A survey conducted by Leger for Turo Canada indicates that individuals aged 25 to 44 are shelling out an average of $7,029 per year on car-related expenses.
Kristine D’Arbelles of the Canadian Automobile Association highlights that these costs encompass more than just monthly payments.
“Fuel, maintenance, insurance, and depreciation all contribute significantly,” she notes.
Depreciation alone can account for up to 50% of the total cost of owning and operating a vehicle.The situation is further complicated by recent geopolitical developments. US President Donald Trump’s imposition of tariffs on imported steel and aluminum has sent instability through the North American auto industry. These tariffs are aimed at reducing the US trade deficit and encouraging domestic production, and have inadvertently led to increased manufacturing costs for vehicles, which are inevitably passed on to consumers.
Industry analysts warn that these measures could add approximately $6,000 to the price of a new car.
Canadian Prime Minister Mark Carney has pledged a $2 billion plan to protect the auto sector from the brunt of these tariffs. However, the effectiveness of this initiative remains to be seen, and in the interim, Canadians continue to bear the financial burden.
Turo Canada’s survey reveals that 21% of young millennials have utilized car-sharing in the past 18 months, citing affordability and convenience as primary motivators.
Yet, for others, especially those in remote or suburban areas with limited public transportation options, owning a vehicle remains a necessity. More than half of the survey respondents indicated that without access to a car, they would need to change jobs.
For many Canadians, the road ahead is uncertain.
