A recent report has unveiled a startling truth about the expenses associated with owning a car in Canada. According to data gathered by Autotrader and analyzed by Ratehub.ca, the total cost of owning a car has surpassed $1,300 per month in 2024. This comprehensive estimate includes various aspects such as insurance, maintenance, depreciation, parking, and fuel expenses.
The breakdown of these costs reveals some eye-opening figures. On average, Canadians are shelling out approximately $200 per month for fuel, $79 for car maintenance, $200 for parking, and $111 for car insurance. These figures add up to the hefty sum of $1,387, a financial burden that many Canadians may not have fully considered when budgeting for their vehicles.
Furthermore, the report sheds light on the escalating costs associated with purchasing a new car. In September of the previous year, the cost of buying a new car saw a staggering 19.4% year-over-year increase, reaching a substantial $67,817. Simultaneously, the average price of used cars climbed by 4.3%, settling at $39,155. These price hikes highlight the financial strain individuals face not only in maintaining their existing vehicles but also in the prospect of purchasing a new or used one.
While the report recognizes the necessity of car ownership for many Canadians, it also emphasizes the potential benefits of going car-less, especially for those residing in larger cities. "For the $1,387 we estimate it costs to own a car, a family of four can get unlimited travel on the (Toronto Transit Commission) for as little as $286 per month,” the report notes. “That leaves over $1,000 for Ubers and occasional car rentals.”
In light of these findings, Ratehub.ca offers some practical tips to mitigate the financial strain associated with car ownership. Firstly, choosing an affordable car can significantly alleviate the burden. Secondly, utilizing public transit whenever possible is recommended, as it presents a more cost-effective alternative. Finally, the report suggests comparing insurance quotes online to secure the best possible rates, thereby saving a few extra dollars.
The report raises awareness about the significant financial commitment involved in owning and maintaining a car in Canada. It prompts individuals to reconsider their transportation choices and explore alternatives that may not only be economically viable but also more sustainable. As Canadians navigate the intricate landscape of car ownership, being informed about the true costs is crucial for making prudent financial decisions.
