Apply Now

Best Hybrid Cars in Canada 2021

Loans Canada: The Country's Best Loan Comparison Platform

Best Hybrid Cars in Canada 2021

Written by Chrissy Kapralos
Fact-checked by Caitlin Wood

Best Hybrid Cars in Canada 2021

Categories

Auto Financing Car Loan Hybrid Car

Climate change has increased in the last decade, but so have Canadians’ efforts to tackle it. Whether it’s by recycling, consuming less meat, or conserving water and energy, there are many ways to take an active role in caring for the environment. Electric and hybrid cars have become an increasingly popular transportation choice to reduce one’s carbon footprint. 

An electric vehicle (EV) uses an electric motor instead of an internal combustion engine and is powered by electricity from the electrical grid. Running on electricity, EVs do not emit exhaust and do not use gasoline. This makes them an environmentally-friendly choice for transportation, as their carbon footprint is much lower than vehicles that run on gas. 

Hybrid vehicles offer the best of both worlds. With at least one electric motor, hybrid vehicles also have a gasoline engine, and both engines can be used interchangeably. In other words, hybrids can be powered by both gasoline and electricity. Let’s take a deeper look at the benefits of having a hybrid car, important things to consider before buying one, the best hybrid car models, as well as financing options for hybrid cars.

Buying a car? Watch out for lemon cars

Benefits of Choosing a Hybrid Car

There are many benefits to choosing a hybrid car as your primary transportation, including:

  • Less pollution – Running on both gas and electricity, hybrid cars are cleaner energy-wise and emit less pollution than cars powered only by gas. 
  • Less fuel-dependent – Being overall powered by only a portion of gas, hybrid cars contribute to the country’s reduced dependence on oil. Hybrids also help balance the cost of gasoline. 
  • Efficient engines– Hybrids tend to have more efficient gasoline engines because they are not solely powered by gas. This allows for a smaller and lighter gas engine. 
  • Higher resale potential – Generally, the resale value of a hybrid is higher than that of a gas-only vehicle. This is because hybrid versions of popular vehicles are in high demand; so, you are likely to recover more of your original investment if you were to trade in your car or resell it. 
  • Regenerative braking – Energy produced by hybrid cards is saved and fed to their batteries. This increases the charge in the electric motor, extends brake life, and reduces overall fuel consumption. 

Learn how to budget for a car.

Government Incentives For Buying a Hybrid Vehicle

One of the most attractive benefits of owning a hybrid vehicle is the incentives the Government of Canada offers.

Keep in mind that the incentives offered by the government for regular hybrids have unfortunately expired, vehicles with plug-in technology are still eligible for federal tax credits. Some provinces offer sizable rebates as well. Although most incentives are for electric vehicles, there are still incentives of $2,500 or $5,000 rebates for a few hybrid models, including:

  • Chrysler Pacifica Hybrid (2017, 2018, 2019 & 2020)
  • Honda Clarity In-Plug Hybrid
  • Subaru Cross-Check Plug-In Hybrid

For more information about the years and models of hybrids eligible for rebates, visit Transport Canada’s website

Things to Consider When Getting a Hybrid Car

Despite all the benefits listed above, there are a few other factors to consider before making a decision to buy one, including the cost, maintenance and overall performance, and energy consumption. 

  1. Cost – Most hybrid and electric cars are significantly more expensive than regular, gas-only vehicles. However, if the initial cost is less of a concern for you, you might feel good about spending a little bit of extra money on your hybrid vehicle. 
  2. Maintenance – Since hybrids are less common than other vehicles, there are fewer mechanics with the knowledge and equipment to repair them. So, they are usually more expensive to repair
  3. Performance – Hybrids are built to save energy; so, speed and performance aren’t the top priority. Speed and acceleration are usually not as high in hybrids as other cars, so you need to consider whether or not this is a drawback before deciding to purchase a hybrid vehicle. 
  4. Energy consumption in charging – To charge your electric vehicle, you will consume a lot of energy from the electrical grid. This can result in higher electricity bills for your household. Some provinces have time-of-use energy pricing, meaning the energy rates are cheaper depending on the time of day you consume energy. For example, time-of-use pricing in Ontario would make evenings and weekends the cheapest time of day to charge your hybrid car.
  5. Battery Replacement – Eventually, most hybrids will require you to replace their battery, which can be quite expensive. 

Car Loan Calculator

Credit Score

Poor Good Excellent
Number of Payments
0
Monthly Payment
0
Total Interest
0
Total Payment
0


View all tools

Best Hybrid Cars in Canada

There are many hybrid models for you to choose from. Let’s take a look at some of the models below. 

Honda Insight

The Honda Insight is a popular hybrid for its stylish exterior, not common for other hybrid vehicles. With optimal fuel efficiency and comfortable seats, the Honda Insight is a popular choice for hybrid vehicles. 

Toyota Prius

A well-known model, the Toyota Prius is a classic car. Its hybrid version features a hatchback style and safety features such as forward-collision warning and automated emergency braking. New models start at around $22,000 USD.

Chrysler Pacifica Hybrid

This hybrid has a few models from 2018, 2019 and most recently 2020. With ample room for cargo, this minivan can seat 7 people and has comfortable, high-quality interior seats. New models start at $46,000 USD; however, one can find used models at some car dealerships. The best part about the Pacifica Hybrid is that it is eligible for tax rebates from the Government of Canada. 

Honda Accord

Medium-sized and fuel-efficient, this hybrid offers optimal space for passengers and cargo, as well as updated tech features. If you’re looking to buy it new, the Honda Accord Hybrid starts at around $36,000 USD.

Hyundai Sonata

With a larger battery, the Hyundai Sonata hybrid has less room for passengers and cargo. What it lacks in space is made up for with efficiency, as you can drive fully electric for 47 KM with 39 mpg in combined fuel economy. New models start at around $31,600 USD.

Toyota RAV4

With a variable transmission and modern safety features, the Toyota RAV4 has a stylish aesthetic, along with efficient fuel. New models start in between $32,000 and $42,000 USD. 

Check out our list of cars with high trade-in value

Ways to Finance a Hybrid Car

If you are unable to purchase a hybrid car up-front, don’t worry! There are plenty of financing options available to you. Let’s take a look at some of them. 

Car Loan From a Bank 

If you have a bit of capital, steady income and a decent credit score, your best bet on financing is to go with a car loan from a bank. Car loans are ideal because they tend to have the lowest interest rates, quick application processes, and a downpayment of 10%. It’s important to note, however, that car loans have liens on the titles until they are paid in full. This means that you don’t own your hybrid until you have paid off the entire balance. Unfortunately, this financing option is often unattainable for drivers with bad credit

Personal Loan from a Bank

If your credit rating isn’t the greatest, you may have better luck securing a personal loan than a car loan. The great thing about a personal loan is that you can spend the funds however you’d like, even if the expenses are not directly related to your car. Secured loans, or loans with collateral, also tend to have reasonable interest rates. 

Find an Alternative Lender

Some borrowers simply do not have the requirements that banks insist on before lending money. In these cases, an alternative lender may be of service. They tend to offer a variety of loans, both personal and car loans. The main drawback of borrowing from an alternative lender is that the interest rates are higher; however, this may be worth the cost if your credit isn’t good enough to secure funding from a bank. 

Check out how you can qualify for a car loan in Canada

Directly From Your Dealership 

If you have bad credit and are having trouble obtaining a car or personal loan from a bank, there are a couple of approaches you can take to finance your hybrid car. You could wait for your credit rating to go up; however, this can take a lot of time. Alternatively, you can look to a dealership for financing options, many of which specialize in loans for drivers with bad credit. You may be faced with higher interest rates, but not much more than what any alternative lender would offer. 

Learn how you can get the best rate for your car loan

Looking For The Right Auto Financing?

AmountInterest Term(Months)
Loans Canada Logo - Bad Credit Loans Canada$500 - $50,000Up to 46.96%12 - 84Learn More
Canada Drives$500 - $35,000$29.99% – 46.96%9 - 60Learn more
SkyCap Financial$500 – $10,00012.99% – 39.99%9 - 36Learn more
Carloans411$5,000 - $40,000Varies12 - 72Learn more
Car Loans Canada$7500 - $59,9953.95% +12 -96Learn more
Canada Auto Finance$5,000 - $45,0004.90 % - 29.95%36 - 72 Learn more
Eden ParkVaries11.9% +12 - 84Learn more
Splash Auto Finance by RifcoUp to $50,000Varies12 - 84Learn more

Final Thoughts

Hybrids represent advancement to a cleaner, carbon-free future. With tax incentives and a variety of financing options, owning or leasing a hybrid can be attainable, and can benefit your wallet in the long run with the savings on fuel, as well as the environment in hybrids’ low carbon footprint. If you’re looking for the right financing to help you purchase a new hybrid vehicle, we can help.

Auto Glossary

Terms
Add-Ons

Any features or services that are applied on top of the base price of a car are considered add-ons. These can include things such as tinted windows, heated seats, leather seats, alarms, and wheel locks, to name a few.

Base Price

The base price of a car is the cost of the vehicle without any upgrades or added features that can be added after the car is ordered from a dealership. Only standard equipment and the manufacturer’s warranty are included in the base price, but any other fees will be added afterward.

Certified Pre-Owned (CPO)

CPO cars refer to used cars that have been certified, either by the dealership selling the car or the manufacturer of the vehicle. This gives consumers confidence knowing they are buying a used vehicle that is in good condition. When a used car is obtained by a dealership, it is inspected by a certified mechanic. The car is then repaired if it meets the required standards and is then ready to be sold as a CPO vehicle.

Clear Title

A clear title means that the owner of the car has a free and clear title and no longer carries a balance owing on a car loan. There are no liens of the title or levies from creditors.

Dealership

Auto dealerships are businesses that are authorized to sell new or used automobiles to consumers and serve as a direct dealer for automakers

Dealership Financing

Consumers can obtain dealer financing to help fund the purchase of a vehicle. A contract is signed with a dealership that requires a consumer to pay for a specific amount plus interest and funding fees over a certain period of time. Dealers will send the details of the consumer’s financials to various lenders to find one that will approve the loan.

Depreciation

Depreciation refers to the decline in the value of a vehicle. Immediately after purchase, a vehicle will become less valuable as soon as it is used. Put another way, depreciation is the rate at which an automobile loses its value over time

Extended Warranty

Vehicles come with a manufacturer’s warranty when purchased, but buyers can choose to purchase an extended warranty. This serves as a form of insurance policy on the vehicle to cover the cost of potential repairs in the future. An extended warranty is usually good for a certain period of time and/or mileage.

Lease

A contract that allows an individual the right to use or occupy a property for a specified period of time in exchange for a monthly payment. Leases are common for a property like apartments and vehicles. The individual on the lease does not own the asset at the end of the lease’s term, it is strictly for rental purposes.

MSRP (Manufacturer’s Suggested Retail Price)

Car manufacturers will offer recommendations on how much a car should be priced at the retail level, known as the manufacturer’s suggested retail price, or MSRP. The purpose of the MSRP is to standardize pricing in the automobile industry so that there is not a lot of fluctuation in price from one dealership to another.

Title Loan

A title loan uses the vehicle title as a form of collateral to secure a loan. Borrowers must own their vehicles free and clear and no longer owe any amount on a car loan. A lender will place a lien on the car title in exchange for funds. If the borrower defaults on the loan, the lender can take possession of the vehicle and sell it to cover any losses.

Trade-in Allowance

A trade-in allowance is the amount that a car dealer will reduce the cost of a new car purchase by after the consumer’s old vehicle has been traded in. It is somewhat like being given credit from the sale of an existing vehicle that is then applied to the purchase of a new vehicle.

Trade-in Value

A trade-in value is the amount that dealerships offer consumers for their vehicle and is typically applied toward the purchase price of another vehicle. Dealerships will assess the value of the vehicle and will base the amount that can be applied to a new car purchase. The consumer will then trade in the old vehicle and the assessed value amount will be deducted from the price of another vehicle. Trade-in value is often different than what the vehicle may be worth when sold in the open market.

Vehicle Identification Number (VIN)

Every vehicle will have its own unique vehicle identification number, which is used to identify a specific vehicle. No two vehicles will have the same VIN, making them easily identifiable with this unique 17-character code.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Industry Spotlight

What's happening with Canada's credit industry?

Leap Financial ⎯ Helping Consumers Take The Leap Into Financial Freedom

Leap Financial ⎯ Helping Consumers Take The Leap Into Financial Freedom

Leap Financial helps consumers in British Columbia take the leap into financial freedom through personalized mortgage solutions.

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan.

Your data is protected your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.