Canadian car owners face rising costs, with expenses up 9% and tariffs threatening a 25% jump. Younger drivers and families are hit hardest by the surge.
Car Ownership Becomes Pricier Than Ever
Owning a car in Canada is quickly becoming a luxury. According to a new Leger survey for Turo Canada, the average annual cost to own a vehicle has jumped 9% since last year, outpacing inflation. With new tariffs and continued inflation on the horizon, experts warn costs could spike by as much as 25% in the near future.
Tariffs Add Fuel to the Fire
U.S. President Donald Trump’s sweeping tariffs are driving up prices for cars, trucks, and parts, sparking a trade war that’s hitting Canadian consumers hard. While Prime Minister Mark Carney’s government promises to soften the blow, relief may be slow to arrive. For now, Canadians should brace for even higher costs at the dealership and beyond.
The True Cost of Car Ownership
The survey reveals that the average Canadian spends $5,497 a year on their vehicle, with Ontario drivers paying nearly $6,000 and B.C. residents closer to $4,500. Shockingly, one in three say their annual expenses exceed $7,000. Younger drivers (ages 25-44) pay the most-over $7,000 a year-while seniors spend about half that.
More Than Just the Sticker Price
It’s not just about car payments. Fuel, maintenance, insurance, and depreciation all add up. Kristine D’Arbelles of the Canadian Automobile Association notes that depreciation alone can account for up to 50% of total ownership costs. And with tariffs looming, even routine repairs and parts could get pricier.
Canadians Rely on Their Cars-But Want Alternatives
Despite rising costs, most Canadians still depend on their vehicles, with more than half saying they’d need to change jobs without one. While public transit, taxis, and ride-hailing offer alternatives, many in suburban and rural areas have few options. In fact, 41% of survey respondents wish for better transportation choices so they could ditch their cars altogether.
As tariffs and inflation drive up the cost of car ownership, Canadians face tough decisions about how-and whether-to stay on the road.
