The New Car Dealers Association of B.C. is calling on the federal government to ensure dealerships receive prompt reimbursement for electric vehicle rebate claims submitted through the Electric Vehicle Affordability Program.
Under the program, dealers provide eligible consumers with federal EV incentives at the point of sale and then seek reimbursement from Transport Canada. While dealerships continue to support the program’s goal of improving EV affordability, the association said delayed payments are creating financial strain.
“Dealers are proud to help Canadians access electric vehicle incentives and support the transition to lower-emission transportation,” said Blair Qualey, President and CEO of the New Car Dealers Association of B.C, in a statement. “However, the program relies on dealerships advancing rebate funds on behalf of the federal government. When reimbursement timelines become prolonged or uncertain, dealers are effectively financing a government program with their own capital.”
The association said some dealerships have hundreds of thousands of dollars tied up in outstanding claims, creating cash-flow challenges in an increasingly competitive retail environment.
“The solution is straightforward,” said Qualey. “Dealers need confidence that valid claims will be processed and paid promptly. The federal government has asked dealers to serve as the delivery mechanism for this program, and that partnership only works when reimbursements flow back to dealers in a timely and reliable manner.”
The association said the EV Affordability Program remains an important tool for supporting EV adoption, particularly as affordability remains a major factor in vehicle purchasing decisions.
The NCDA said it hopes the issue can be resolved quickly, noting that many dealerships are small family-run businesses that may struggle to absorb prolonged carrying costs.
“Participation in this program is voluntary,” said Qualey. “Dealers have stepped up because they believe in helping consumers access these incentives. But if dealers are left carrying large unpaid balances for extended periods, some may have to reconsider their participation. That would ultimately limit consumer access to the program and undermine the government’s own EV adoption objectives.”
The association said it will continue working with federal officials and industry partners to improve the program’s sustainability for both consumers and dealers.
