Affordability pressures and tariff uncertainty are beginning to reshape how Canadians think about car ownership — and could affect future demand at dealerships.
A new Turo report, The State of Car Ownership in Canada ’26, finds 85 per cent of Canadians still own or lease a vehicle, a figure that has remained stable over the past three years. But the research suggests the emotional connection to ownership is weakening. Forty-five per cent of Canadians say they wish they had better transportation options so they would not need a car at all.
“In 2026, car ownership isn’t a choice, it’s a necessity Canadians are starting to resent,” the report stated, pointing to rising costs and growing frustration with the buying experience.
Cost remains the biggest pressure point. The study estimates the average annual cost of car ownership in Canada at $4,999, though it varies significantly by region: from about $4,067 in Quebec to $7,072 in Atlantic Canada. Meanwhile, 77 per cent of Canadians say their monthly vehicle expenses are more than they can afford.
Tariffs are adding another layer of uncertainty. Seventy-five per cent of Canadians say they are concerned tariffs will increase vehicle prices, while 30 per cent say the threat of tariffs makes them less likely to buy a vehicle. The report also finds 11 per cent fewer Canadians plan to purchase a vehicle in the next one to three years compared with 2025.
At the same time, dissatisfaction with the buying process is surfacing, based on the report. Fifty per cent of Canadians say they are frustrated with pushy or high-pressure sales tactics, while 67 per cent of Millennials say fees and upsells make the experience unpleasant.
“For decades, car ownership has been the default option in Canada. Now we’re seeing that assumption start to shift,” said Bassem El-Rahimy, head of Turo Canada, in a statement. “People still need access to a car, but they’re questioning whether they need the financial weight that comes with owning one.”
Overall, the findings suggest the market may not shrink, but the path to purchase could lengthen. The research also points to an opportunity for dealers to improve the in-store and online buying experience.
