A new study shows Canadians are facing record-high costs to own and operate vehicles, with average annual expenses jumping 12-15% in just two years. From insurance spikes to rising fuel prices, drivers across the country are feeling the financial strain of keeping their cars on the road.
Breaking Down the Costs
The latest data reveals shocking increases across all vehicle expenses:
1. Purchase Prices Skyrocket
- Average new car price: $66,000 (up 22% since 2021)
- Used car values remain 35% higher than pre-pandemic levels
2. Insurance Premiums Surge
- National average annual premium: $2,100 (15% increase)
- Ontario and BC drivers seeing 20-25% hikes
3. Fuel and Maintenance Pinch Wallets
- Gas prices 40% higher than 2020 averages
- Basic oil change now costs **85−120∗∗(upfrom85−120∗∗(upfrom50-75)
Why Costs Are Climbing
Industry experts point to multiple factors:
- Supply chain disruptions continuing to impact vehicle production
- Increased theft rates driving up insurance costs
- EV transition costs adding to repair expenses
- Inflation affecting all aspects of auto maintenance
How Canadians Are Coping
Faced with these pressures, drivers are adopting new strategies:
- 42% delaying vehicle purchases
- 35% cutting back on other expenses to afford car costs
- 28% considering electric vehicles for long-term savings
- 15% switching to public transit where available
Regional Cost Hotspots
Some provinces feel the pinch more than others:
- British Columbia: Highest insurance rates ($2,500+/year)
- Ontario: Fastest-growing maintenance costs
- Alberta: Largest fuel price increases
- Atlantic Canada: Steepest used car price jumps
Expert Advice for Cost-Conscious Drivers
Financial analysts recommend:
- Shopping insurance rates annually
- Considering longer loan terms cautiously
- Exploring car-sharing for urban residents
- Prioritizing preventive maintenance to avoid big repairs
“These aren’t temporary spikes,” warns auto economist Lana Kumar. “We’re seeing fundamental shifts in what it costs to own a vehicle in Canada.”
