Up to $2k rebate for efficient cars (not just hybrids) in CDN budget - guzzlers taxed

[Mike T]

The 2006 smart fortwo cdi is eligible for $2K rebate. For emission law reasons, the importer is selling 2006 models only this year (there are still 1400 2006 models to last until the fall, when the 2008 gasoline model arrives).

At a combined rating of 4.2 L/100 km, it's maxxing out at $2K.

Maybe I should buy another one.....

[Peakster]

I can see one drawback with the $2,000 incentive: salespeople will be less reluctant to negotiate the sticker price because "hey, you'll get $2,000 back from the government anyway". Remember, government money is really our money to begin with.

[Mike T]

I doubt that would be an issue in most cases. Just as it wasn't when the GST rate was reduced a while back.....I'd rather have that $2K as a starting point than not. The entire profit margin on a base model smart fortwo is more or less $2K, so you'd not do any better than that anyway

[MetroMPG]

Originally Posted by Mike T

The 2006 smart fortwo cdi is eligible for $2K rebate.

Several '06 VW model diesels (if you can find one) are eleigible for rebates also. If you can find an '06 Insight, it also qualifies.

Still no definitive answer on whether SUV's are considered "trucks" under the guzzler levy. Several media stories are leading with the line that the government wants you "out of your Hummer", but I'm not so sure.

[SVOboy]

Does this mean darin will be insight shopping?

[MetroMPG]

Naah. The Blackfly is good for another 15 years at least

[MetroMPG]

I love this: the new rebate just made a new base Yaris cheaper than a new base Aveo!

Admittedly the Aveo comes with more standard stuff, but with the additional fuel saved, you can option out the Yaris and still come out ahead. (Not to mention reliability & depreciation considerations too.)

My hands - I rub them together in glee!

I've had a hate-on for the ridiculously underperforming Aveo ever since it was introduced, and I really hope this new rebate spurs the manufacturers to tweak their models to make them more efficient in this market (Honda could probably squeeze the Fit into rebate territory with a FE transmission option alone.)

Toyota Yaris

MSRP before rebate:

$13,800 - base 3-door hatch
$14,995 - base 5-door hatch

source: http://www.toyota.ca/cgi-bin/WebObje...124060e%2ehtml

After rebate:

$12,800 - base 3-door hatch
$13,995 - base 5-door hatch

Chevrolet Aveo

MSRP - (doesn't qualify for rebate)

$12,995 - base 5-door hatch

source: http://gm.ca/english/vehicles/chevrolet/aveo/index.jsp

[MetroMPG]

Another thought: the rebate may drive prices down for the used (well, "nearly new" slightly used) market for efficient models that qualify for the rebate.

[SVOboy]

Is there any way to get the rebate for a car purchased in the last year or something such?

[MetroMPG]

Only new, unregistered 2006 & 2007 m.y. vehicles qualify.

I'm sure there are more than a few disappointed people who recently bought eligible cars...

EDIT: just as I'm sure there are some peope rushing out to buy that guzzler today that they were considering - because the guzzler tax does not apply to vehicles currently in stock at dealerships as of Mar 19/07.