The automotive industry is evolving at an incredible pace from year to year, and there are numerous examples demonstrating this trend. This is particularly evident this year compared to 2024, especially at concerns electric vehicles. Indeed, at the beginning of January, the federal iZEV program, which previously offered up to $5,000 in rebates for the purchase or lease of an electric vehicle, was eliminated. At the same time, in Quebec, incentives decreased from a maximum of $7,000 to a total package of $4,000 for this year.
What's more, the Quebec government even temporarily suspended its program in January, causing consternation throughout the industry. However, that suspension was temporary, as the program resumed on April 1st—we'll revisit this shortly.
To illustrate where we are now when it comes to electrified vehicles, let’s look at the Mitsubishi Outlander PHEV. In 2024, that plug-in model benefited from a total rebate of $10,000 in Quebec — $5,000 federal and $5,000 provincial. This year, the federal rebate has ended. In Quebec, the maximum rebate dropped from $5,000 to $2,000 for models equipped with a battery larger than 15 kWh.
Why specifically highlight the Mitsubishi Outlander? Because it’s particularly popular among Quebec and Canadian consumers. This was especially true last year when Mitsubishi set a sales record in Canada for the second consecutive year with this vehicle, achieving 14,290 units sold — 44 percent more than in 2023.
Lower rebate, but...
This means that for an Outlander PHEV, the total rebate currently available is $2,000, compared to $10,000 at the same time last year.
At first glance, it might seem that consumers have lost $8,000, or at least can no longer benefit from such a significant price reduction. However, another factor to consider is interest rates. The reduction in interest rates year-over-year means that a buyer in spring 2025 is offered a deal just as appealing as one in spring 2024.
Let’s examine this in detail.
Last year, the Mitsubishi Outlander PHEV ES was priced at $50,123 (figures provided by Mitsubishi). At the top end, the Noir edition was $61,623. This year, the respective prices for these two variants are $50,623 and $62,523.
Given that the rebate difference between last year and this year is $8,000, one might expect substantial monthly payments over an 84-month financing term with no down payment. However, due to the significant reduction in interest rates from one year to the next, the resulting difference is negligible — just $7 per week.
Now, let’s analyze the impact of interest rates. Last year, under similar loan terms, the interest rate was 6.49 percent. This year, it has dropped considerably to 2.99 percent for the same transaction.
Thus, despite the substantial $8,000 loss in subsidies ($5,000 federal and $3,000 provincial), the significant reduction in interest rates means weekly payments increased from $141 in 2024 to just $148 this year. Monthly, this represents an additional cost of only $28 to $35, depending on the number of weeks per month. Not to mention that fuel savings, especially if you use gasoline, can also influence your decision.
One might initially assume the reduction in subsidies had a major impact, but as you can see, due to lower interest rates, the actual difference is minor.
This clearly demonstrates the importance of performing thorough calculations and being well-informed about financing terms, as appearances can be deceiving, and as previously stated, conditions change rapidly.
It's also worth noting that at Mitsubishi—as is the case with some other automakers—existing customers benefit from even lower interest rates. With rates as low as 1.49 percent for returning clients, the proposition becomes even more appealing. Furthermore, given anticipated increases in used car prices due to the ongoing pricing battles, this could represent additional advantages when trading in your vehicle.
Always remember to do your homework thoroughly.
Also, note that the first increase in average used vehicle prices in the United States was recorded in March, indicating potential further implications.
List of Mitsubishi dealers in Quebec:
St-Jérôme Mitsubishi
Blainville Mitsubishi
Repentigny Mitsubishi
St-Léonard Mitsubishi
St-Eustache Mitsubishi
Terrebonne Mitsubishi
Giroux Mitsubishi
Hgregoire Mitsubishi Laval
Sorel-Tracy Mitsubishi
Brossard Mitsubishi
Valleyfield Mitsubishi
Montréal Mitsubishi
Jean Dumas Mitsubishi
Saguenay Mitsubishi
St-Hyacinthe Mitsubishi
Boucherville Mitsubishi
Maison Mitsubishi
Rallye Mitsubishi
Coupal Et Brassard Mitsubishi
Action Mitsubishi
Rouyn-Noranda Mitsubishi
Joliette Mitsubishi
Quebec Mitsubishi
Paquet Mitsubishi
Sherbrooke Mitsubishi
Trois-Rivières Mitsubishi
Beauce Mitsubishi
Victoriaville Mitsubishi
Ste-Foy Mitsubishi
Rimouski Mitsubishi
Gaspésie Mitsubishi
JD Mitsubishi
Rivière-Du-Loup Mitsubishi