Owning a car in Canada is becoming significantly more expensive, with costs outpacing inflation and expected to rise even further as global trade tensions, including tariffs pushed by U.S. President Donald Trump, ripple through the economy.
A new survey by Leger for car-sharing platform Turo Canada reveals that the average cost of car ownership has jumped 9% over the past year. That figure could climb as high as 25% in the coming months due to economic pressures and rising tariffs, particularly affecting vehicles and imported parts.
On average, Canadians now spend $5,497 annually to own and operate a vehicle. Ontarians face the steepest costs — nearing $6,000 — while British Columbians pay closer to $4,500. One in three Canadians surveyed say their yearly vehicle expenses top $7,000. Notably, Canadians aged 25 to 44 are shelling out the most, spending over $7,000 each year on their cars, while seniors over 65 average less than $3,800.
Fuel, insurance, and maintenance are major contributors to this financial strain. Kristine D’Arbelles of the Canadian Automobile Association warns that Canadians often overlook how everyday upkeep — from tire changes to oil and brake replacements — adds up quickly. Depreciation, often underestimated, can account for up to 50% of a vehicle’s total cost over time.
“These are hidden costs people don’t always think about, especially when they’re budgeting for a vehicle,” D’Arbelles explains.
The financial pain is compounded by new tariffs resulting from an intensifying global trade war. While Prime Minister Mark Carney’s government has pledged to cushion the impact, experts say relief will be slow to reach consumers.
Despite the cost surge, car dependency remains high. Over 50% of survey participants say losing access to a vehicle would force them to change jobs. Yet 41% of respondents admit they wish better public transit options existed so they wouldn’t need a car at all.
As affordability concerns mount, particularly for younger drivers and families, the growing demand for transportation alternatives may push cities and governments to prioritize investments in transit, ride-sharing, and walkable infrastructure. For now, though, Canadians are stuck with rising costs and few practical options.
