CAA Logo

Electric Vehicles

Cost of owning an electric vehicle

Electric vehicles are affordable

According to CAA's survey of 16,000 Electric Vehicle (EV) drivers, EV owners said their EV was more affordable than their gas vehicle. There are many ways EVs can be more affordable than a gas-powered vehicle.

Where you'll save money

Most EVs take less than five years to break even. With gas-powered vehicles, we're in the habit of separating purchase price from operating cost. But to objectively compare the prices of gas-powered vehicles with those of EVs, we have to look at both purchase price AND operating cost.

There are three ways you can save with an EV in the long run:

Reduced fuel costs

The average Canadian spends close to $3,000 on gas every year. A BEV doesn't require gas to roll, it requires electricity. The cost to fuel the average BEV over the course of a year is only a few hundred dollars.

Less maintenance

EV owners don't just save money on gas, they also spend less time at the shop, since EVs require less frequent and less complicated maintenance than conventional gas vehicles. The average BEV owner saves about 40% to 50% in maintenance compared to a gas-powered vehicle.

Cheaper insurance

Some insurance companies, like CAA, offer incentives and discounts for people who have electric or hybrid vehicles.

Calculate car costs

Compare the operating and ownership costs of thousands of vehicles on the road in Canada, including EVs.

Go to CAA Car Cost Website

Life-cycle costs

In Canada, most of our electricity is generated by low-emitting hydro and nuclear sources. That means EV ownership can help reduce your personal vehicle greenhouse gas emissions by more than 60%. Not to mention, this can result in savings of nearly $3,000/year on fuel.

While initial manufacturing emissions are higher for EVs, once on the road, EV emissions are so low that within 2 years gas-powered vehicles catch up and surpass the emissions from an EV.

Purchasing an electric vehicle

According to CAA's survey of 16,000 EV drivers, the vast majority (92%) of drivers purchased their EV new, while 7% leased their EV. As with any vehicle purchase, the choice to buy used, new or lease is an individual decision based on preference and financial situation.

A used EV may be for you if you are looking to save money on your initial purchase. Shopping for a used electric vehicle is a lot like shopping for any other used vehicle but remember that this is a new market – supply will continue to grow as more hit the road. CAA's survey of 16,000 EV drivers revealed that 17% of buyers acquired their EV used.

Plug-in America, a U.S. organization specializing in electric mobility, performed a detailed analysis of the electrical components of used vehicles and came up with a simple conclusion: if the battery is in good shape, buying a slightly used electric car is like buying a new car for less money, taking depreciation into account. The first wave of EVs had a shorter range, making them not suitable for all uses. But they might be a good solution for city dwellers, or suburban families who are looking to buy a second vehicle.

Tips for buying used

  • EV batteries degrade over time, which can reduce driving range. Ask the seller for details on the battery, like health, range, and age.
  • Battery replacements and repairs can cost thousands of dollars. Check if the used EV battery is still under the manufacturer warranty (usually 8-10 years).
  • Compare the capacity or driving range of a full charge with a new equivalent vehicle, this can show how much the battery has already degraded. The more range that has already been lost, the closer a battery is likely to be repaired or replaced.
  • As with any purchase, it's important to evaluate the vehicle's condition. Consider purchasing an independent pre-purchase inspection by a company specializing in EVs. Request a service record, which can be obtained from the dealership or from services like CARFAX.

What EV incentives are available in Canada?

Electric vehicle (EV) incentives in Canada vary by province and are subject to change. Program availability, eligibility requirements, and rebate amounts depend on provincial policy and funding and may change without notice.

The information below reflects the current status of provincial EV rebate programs. Motorists should always confirm details directly with your province of residence before purchasing a vehicle.

Incentives will be available to Canadians who buy or lease (12 months or more) new eligible EVs between February 16, 2026, and March 31, 2031 (subject to funding availability).

  • Up to $5,000 for battery-electric and fuel cell electric vehicles
  • Up to $2,500 for plug-in hybrid vehicles

 See Transport Canada’s Electric Vehicle Affordability Program for eligible vehicles and more details.

Visit Go Electric to learn more

Quebec’s Roulez vert electric vehicle rebate program reopened on 1 April 2025 with revised financial assistance amounts.

Key program details:

  • Eligibility depends on vehicle type and program criteria
  • The program is scheduled to end on 31 December 2026

The Government of Quebec maintains a list of eligible new electric vehicles: View eligible EVs under the Roulez vert program

Learn more about incentives available in Quebec

Prince Edward Island’s electric vehicle rebate program has been on pause since 15 April 2026.

Learn more on the Prince Edward Island website

Manitoba’s electric vehicle rebate program has been extended.

The Manitoba Electric Vehicle Rebate Program provides rebates of up to $4,000 on the purchase of a new eligible electric vehicle.

  • $1,000 to $4,000 on leasing an eligible electric vehicle.
  • $2,500 on the purchase of pre-owned eligible electric vehicles.

Find the list of eligible vehicles at https://www.manitoba.ca/lowercosts/evrebate/eligible-vehicles.html

Learn more about incentives available in Manitoba

What should EV buyers know before purchasing?

Provincial EV incentive programs can change at any time due to policy decisions or funding availability. Incentives may be reduced, paused, or discontinued with little notice.

Before purchasing an electric vehicle, CAA recommends that drivers:

  • Confirm eligibility requirements
  • Verify program status and timelines
  • Understand when and how rebates are applied

Incentives can help reduce upfront costs, but they should be considered alongside overall ownership costs, charging access, and driving needs.