How high car ownership is affecting Canadians

Canadians’ views on car ownership are evolving from it being a symbol of freedom to becoming a financial burden.

The fourth annual Car Ownership Index from car-sharing platform Turo found that, despite 70 per cent of Canadians saying their monthly car costs are higher than they’d like, 78 per cent of Canadians say it would be impossible for them not to have a car. This, the report said, reflects how deeply ingrained car ownership is in the country’s social and economic fabric.

Compared to 2024, car ownership costs have increased 9 per cent, rising from $5,025 to $5,497 in the last year. This has forced more than half (55 per cent) of Canadians to make adjustments to reduce these car-related expenses, and 42 per cent are sacrificing their spending in other areas of life because of car ownership.

Car ownership disproportionately affects young people, according to the report. Those aged 25-44 report an average annual car ownership cost of $7,029, while those 65 and older reported $3,728 in annual costs.

For families, the average annual costs run $7,252 — it’s $4,793 for households without children.

Seven in 10 said their car costs are higher than they’d like and 42 per cent reported that they’ve cut back on spending in other areas of their lives.

Turo noted that the financial pressure on Canadians is expected to worsen. With proposed tariffs potentially inflating these costs by an additional 25 per cent, many Canadians may be forced to reconsider whether they can afford vehicle ownership at all.

“With life getting so much more expensive, Canadians are looking for more ways to save on car expenses and supplement the cost of ownership,” said Bassem El-Rahimy, vice president at Turo.

The study found that a growing number of Canadians are finding alternatives to traditional car ownership. Almost half (48 per cent) of surveyed Canadian car owners say they’d rather pay for a car only when they need it, given that the average single-owner car (driven by only one person in a household) sits unused for almost 95 per cent of the day (22.5 hours). Four in 10 (41 per cent) wish they had better transportation options to avoid needing a car altogether.

Turo noted that the study’s findings show that Canadians heavily rely on their cars and don’t want to give them up, even with the rising cost of living. That why more people are considering car sharing or leasing a vehicle to afford it — 87 per cent of those who have tried car sharing say they would use it again (up 8 per cent in the last 18 months). The main reasons for choosing car sharing include affordability and convenience. Key use cases for car sharing include domestic travel, errands, business trips, and international travel.

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