In addition to tariffs, the cost of owning a car in Canada has increased rapidly – Country
A new survey shows that the rapid increase in owning a car in Canada is becoming more and more expensive — in some cases faster than inflation — with tariffs and inflation likely to grow by 25%.
Leger of Turo Canada, a car-sharing company, said the average cost of owning a car or truck has increased by 9% since last year, and experts say that this will increase given the economic outlook.
Economists and financial analysts say U.S. President Donald Trump imposes tariffs on nearly all countries and triggers a trade war that will ultimately bring higher prices to consumers, including cars and trucks.
The survey shows that prices will reflect any improvements for some time, although Prime Minister Mark Carney's new administration has pledged to work to make tariffs painful as much as possible, including the automotive industry.
Until then, Canadians should expect that ownership of a car would be more financially burdened, as costs rise even faster.
According to the survey, Canada spends an average of $5,497 a year, owns a car every year, the highest price in Ontario is close to $6,000, while the most affordable minimum in British Columbia is close to $4,500. In addition, two-thirds of respondents said their fees were over $7,000 a year.
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Those who own vehicles report their monthly net income, with an average of 14% going toward car-related expenses. Young drivers pay much higher, with people aged 25 to 44 paying an average of $7,029 a year, while those over 65 paying about half of the fee is $3,728.
Family size and income also play a role in higher income and/or children usually own multiple vehicles.
It's not just about paying for the car itself through financing or leasing,
Kristine D'Arbelles said at the Canadian Automobile Association: “The biggest cost is your fuel. The other thing is maintenance. Everyone has to change tires, brakes, oil changes at some point – we don't necessarily put all the vehicles owned by the Canadian Automobile Association. “
“You also have your insurance costs, and this number varies greatly. ”
Then, if you want to end up selling or trading on a vehicle, D'Arbelles points out the importance of feature factoring that depreciates the vehicle over time.
“Depreciation is if you expect to sell a car…know that you won’t be able to sell it in the same amount you bought,” she said.
“The cost of owning and operating a vehicle can be as high as 50%.
Faced with Trump's tariffs, those who already own vehicles will also face some rising costs.
The vast majority of Canadians still rely on using vehicles, and more than half of respondents said they would need to change jobs if they were not visited.
Almost there are alternatives, such as public transportation, taxi and rides, and possible walking or cycling.
However, not everyone has these options, especially those who live in more remote or suburban or are unsatisfied with public transport.
41% of respondents said they wanted better transportation options, so they didn’t need a car at all.
& Copy 2025 Global News, a division of Corus Entertainment Inc.
