Monthly cost to own a car in Toronto takes shocking 52% leap to over $1,600
Skyrocketing living costs in Toronto are affecting grocery shoppers, renters, condo owners and now, even motorists are feeling the burn, according to a new analysis of the cost of car ownership in Canada’s largest city.
The study by financial planning platform Hardbacon finds that the average cost of car ownership in Toronto has leapt by a shocking 52% since 2019, and now averages at $1,623 per month in 2024.
Such astronomical increases in the cost to drive in the big city are attributed to a variety of factors, including the rising prices of new cars and cumulative costs associated with vehicle ownership like car insurance, fuel, maintenance, and parking fees.
Hardbacon
The study zeroed in on insights like the rising cost of a new car, which has spiked from an average of $38,690 in 2019 to $68,574 in 2024, according to findings sourced from AutoTrader.
Toronto drivers are also being forced to fork over more than double the fines for parking violations, with tickets for no-parking zones jumping from $30 to $75 last year.
Annual insurance fees are projected to average $2,428 in 2024, and prices at gas pumps are expected to increase throughout the year.
Interest payments on new cars are a significant factor in the overall cost to drivers, and payments on car loans now make up 16% of the average total cost of ownership in 2024.
The study determined that purchasers who take home a new car in 2024 are expected to spend a total of $140,408 over the span of seven years from their new investment through the sticker price and various associated costs, all added up and adjusted for inflation.
Hardbacon
“The sharp rise in car ownership costs in Toronto is a wake-up call for many,” says Julien Brault, CEO of Hardbacon. “It underscores the importance of considering all expenses related to owning a vehicle, not just the purchase price.”
The study compares the cost of car ownership to other transportation methods like the TTC and rideshare services.
Findings show that using Uber or Lyft for two round trips per week at an average trip distance of 16km would cost just a fraction of owning a car.
Trips were simulated for the study on February 29, covering routes to busy tourist destinations like the CN Tower and Woodbine Beach, as well as everyday commuting locales like Michael Garon Hospital and a Home Depot location.
Findings show that a combination of a TTC monthly pass and rideshares travelling the aforementioned distance and routes would cost $474 per month ($1.23 per km) using Uber and $437 (or $1.13 per km) using Lyft, roughly one-quarter the monthly price of car ownership.
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