In February 2024, the average rent for a 1-bedroom unit in Canada reached $1,922 and $2,319 for a 2 bedroom.
This reflects a 10.5% jump year-over-year and the fastest annual growth since September 2023.
In 2023, Canadian parents paid a bare minimum of $544 per month for full-time childcare and families of four spend roughly $314 per week on groceries.
The high cost of car ownership is rolling in hot behind housing and food as a topic of frustration in Canada.
In December 2023, a man named Paul Turnbull told CBC about his personal car ownership woes.
Paul and his wife considered buying a new car after learning that their Outback needed $13K in repairs.
It seemed like a more feasible option, all things considered. But after comparing costs, fixing the Outback was less expensive.
It meant cancelling a trip to Ireland but ultimately, they didn’t have to sacrifice as much if they went new.
Average costs of owning a car in Canada
Currently, the average cost of owning a car in Canada is $1,387 per month or $16,644 annually. This number accounts for gas, parking, insurance and maintenance.
A new car costs an average of $68,000, which is nearly a 20% increase from 2022. The average cost of used vehicles sits around $37-$40,000, according to AutoTrader.
This is a lot of money.
Why the high prices?
Supply chain issues largely drove the cost spikes. COVID and Russia’s invasion of Ukraine compromised the availability of key parts, which increased demand.
Specifically, there was a semiconductor microchip shortage. These chips control everything from airbags to key fobs.
The steep drop in domestic inventories resulted in a massive jump in sticker prices for new cars.
On top of that, inflation and the state of the oil and gas industry plays a significant role.
Gas prices fluctuate based on the season, climate, political tension and local taxes.
As of October 18th 2024, the average cost of gas in Canada is 146.4/L (CAA).
Statistics Canada found that Canadians spend an average of $200 per month on gas, another $200 on parking, $111 on car insurance and $79 on maintenance.
Another $195 per month goes towards interest on car payments.
In contrast, a 12-month adult pass for unlimited travel with the TTC, Toronto’s public transit system, is $143/month.
The high costs of purchasing a new or used vehicle appear to be dipping as inflation and supply chain issues cool down.
However, these prices are still strikingly high, especially accounting for all the associated costs that come with car ownership.
Best practices
If you’re looking into replacing your car or becoming a first-time car owner, do you research ahead of time and make sure you feel confident in your choice.
CARFAX is a great resource that offers comprehensive vehicle history reports on used cars. It offers value assessments and repair estimates and costs.
When looking for a new car, get more than one opinion and do your due diligence by ensuring the vehicle, as well as the dealership’s offer, fit your budget, lifestyle and long-term needs.
For additional support, we recommend speaking with a financial advisor who can help you navigate costs of living and the market with guidance and ease.
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