The abrupt end of the iZEV rebate program on January 13, 2025, has left many dealerships, and their customers, scrambling. Originally set to run until March 2025 (or when funds ran out), the program provided up to $5,000 in rebates for eligible zero-emission vehicles (ZEVs). Over 546,000 vehicles benefited from this initiative since its inception in 2019, helping more Canadians make the switch to electric vehicles. Now, with funds exhausted ahead of schedule, dealerships face a tough question: How do we maintain momentum on EV sales without the support of these incentives? While the situation is frustrating, it’s not the end of the road. There are ways for dealerships to pivot and continue driving ZEV sales while maintaining strong customer relationships.
What Happened and Why It Matters
Let’s start with the facts. The iZEV program was a cornerstone for Canada’s push toward EV adoption. The rebates made the higher upfront cost of ZEVs more palatable for customers, helping EV sales grow steadily year over year. But demand surged faster than anticipated. By mid-January 2025, Transport Canada announced that the program had run out of funds. This left dealerships with little notice and created confusion for customers who were in the middle of their buying journey. The timing couldn’t be worse. With federal mandates pushing for higher EV sales and growing competition from traditional combustion vehicles, dealers now face the dual challenge of meeting targets while rethinking their approach to selling ZEVs.
How Dealers Can Respond
Even without a federal rebate, there are strategies you can use to keep ZEV sales strong.
Get Creative with Local IncentivesCheck with your provincial and municipal governments. Some still offer rebates or tax breaks for EV buyers. Highlight these programs as part of your sales pitch. Quebec and British Columbia, at least for now, continue to lead the way in offering incentives. If local incentives aren’t available, consider introducing dealership-led perks. Free charging station installations, discounted maintenance packages, or exclusive trade-in offers can provide value to customers in a way that sets your dealership apart.
Shift Inventory and Focus on Value With incentives gone, the conversation around EVs needs to shift toward long-term value. Focus on cost savings from lower maintenance and fueling costs. Highlight features like advanced technology, superior performance, and environmental impact. Now is a good time to review your inventory strategy. Stocking more affordable EV models or hybrids can help fill the gap for budget-conscious buyers. Depending on the dealer, it might make more sense to stock comparably priced ICE’s in higher quantity. Make sure to follow what your customers are telling you.
Train Your Sales Team on New Scripts This is an opportunity to refresh how your team talks about EVs. Instead of leading with rebates, focus on educating customers about the benefits of going electric. Sales scripts can emphasize the practicality of EVs for daily use, total cost of ownership, and even the growing availability of charging infrastructure.
Introduce Flexible Financing Options With Autovance’s powerful tools, you can give your team the power to offer creative financing solutions that ease the upfront cost of EVs. Flexible lease terms, trade-in assistance, and promotions can make a significant difference to hesitant buyers.
Going with the Curve
This is an opportunity for dealerships to switch up the sales strategy and look at where the trends in your area are going. Transparency and empathy go a long way right now. Educate your customers on the situation, and position your dealership as a trusted guide in their EV journey. The loss of the iZEV rebate is no doubt a setback in how sales can position the EV when desking the deal. By focusing on education, creative solutions, and customer-first strategies, dealerships can weather this change and come out stronger.
