How inflation is impacting car ownership

Canadians have told a recent survey that inflation is making them rethink owning a vehicle.

The second annual Car Ownership Index from Turo found that Canadians have concerns about the financial pressures of car ownership. Increased inflation and a higher cost of living are playing key roles, it found.

Nearly two in five Canadians (39 per cent) said surveyed they’re less likely to buy or lease a vehicle this year due to recent rates of inflation. Furthermore, 55 per cent said high costs are preventing those leasing a vehicle from continuing to do so. Nearly a quarter (24 per cent) reported being particularly concerned about monthly payments, saying that’s the main reason for ending ownership — that’s twice the number compared to last year.

The survey also found that vehicles are idle 96 per cent of the year, despite paying nearly $5,000 a year for it.

More than half (55 per cent) of Canadians said they would have to change jobs if they didn’t have a car. Apart from commuting, owners noted convenience (31 per cent) and the desire for freedom (20 per cent) as the top reasons for having a vehicle.

“Given how integral vehicles are to our ability to work, explore, and perform everyday tasks, it’s understandable that many feel it would be impossible to go without one despite increasing financial pressures and low usage rates,” said Cedric Mathieu, senior vice president and head of Turo in Canada, a peer-to-peer car sharing marketplace.