Ontario, Canada - Ways to apply $14k MTO rebate

[egolf2017toronto]

My understanding is that there are two ways to use the rebate in a lease scenario:

1) Apply it towards the lease to reduce the lease payments. Dealer takes care of the rebate paperwork.
2) Lease the vehicle for the full amount. Take care of the rebate paperwork myself and get a cheque from MTO.

Option #1 seems easiest. Are there any cons?

 

[johnnylingo]

At first I thought you were talking about Ontario, California and was thinking WTF is an MTO rebate? But obviously you mean Ontario, Canada.

 

[egolf2017toronto]

At first I thought you were talking about Ontario, California and was thinking WTF is an MTO rebate? But obviously you mean Ontario, Canada.

Yes, thanks. I've adjusted the title for clarity.

 

[JoulesThief]

At first I thought you were talking about Ontario, California and was thinking WTF is an MTO rebate? But obviously you mean Ontario, Canada.

Yes, thanks. I've adjusted the title for clarity.

Yes Ca vs CA... heck, just call it Toronto MTO and local province.

 

[Zeuser]

egolf2017toronto, do you have yours yet?

I'm interested in getting one myself but I haven't even seen one, sat in it or tired it.

 

[egolf2017toronto]

Just ordered one today. VW is supposed to finish building my vehicle by end of month and it should be in my hands by August-September. So ordering based purely on online reviews + people's experiences with previous generation.

Are you in Canada too?

egolf2017toronto, do you have yours yet?

I'm interested in getting one myself but I haven't even seen one, sat in it or tired it.

 

[Zeuser]

I'm in the GTA as well. I'm just hesitant to pull the trigger. It would be nice to actually see a Canadian market e-golf, ride in one or even drive one before I commit. I'm in no rush, but I also don't want to wait 3 years to get one... like a Tesla Model 3.

On paper, the eGolf is pretty much what I need. Right price, right range, equipment etc. I've never had a Volkswagen product before. I guess that's the biggest thing holding me back right now.

 

[egolf2017toronto]

Understood. Being an early adopter for this model in Canada I would expect some issues. Hopefully nothing too major. I've decided to lease the vehicle for 3 years so everything is under warranty for the duration of the lease. Very excited to get the car into my hands soon!

After the lease expires M3 will be out, new Leaf will be out, a bunch of decent electric Hyundai vehicles should be out, an EV Mercedes will be released, etc. It will be a much more competitive environment. This reservation and limited supply nonsense will likely go away. Mainstream range will probably be double. So I look at it as an early intro to EVs. Plus who knows what will happen in Ontario after the election next year - may the $14k incentive will be pulled or reduced.

I'm in the GTA as well. I'm just hesitant to pull the trigger. It would be nice to actually see a Canadian market e-golf, ride in one or even drive one before I commit. I'm in no rush, but I also don't want to wait 3 years to get one... like a Tesla Model 3.

On paper, the eGolf is pretty much what I need. Right price, right range, equipment etc. I've never had a Volkswagen product before. I guess that's the biggest thing holding me back right now.

 

[Zeuser]

After the lease expires M3 will be out, new Leaf will be out, a bunch of decent electric Hyundai vehicles should be out, an EV Mercedes will be released, etc. It will be a much more competitive environment. This reservation and limited supply nonsense will likely go away. Mainstream range will probably be double. So I look at it as an early intro to EVs. Plus who knows what will happen in Ontario after the election next year - may the $14k incentive will be pulled or reduced.

I was thinking the same thing. For now I can get that $14K which I'm not sure will still be around after next election, cuz... Wynne sucks and conservatives never liked the incentive program.

In 3 years, hopefully prices will be lower and ranges longer with more competitors in the market and more models.

I too hate the reserve-and-wait business model. Model 3, Bolt, eGolf. argh. Enough! I just want to walk into a dealer and say: "That one right there. I'll take that! I'll pick it up next Monday."

 

[Kosta]

saw a hint that the 2018 eGolf will utilize the better tech batteries almost doubling range .. does not help my 2017 unit, but 98% of my driving can be done with 200 k range ... hope to have mine in a few weeks ..

 

[Zeuser]

My understanding is that there are two ways to use the rebate in a lease scenario:

1) Apply it towards the lease to reduce the lease payments. Dealer takes care of the rebate paperwork.
2) Lease the vehicle for the full amount. Take care of the rebate paperwork myself and get a cheque from MTO.

Option #1 seems easiest. Are there any cons?

1 - They would simply put it as a $12,389 deposit (before tax). The downside is that you really need to make sure they do their math properly. I caught one dealer's quote to be $11,630 for that tax once I calculated backwards from their quote. Basically try to "steal" $759 from me. The other issue is that you're basically spreading out the rebate over your lease term instead of getting it all up front. You may miss out on investing that money and making more money off of it.
2 - This may be a better option if high lease payments aren't an issue. You'd be looking somewhere in the $600-$700 range /month. But if you're smart, you take that $14000 and put into some savings, like a GIC. Don't be tempted to go out and spend that $14,000. Personally I like this better because my lease payment may be in the $600 range but it's only at 0.98%. But I can put that $14,000 into a GIC at around 2% and actually make money on the incentive. I'll probably put it towards some higher yield, higher risk, investements instead. Something in the 6-8% return rate.

Just my personal opinion of course.

 

[egolf2017toronto]

I've ended up going for #1. After some research and a call to Plug & Drive it became clear the two options were very close. The tiny interest currently paying on investments is approximately equivalent after-tax to the VW Canada lease rates.

I will need to fill out the MTO rebate form and provide it to the dealership on delivery. All paperwork is on the purchaser.

 

[Bertbdj]

I've ended up going for #1. After some research and a call to Plug & Drive it became clear the two options were very close. The tiny interest currently paying on investments is approximately equivalent after-tax to the VW Canada lease rates.

I will need to fill out the MTO rebate form and provide it to the dealership on delivery. All paperwork is on the purchaser.

And you will have to find a VW dealership that will do it. I leased one recently, and the dealership and VW Canada would not process the incentive. I had to do it on my own. Which means that only option 2 was available to me. Since the limited supply thing is such an issue, when you have one at your dealership you can't really go anywhere else, so there was no way to find a dealership willing to process the rebate.

Good luck!

 

[Kosta]

saw a hint that the 2018 eGolf will utilize the better tech batteries almost doubling range .. does not help my 2017 unit, but 98% of my driving can be done with 200 k range ... hope to have mine in a few weeks ..

got my 14k in the mail today thanks everyone in Ontario - works out to about 1 cent per citizen.. it only took 4 months

 

[nerk]

saw a hint that the 2018 eGolf will utilize the better tech batteries almost doubling range .. does not help my 2017 unit, but 98% of my driving can be done with 200 k range ... hope to have mine in a few weeks ..

got my 14k in the mail today thanks everyone in Ontario - works out to about 1 cent per citizen.. it only took 4 months

You're welcome!, I have a feeling they'll change the program before I get mine ... Still waiting on delivery...

heard rumours changes are coming Jan 1st... Hope its fake news...

 

[flyboy320]

heard rumours changes are coming Jan 1st... Hope its fake news...

:?:

 

[Zeuser]

heard rumours changes are coming Jan 1st... Hope its fake news...

:?:

That's from BC. They'll be applying the rebate after taxes instead of before like they currently do. Makes sense. In Ontario, the rebate is after taxes.

Ontario won't change the program, except make it even better than now, in an election year. No way the Liberals are going to reduce or eliminate the rebate before June (Ontario provincial election). What you have to worry about is after June. The conservatives, likely winners of the election, could axe the rebate. They never liked that rebate to begin with.

 

[Kosta]

the rebate is relative to removing a gas vehicle from the road - all good - once prices drop like all electronics do the more they are accepted the rebate will diminish .. the optics of giving someone 14k off their tesla $150k vehicle is a 10% rebate roughly , the 14k off my egolf was a 30% rebate - hope it is there for a year or two more

 

[nerk]

heard rumours changes are coming Jan 1st... Hope its fake news...

:?:

That's from BC. They'll be applying the rebate after taxes instead of before like they currently do. Makes sense. In Ontario, the rebate is after taxes.

Ontario won't change the program, except make it even better than now, in an election year. No way the Liberals are going to reduce or eliminate the rebate before June (Ontario provincial election). What you have to worry about is after June. The conservatives, likely winners of the election, could axe the rebate. They never liked that rebate to begin with.

I was also expecting things to change after the conservatives win the next election... Like I said, its only rumours I heard, no details around it... And its coming from my EV friend/coworker who knows someone on "the inside" that changes are coming, take it with a grain of salt... I don't mean this to be a "sky is falling" scenario... I just hope its false and only time will tell...

Also regarding the price change... I ordered mine with leatherette anyhow... so I guess no changes for me...


-- Patiently waiting for delivery since Aug 4th 2017 (I was just thinking, for fun we should all have something like this in our signatures :lol: )

 

[Zeuser]

the rebate is relative to removing a gas vehicle from the road - all good - once prices drop like all electronics do the more they are accepted the rebate will diminish .. the optics of giving someone 14k off their tesla $150k vehicle is a 10% rebate roughly , the 14k off my egolf was a 30% rebate - hope it is there for a year or two more

The rebate in Ontario is maximum 30% of MSRP or $14K, after taxes, for vehicles that qualify for the full rebate. Vehicles above $150K don't qualify (the high end Teslas).

The incentive program is to continue until 5% of vehicles sold in Ontario are "green vehicles". That means plug-in hybrid (PHEV) or battery electric (BEV). We're currently in the low 3% EV market penetration.

Again, Liberals won't kill it in an election year. It's after June 2018, if the conservatives get elected, that you have to worry about it.