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The government wants you to own an electric vehicle — but who can even afford them?

The government wants you to own an electric vehicle — but who can even afford them?

CBC
Wednesday, February 01, 2023 07:53:14 AM UTC

This is the first in a three-part series, The Real Cost of Electric Vehicles, diving into the future of electric vehicles and how electrification will impact Windsor-Essex. Tomorrow, we'll look at the environmental impact of the change, and on Thursday, the impact on jobs in Windsor-Essex.

As both the government and automakers push to make car owners transition to electric vehicles (EVs), astronomical prices threaten to make that out of reach for many Canadians. 

That means while the federal government wants every passenger vehicle sold in Canada to be electric by 2035, unless the prices become more reasonable for the average consumer, it might not be a realistic expectation. 

James Godfrey, general manager at Eastway Toyota and Lexus of Windsor, says electric vehicles — a promise on the near horizon of buyers everywhere — are sold at much higher price points than internal combustion engine vehicles or hybrids. And due to supply chain issues, he says, vehicle prices in general have seen a big jump in the last few years.

Conversations with customers on a budget are "real tough," he says in front of a hybrid at his east-end dealership. That's especially true if they're going electric. 

While prices for all vehicles are up across the board, Godfrey explains that for a fully electric vehicle at his dealership, in most cases, customers would be looking at prices from $55,000 and up.

Prices of EVs currently available for purchase in Canada can range from $39,498 to $189,000, according to the Canadian Automobile Association.

Mark Stewart, chief operating officer for Stellantis North America, told CBC "the technology is expensive." He said that on average, an electric vehicle is 40 to 45 per cent more expensive than a classic internal combustion engine powertrain. 

For those looking for a lower price point, Godfrey says, "We're moving people off of electric vehicles onto either hybridized vehicles or straight up small fuel-efficient gasoline-powered engines."

That's not just because the cost is high. Supply is thin too. Godfrey says he probably won't actually get fully electric vehicles at his dealership until 2024, once again citing supply chain issues. 

There are long wait lists for electric vehicles across the board, something Prime Minister Justin Trudeau acknowledged during a visit to the Windsor Assembly Plant in January. 

"We know that the demand is super high," Trudeau said. 

"We're going to continue to make sure we're investing in facilities that we've been investing in over the past year and seeing big investments come in to Canada in the zero emission ecosystem to make sure we're able to meet the rising demand and the excitement Canadians have for electric vehicles."

WATCH | James Godfrey describes 'tough' conversations he has with people looking to buy vehicles off his lot:

Read full story on CBC
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