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Pacenews Staff

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Fuel mileage and environmental concerns are on the minds of many motorists and shoppers. Ottawa has created an incentive program to try and persuade new car shoppers towards vehicles with excellent fuel economy- offering rebates for greener vehicles and applying penalties to gas guzzlers.

Transport Canada and Service Canada are working together to deliver the rebate program, which reimburses shoppers by as much as $2,000 for the purchase of a green-friendly car. Vehicles that fall into a certain fuel economy rating are eligible, with. New eligible vehicles purchased or leased as of March 20, 2007 will qualify for the rebate.

The list includes many new cars with a combined fuel consumption of 6.5L / 100km or less, SUV's with combined consumption of 8.3L / 100km or less, and flex-fuel capable vehicles with a rating of 13L / 100km or less. These ratings are tested estimates of the vehicle's real-world fuel consumption based on laboratory testing.

There are only a handful of vehicles in Canada which achieve sufficient mileage to qualify for the full $2,000 rebate, and they're all hybrids. The full rebate is especially attractive since it can help buyers to offset the potentially large cost premium they command.

If you're not ready to make the switch to battery-assisted driving, or hybrids aren't your cup of tea, you may still be able to receive a $1,000 rebate on regular models. Your dealership will be able to advise whether or not they offer models which qualify for the rebate.

This year's eligible vehicle list includes the Toyota Prius, Honda Civic, Saturn Vue and Ford Escape hybrid models, alongside the Smart ForTwo and ForTwo Cabriolet. A complete list of eligible vehicles is available on Transport Canada's website, at www.ecoaction.ga.ca/ecoauto. "The ecoAUTO Rebate Program is one example of how this government is encouraging Canadians to make more environmentally friendly transportation choices. It also saves them money and protects their health and the environment" said Hon. Lawrence Cannon, Minister of Transport, Infrastructure and Communities.

Act soon though, as there aren't yet plans to extend the Eco Auto Rebate program past the end of 2008!