How to buy an eco-friendly car

“Green” cars can cut your carbon foot print, offering a reliable alternative to traditional gas guzzlers that rely on polluting fossil fuels. And thanks to the ever-increasing demand for eco-friendly cars, you likely won’t be stuck choosing the first car you find. But watch out — it might get expensive.

What makes a car eco-friendly?

A green car is a car that gets more kilometres to the gallon and emits less pollutants than a conventional gas or diesel vehicle, according to the Environmental Protection Agency (EPA).

Many provinces in Canada have minimum emissions requirements, but green cars exceed the minimum threshold or cut exhaust emissions entirely. To do this, they either use electric or hybrid systems.

• What is a hybrid car?

  Hybrid vehicles use both gas and electric engines to power the car. Unlike electric cars, they don’t need to be plugged in to recharge because the operation of the gas engine creates engine that charges the battery. Some also utilize deceleration when braking to charge the electric engine.

  The onboard computer in the car switches between the two engines to maximize efficiency. For example, the electric engine switches on when the car is idle and during acceleration, but while cruising, the gas engine takes over.

• What is an electric car?

  Electric cars run solely on a rechargeable battery – no fuel is involved. They’re charged at charging points located either at home (perhaps in the garage) or in public places, and some electric cars also utilize the deceleration process to charge the battery.

  Because they lack a gas engine, electric cars have no fuel tank or exhaust pipe and never need an oil change. However, they need to be recharged — usually every 50 to 100 miles — which can only be done in certain locations. The good news? There are more than 31,100 alternate fueling stations available in both the US and Canada.
  

  Click here to visit the CAA website in order to find a charging station near you.

How can I finance an eco-friendly vehicle?

If you’ve decided on going green but aren’t sure how you can finance your car purchase, you have options.

• Car loan. Green cars are like any other car, and you’ll likely qualify for a car loan from a lender. The benefit? Some banks and credit unions offer interest rate discounts for green car purchases.
• Home equity loan. If you’ve built up enough equity in your home, you could use that money to finance your green car.
• Personal loan. A personal loan can be used for just about anything. So if you have good credit, you may be able to finance your car without using it as collateral.

Browse financing options for an eco-friendly car

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CarsFast Car Loans		$500	4.90% to 29.90%	12 months - 8 years	300	Gross income of $1,800/month, 3+ months employed	Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Car Loans		$500	0% to 29.99%	3-96 months	300	Employed for at least 3 months, min. income of $1,800/month	Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.	Go to site More Info	Compare	loading Fetching your data...
Car Loans Canada		$7,500	3.99% to 29.95%	12-84 months	300	3+ months employed, min. income of $2,000/month	Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.	Go to site More Info	Compare	loading Fetching your data...
Canadian Auto News		$7,500	4.49% to 29.90%	12-84 months	300	3+ months employed, min. income of $2,000/month	Answer a few simple questions to get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.	Go to site	Compare	loading Fetching your data...
Canada Auto Finance		$500	4.90%-29.95%	3-96 months	300	3+ months employed, min. income of $1,500/month	Canada Auto Finance is a broker that connects borrowers with partnered local lenders. Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.	Go to site More Info	Compare	loading Fetching your data...
Carloans411 Car Loans		$500	1.90% to 19.99%	Up to 72 months	300	Employed for 3+ months, min. income of $1,600/month	Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.	Go to site More Info	Compare	loading Fetching your data...
LoanConnect Car Loans		$500	10.00% to 46.96%	6-60 months	550	No min. income requirement	Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.	Go to site More Info	Compare	loading Fetching your data...
Fairstone Secured Personal Loan		$5,000	19.99% to 23.99%	3-10 years	560	Have an established credit history and own your home	Fairstone offers secured personal loans up to $35,000.	Go to site More Info	Compare	loading Fetching your data...

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How much do green cars cost?

Green cars are more expensive than gas vehicles. An electric hatchback may sell for $40,000, and mid-size sedan hybrids go for around $30,000. Comparable gas models for both might cost as low as $20,000. Here are a few popular fully electric and hybrid models.

What are the benefits of an eco-friendly vehicle?

Eco-friendly vehicles have a range of benefits for both the owner and the community. Here are some reasons to drive a green car:

• Fewer emissions. Green cars have low-exhaust emissions, reducing the amount of carbon released into the atmosphere.
• No- or low-gas costs. While hybrids require gas, they consume much less than regular cars. Electric cars don’t use any gas but do require electricity to recharge.
• Cleaner cities. Car emissions are a major contributor to poor air quality in cities. By driving a vehicle with low emissions, you won’t contribute to the smog in your area.
• Less noise. Electric engines are quieter than gas engines. This reduces the amount of road noise in cities.
• Tax credit. When you buy a hybrid or electric car, you could be eligible for a tax credit through your provincial or federal government .
• Increasing consumer demand. By generating demand for electric vehicles, you’re helping to improve the technology and bring down the price. Doing so makes them more attractive to others, creating a cycle of benefits for everyone.

If you’re buying a fully electric car, then your vehicle won’t produce any emissions. The benefits with hybrids may not be as clear if the manufacturer reports fuel economy that’s unattainable in your situation.

Research prospective cars before you commit to buying one by looking at user reviews and and other independent, unbiased articles about emissions and fuel economy on most new vehicles.

An inside look at the hybrid engine of a Toyota Prius C

A few hybrid and electric cars to consider

Here are some of the most eco-friendly cars found on the road across Canada:

• Toyota Prius. An early hybrid and perhaps one of the more common green cars. They come as a medium sedan or hatchback and are similar to a Toyota Corolla.
• Nissan Leaf. A fully electric hatchback with a small solar panel for internal accessories. It can do a partial recharge in 30 minutes from specific quick-charge points.
• Mitsubishi Outlander PHEV. This one is for the whole family. A hybrid SUV which has been reported to get up to 74 MPG from its electric and gas engines.
• Ford C-Max Energi. One of the cheaper hybrids, the rear seat battery may make it cramped for your passengers. However, its performance makes up for it if you only have occasional guests.
• BMWi3. A fully electric hatch for city drivers who appreciate luxury German engineering.
• Tesla Model S. Tesla only makes electric cars. They aren’t cheap, but they’re designed to perform like a sports car. If you want to drive an uncommon car, the Model S should put you in the spotlight.

What to watch out for

• The cost. Green cars are much more expensive than a comparable gas vehicle. Even considering the savings on gas, oil and maintenance, it would take a few years to offset the upfront expense.
• The limited driving range. Range refers to how far the vehicle can travel before it needs to refuel. Compared to gas vehicles, electric cars have a very restricted range.
• Limited chances to power up. Not all gas stations have recharge stations, such as your home or a public recharge station.
• It’s a new technology. Green car technology is still developing and working out the kinks.

4 tips for fuel-efficient driving

Even if you can’t afford to buy a new car right now, you can substantially reduce your vehicle’s emissions just by changing your behavior as a driver. Here are some handy green driving tips:

• Accelerate slowly and smoothly. Engines use the most fuel when starting up or accelerating. Try to limit rapid or erratic acceleration.
• Anticipate traffic conditions. The most efficient way to drive is to maintain a fairly constant speed. Rapid slowing and accelerating wastes fuel. Anticipate the conditions ahead to minimize the amount you need to slow down or speed up. And of course, don’t be afraid to use cruise control on the highway.
• Remove unnecessary equipment. Extra weight and accessories decrease the efficiency of your vehicle. Roof racks cause drag and tools add extra weight. If you don’t regularly use or need them, take them off.
• Maintain your vehicle. Basic maintenance such as checking tire air levels and engine oil is an easy way to keep your car running efficiently. Performing routine services will also help identify problems to keep your vehicle operating optimally.

Bottom line

Green cars are becoming an increasingly better option for those living in cities. If you’re concerned about your vehicle’s carbon emissions and its effect on the environment, then consider getting an eco-friendly alternative. Be aware of the additional upfront cost and limitations before you commit, and compare your financing options when you’re ready to buy.

Frequently asked questions

• What is MPGe?

  MPGe stands for “miles per gallon of gasoline-equivalent.” This term is used by the U.S. Environmental Protection Agency (EPS) and car manufacturers to compare energy consumed by electric and hybrid vehicles with gas-powered vehicles. In Canada, the fuel efficiency of vehicles is often stated in terms of the number of Litres required to drive 100 kilometres (L/100km).

• Is a green car worth the investment?

  It depends. If you’re able to handle the high upfront purchase price, then you’ll likely be pleased with how far green cars have come in the past few decades. In addition, you’ll be making it easier for manufacturers to reinvest in the technology, lowering the price and making it more affordable for everyone down the road.

  If you don’t think you can handle high monthly payments from a car loan, it might be best to hold off on such a large purchase and instead follow our green driving tips listed above.

• Should I choose a hybrid or an electric car?

  The choice really depends on how you plan to use your car. If you’re in an area that has plenty of charging stations and you drive short distances, an electric car is certainly a greener option than a hybrid. If you’re afraid you might run out of a charge on long drives or don’t have many charging stations in your area, a hybrid will be the better option for your needs.

• Is an electric car truly emissions-free?

  As far as actually emitting fumes, yes, an electric car is emissions-free. However, if coal-powered electricity is used to charge the car, then it is still responsible for carbon emissions. Electric cars can only be truly emissions-free if a renewable source of electricity is used to charge them.

  In addition, the production of an electric car will consume more fossil fuels on average than a gas-powered vehicle. This may make some environmentally-conscious drivers wary, but this initial pollution is outweighed by the lowered lifetime emissions of an electric battery. Studies have found that electric cars produce 80% less emissions than equivalent gas-powered cars.

  Overall, an electric car will still produce emissions – but this doesn’t mean that it’s not worth it! You’ll still be making huge strides in reducing your carbon footprint when driving an electric vehicle.