Financing Electric Fleet Vehicles in Canada

The electric future is no longer a distant concept—it’s a business reality.
From last-mile delivery vans to school buses and Class 8 trucks, fleet operators across Canada are preparing for the shift to electric vehicles (EVs).

But while EVs promise lower operating costs and environmental benefits, they come with a major hurdle:

High upfront cost.

Electric fleet vehicles can cost two to three times more than their gas or diesel equivalents—making financing essential.

In this guide, we’ll explore:

• Why EV adoption is accelerating for fleets
• What financing options are available
• How to manage cost through leasing, specialized loans, or blended structures
• Why total cost of ownership (TCO) often makes EVs a smart long-term bet

Why Fleets Are Going Electric

• Government targets: Mandates for zero-emission sales are tightening, with 100% ZEV goals by 2035 for many classes
• Fuel & maintenance savings: Electric drivetrains eliminate oil changes, emissions systems, and often reduce cost per km
• Brand image & ESG goals: Companies want to show customers and investors they’re serious about sustainability
• Incentives: Provincial and federal programs (rebates, tax credits) reduce net cost*

*Note: This blog excludes grant details, per content policy. Speak with your accountant or province for current incentive info.

Real Cost of Electric Fleet Vehicles

Financing Strategies for Electric Vehicles

1. Equipment Lease or Loan

A standard vehicle lease or loan, tailored to EVs. Terms typically range from 36 to 84 months, with financing tied to the invoice value and asset class.

✅ Structured monthly payments
✅ Option to own at term-end (loan)
✅ Potential for off-balance-sheet lease treatment
✅ Can include related costs (install, delivery, hardware)

Explore: Leasing & Loans

2. Sale-Leaseback for Down Payment Flexibility

If your business already owns equipment outright, you can sell it to a lender and lease it back, unlocking cash to fund EV upgrades.

✅ Turns existing assets into working capital
✅ Keeps gear in operation
✅ Can finance EVs without draining reserves

Explore: Refinancing & Sale-Leaseback

3. EV-Specific Term Financing

Select lenders now offer programs tailored to electric vehicles—some with:

• Extended terms up to 10 years
• Lower rates for ESG-aligned assets
• Payment deferrals for infrastructure rollout
• Flexible treatment of charging hardware

Ask your credit analyst about lenders familiar with Class 6–8 EVs, BYD, Lion Electric, Volvo VNR, Ford E-Transit, and others.

4. Blended Structures: Loan + LOC

Many operators use a line of credit to cover soft costs like:

• Down payment
• Charging installation
• Site upgrades
• Permits or inspections

Then use fixed-term financing for the core vehicle.

Explore: Working Capital Options

Total Cost of Ownership: Why EVs Can Win Long-Term

While EVs cost more upfront, they often reduce expenses significantly over time:

Over a 5–10 year horizon, EVs can break even or save money—especially if you finance them smartly.

Real Case Study: Electric Van for Urban Courier Fleet

Business: Toronto-based courier company
Need: Purchase of 2 Ford E-Transit vans ($230,000 total), charger install at depot
Challenge: Wanted to adopt EVs for ESG goals but conserve working capital

What They Did:

• Financed vehicles over 60 months with $0 down
• Used LOC to fund charger install and setup
• Received approval in 48 hours through Mehmi’s EV lender network

Outcome:
Drivers reported 65% lower fueling costs in first 3 months, maintenance flagged “near-zero,” and the business used ESG data in its next RFP submission to win new retail client.

FAQs: Financing Electric Fleet Vehicles

Can I finance EV charging equipment too?
Yes. Charging infrastructure, install labour, and smart grid integration can often be included in your financing structure.

Can I finance used electric fleet vehicles?
Yes, if the vehicle is well-documented and has warranty or verified condition. Private sale EVs can also be financed with proper documentation.

What credit score or business age is needed?
Most lenders require 600+ credit and 6–12 months of operating history. Mehmi can help find lenders that fit your profile.

Can I mix EVs and traditional trucks in one loan?
Yes—fleet bundle financing allows you to structure mixed assets under one agreement.

Final Word: Finance the Future Without Breaking the Bank

The EV transition is here—and the businesses that act early are the ones poised to benefit.

But you don’t need to wait until you have cash on hand.
With structured equipment loans, leasebacks, and flexible working capital, Mehmi helps you transition to EVs on your terms.

Looking to electrify your fleet but concerned about upfront costs?
Speak to a credit analyst or use our calculator to explore electric vehicle financing options that fit your fleet goals.