Car ownership is an increasing financial burden for Canadians

The car is often viewed as a symbol of freedom, allowing you to travel anywhere you want, when you want, on the open road. But they often come with a hefty pricetag and a host of hidden costs. For many Canadians, their car is transforming into more of a financial burden than it is worth. The fourth annual Car Ownership Index from Turo revealed 70% of Canadians believe their monthly car costs are higher than they'd like.

"With life getting so much more expensive, Canadians are looking for more ways to save on car expenses and supplement the cost of ownership. That's why alternative options like car sharing continue to grow in popularity," Bassem El-Rahimy, Turo vice-president, said in a statement.

Increasing car costs

While many Canadians are burdened with increasing costs for their cars, the reality is that car ownership is deeply ingrained in the country’s economic fabric. Hence, the index results show that 78% of Canadians say it would be impossible for them not to have a car.

Compared to 2024, car ownership costs have increased 9%, rising from $5,025 to $5,497 annually, forcing more than half of Canadians to make adjustments to reduce these car-related expenses. What’s more, 42% report sacrificing their spending in other areas of life because of car ownership.

This financial pressure on Canadians is expected to worsen, with proposed tariffs potentially inflating these costs by an additional 25% — forcing many Canadians to reconsider whether they can afford vehicle ownership at all.