How much are Canadians paying per month on average to own a car? Here’s what one report found (2024)

FAQs

How much are Canadians paying per month on average to own a car? Here’s what one report found? ›

It costs more than $1,300 per month in Canada to service all of a car's needs, a new report has found. Using data from Autotrader, Ratehub.ca found it costs as estimated $1,387 per month to own a car in 2024, when combining insurance, maintenance, depreciation, parking, gas and other costs.

The average cost of car ownership in 2024 — which includes gas, parking, insurance and car maintenance — now totals $1,387 each month, or $16,644 annually, according to a recent report from Ratehub.ca, an online Canadian financial comparison platform.

That depends on a number of factors. Many Canadians will pay between $500 and $1,100 per month for their car loans. Your average car payment in Canada will be determined by factors such as your car price, repayment term and interest rate.

How much does the average Canadian spend on car repairs per month? The average monthly cost for car maintenance in Canada is about $81, though this might vary depending on the kind of vehicle.

What is the average new car price in Canada? The average cost of a new car in Canada in 2023, according to AutoTrader, rose to $67,817, an increase of nearly 20 per cent over 2022. That does not mean you can't find a cheaper car, but it does mean that you're paying more than ever.

Car Prices Are Generally Higher In Canada

The reasons behind this vary. However, the main reason is that more vehicles are manufactured in the US and then imported to Canada by the manufacturers. This automatically increases the price.

Let me paint a picture for you. Across our magnificent country, the average Canadian pays a range that can vary greatly for car insurance–typically between $1,000 to $2,000 annually. In some provinces like Ontario, drivers may experience higher rates due to factors like increased traffic and higher incidences of fraud.

According to our research, you shouldn't spend more than 10% to 15% of your net monthly income on car payments. Your total vehicle costs, including loan payments and insurance, should total no more than 20%. You can use a car loan calculator to calculate a monthly payment within your budget.

What is a typical mortgage payment in Canada? In the second quarter of 2023, CMHC reported the average monthly mortgage payment for a new mortgage loan was $1,922 in Canada. In major cities like Vancouver, with a high cost of living, this number jumps to $2,992.

Fast Facts on Cost of Car Ownership

Owning a car can get expensive, and the numbers don't lie. Owning a car costs an average of $10,728 per year or $894 per month. The cost of owning and maintaining increased by 10% from 2021 and crossed the 10K mark in 2022. The costs of owning a car go beyond the purchase price.

What is the average lifespan of a car in Canada? ›

Prolong the Lifespan of Your Car

The average vehicle in Canada has a ten-year lifespan. Naturally, the health of your car can be prolonged with regular maintenance. In fact, practically every car manufacturer has routine car maintenance as one of its conditions for the warranty to be valid.

According to Canada's Food Price Report(opens in a new tab), the average person should spend $339 per month on healthy food. New numbers from Stats Canada show that in December 2020, per capita monthly spending for food was $307. As of three months ago, Canadians are only spending $248 for groceries each month.

You can use a lease payment calculator in Canada to work out the cost of a $45,000 car lease. We estimated that it could cost between $683.86 and $697.46 per month to lease a $45,000 car.

Impact on Household Budgets. The rising cost of car ownership is having a significant impact on Canadian household budgets. With the average car now costing over $30,000 to purchase and thousands more per year to operate, many families are spending a large percentage of their income just to have a vehicle.

Average House Prices in Canada remained unchanged at 719400 CAD in April. Average House Prices in Canada averaged 458043.97 CAD from 2005 until 2024, reaching an all time high of 836300.00 CAD in February of 2022 and a record low of 241000.00 CAD in January of 2005. source: Canadian Real Estate Association (CREA)

The average total cost of owning a car in Canada is $10,452 per year according to CAA's Driving Costs 2023 report. This factors in fuel, insurance, maintenance, repairs, financing, depreciation, registration fees, and taxes.

While the average length of time an owner keeps his or her new vehicle is approaching nine years for Canadians, more than 50 per cent of the vehicles on our roads survive 15 years of ownership (up from only one-third that made that milestone in 2000, according to DesRosiers Automotive Consultants).

Owning a car costs an average of $10,728 per year or $894 per month. The cost of owning and maintaining increased by 10% from 2021 and crossed the 10K mark in 2022. The costs of owning a car go beyond the purchase price.

The overwhelming majority of Canadians—about 84%, to be more specific—own a car. There are many costs associated with car ownership, including fuel and insurance fees. For young Canadians, buying an eco-friendly car is likely a wise investment.