The average cost of car ownership in Toronto, Ont., is now more expensive than what it was pre-pandemic, potentially fuelling the car-sharing and ride-sharing markets as consumers consider the situation.
Toronto saw the average cost of car ownership jump 52% this year from 2019, reaching $1,623 per month in 2024. That is according to data from a new analysis published by Hardbacon, in which the company said the increase can be mainly attributed to the soaring prices of new vehicles and the cumulative rise in associated costs (of things like car insurance, fuel, maintenance, and parking).
“The sharp rise in car ownership costs in Toronto is a wake-up call for many,” said Julien Brault, CEO of Hardbacon, in a statement. “It underscores the importance of considering all expenses related to owning a vehicle, not just the purchase price.”
In a news release, Bacon Financial Technologies, which published data from the Hardbacon report, said the average cost of new vehicles has increased from $38,690 in 2019 to $68,574 in 2024. And while there are many reasons for this, consumers are likely to see a more expensive price tag during a difficult period. Adding to this, the company said parking fines in Toronto have also gone up; no-parking violations, for example, increased from $30 to $75 in 2023.
The company’s takeaway is that Toronto residents “could unlock considerable savings by considering transportation alternatives,” such as car-sharing services and ridesharing platforms. Auto retailers may see these markets continue to try to pull business away from their stores.