Car ownership is becoming a heavier financial burden for Canadian consumers, with 70 per cent of consumers saying their monthly vehicle costs are higher than they are comfortable with.
That is according to a new study from car-sharing marketplace Turo. The company recently released its fourth annual Car Ownership Index showing that 78 per cent of consumers in Canada absolutely need a vehicle, though rising costs are a concern.
“With life getting so much more expensive, Canadians are looking for more ways to save on car expenses and supplement the cost of ownership,” said Bassem El-Rahimy, Vice President of Turo, in a statement. “That’s why alternative options like car sharing continue to grow in popularity.”
U.S. tariffs have created a level of uncertainty for both dealers and consumers, and increased costs has not helped the situation for Canadians. According to Turo’s report, car ownership costs climbed 9 per cent from 2024, from $5,025 to $5,497 annually.
Turo said the increase forced 55 per cent of Canadians to make adjustments to reduce car-related expenses. And another 42 per cent of consumers sacrificed their spending in other areas of life due to car ownership. The financial pressure is expected to worsen due to the tariffs, which could inflate costs and push more consumers to consumer alternative options.
For example, data from Turo’s study shows 48 per cent of surveyed Canadian car owners would prefer to pay for a vehicle only when they need it. And 41 per cent would like better transportation options to avoid needing a car altogether. Car sharing has increased 8 per cent in the last 18 months, with 87 per cent of consumers who have tried this option open to trying it again.
