Being a car owner isn’t cheap, and it’s only getting more expensive as the cost of owning a car continues to rise in Canada.
According to Ratehub.ca, the average selling price of a new car as of September 2023 was a whopping $67,817, which is a 19.4% increase year-over-year.
“Unfortunately, it doesn’t look like the auto industry will be getting much cheaper for Canadians,” Ratehub said in a blog post.
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The average cost of car ownership across the country is $1,387 per month, which is how much people pay to rent a one-bedroom apartment in Winnipeg.
There is some variability.
“This may differ depending on your specific case, but experts recommend that the cost be kept between 15-20% of your take-home pay.”
Transportation is the third-most costly expenditure for Canadians, behind housing and food.
The monthly figure of $1,387 per month factors in many different variables, including maintenance, car insurance, gas, parking and other fees.
Ratehub
The cost of fuel will affect the monthly fee in pretty great ways, especially considering how much gas is in Vancouver compared to some Albertan cities, for example.
Ratehub says it helps if you have “some money” for a down payment, which can help bring down monthly costs.
While you may think the used car market could save you, Ratehub says that supply chain issues have limited the amount you can save.
“The price of used cars is staying relatively flat compared with the rapid rise in MSRP figures.”
The average price of a used car ($39,155) is up 4.3% since last year. Monthly payments for used cars ($765) are much cheaper than a new car.
How have you fared with the cost of buying a car in Canada? Have you turned to transit? Let us know in the comments.
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