exclusions
Eligibility for discounts and incentives doesn’t stop at stacking limits - several other factors come into play. One key consideration is where the vehicle is manufactured. Starting October 1, 2024, vehicles produced in countries without a free-trade agreement with Canada - like China - are generally excluded from federal incentives unless they were already en route to Canada by that date. For instance, the 2024–2025 Tesla Model 3 and Model Y lost eligibility for federal rebates when their base MSRP surpassed $55,000 on January 10, 2025.
Specific rules also apply to demonstrator vehicles (those with fewer than 10,000 km) and leased vehicles. Leases must be for at least 12 months, and incentives are prorated for lease terms under 48 months. Additionally, individuals can only claim one federal incentive per calendar year, while businesses are allowed up to 10.
Provincial stacking rules add another layer of complexity. For example, in British Columbia, you can combine federal and provincial rebates, but you’re not allowed to stack two different provincial grants for the same vehicle. With the iZEV program officially ending on January 12, 2025, after all its funds were allocated, these rules now apply solely to the iMHZEV program, which focuses on commercial vehicles and runs until March 31, 2026, or until funding is depleted. These eligibility restrictions and conditions directly impact how you can combine rebates and discounts to get the most savings.
How to Maximize Savings by Combining Discounts and Incentives
Building on the principles of stacking discounts and incentives, here's how you can stretch your savings even further.
With the federal program no longer available, start by confirming the incentives offered in your province. Provinces like British Columbia, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Yukon have their own programs. Check the official "List of Eligible Vehicles" to ensure your car’s year, make, model, and trim are eligible. For example, in British Columbia, income-based rebates require pre-approval if your annual income is under $80,000. Once you’ve nailed down the available incentives, you’ll be ready to approach the negotiation process.
Next, focus on negotiating the vehicle price separately from any incentives. Start by finding the dealer's invoice price and aim to negotiate just above that amount, rather than starting with the MSRP. To strengthen your position, secure pre-approved financing from your bank before heading to the dealership.
Timing is another key factor. Dealers often feel the pressure to meet sales quotas during the last week of each quarter - March, June, September, and December - which can lead to better deals. Visiting the dealership on quieter days, like Mondays or Tuesdays, or even during bad weather, might also give you an edge in negotiations.
Before signing the dotted line, double-check that the dealer discount and government incentive are listed as separate deductions on your bill of sale. Taxes and fees should be calculated on the purchase price before the incentive is applied. Be aware that dealerships are not allowed to charge extra fees for processing government incentives; if they do, report it to Transport Canada. Keep in mind that most vehicle purchase contracts are binding and do not include a cooling-off period.
For additional help, Price Driven offers free discount reports that provide insights into dealer-level pricing and market value comparisons. Their $99.00 pre-negotiated pricing service guarantees prices with partner dealerships, making it easier to combine provincial incentives with dealer discounts and maximize your total savings.
Conclusion
Combining dealer discounts with government rebates can substantially lower the cost of electric vehicles, but it’s essential to understand how these savings work. For instance, the federal iZEV Program officially paused on January 12, 2025, after its funds were fully allocated. Meanwhile, several provinces - such as British Columbia, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Yukon - still offer rebates that can be stacked with dealer-negotiated discounts.
To get the most out of these savings, start by researching the dealer's invoice price and negotiating the vehicle's cost without factoring in rebates. Next, confirm your eligibility for provincial incentives by ensuring your chosen vehicle trim falls within the MSRP limits. These steps should remain distinct during the buying process.
Timing also plays a significant role. Purchasing near the end of the model year can give you more leverage in negotiations. Before signing any paperwork, double-check that both the dealer discount and government rebate are clearly itemized.
Since incentive programs frequently change, staying informed is key. For example, Quebec's Roulez Vert program is set to decrease its benefits in 2026 and end entirely by 2027. To make the most of available incentives, regularly check official provincial websites and Transport Canada for updates on program availability and funding.
FAQs
Will I still qualify for a rebate if I buy a vehicle just before the program ends?
Yes, if you make your purchase on or before the rebate program's deadline, you’ll still qualify for the incentive. For instance, if the program ends on 31 March 2026 or 2 January 2026, any purchase made on those dates or earlier will be eligible for the rebate.
Always double-check the specific terms and conditions of the rebate program to confirm that your purchase meets all required criteria.
Can I still get dealer discounts if my vehicle doesn’t qualify for provincial rebates?
Even if your vehicle doesn’t qualify for provincial rebates, you can still benefit from dealer discounts. These discounts are entirely separate from government incentives, which means they’re available to you regardless of rebate eligibility.
In other words, dealerships often offer their own savings opportunities, so you can still reduce your costs without relying on provincial or federal programs. Don’t forget to ask your dealer about any available discounts - they can help you make the most of your purchase!
Can I combine dealership discounts with provincial incentives on my new vehicle?
Yes, you can often combine dealership discounts with provincial incentives, but it depends on the specific vehicle and the program's rules. To find out, review the manufacturer's incentive sheet and look for terms like "Stackable with Bonus Cash" or "Stackable only with Consumer Cash" to see if your vehicle qualifies.
You'll also need to ensure the vehicle meets your province's program requirements. Typically, this means the vehicle must be new and never registered, fit the required body type, and you must be a resident of the province. Check your province's eligible vehicle list to confirm if your model qualifies for programs like the iZEV initiative. To avoid any unexpected issues, confirm all details with both your dealership and provincial guidelines.
