Having a vehicle in Canada quickly becomes more expensive – in some cases, at a faster pace than inflation – and could increase by 25% with prices and inflation, suggests a new survey.
The light investigation for Turo CanadaAn autoparting company says the average cost of having a car or a truck has increased nine percent since last year, and experts say that this will increase even more given the economic prospects.
Economists and financial analysts say that US President Donald Trump imposing prices for almost all countries and that the triggering of a trade war will ultimately lead to Higher prices for consumers, including cars and trucks.
Although The new government of Prime Minister Mark Carney Speed to work to dull as much pricing pain as possible, including for the automotive sector, it will take a while before prices reflect any improvement, suggests the survey.
Until then, Canadians should expect the possession of a car to become even more a financial burden as the cost increases even faster.
According to the survey results, the average Canadian spends $ 5,497 to have a vehicle each year, the highest Ontario at almost $ 6,000 and the most affordable British Columbia almost $ 4,500. In addition, one in three respondents says their expenses exceed $ 7,000 a year.
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Those who have vehicles have indicated that on their monthly net income, an average of 14% goes to the expenses related to the car. Young drivers pay much more, those aged 25 to 44 pay an average of $ 7,029 per year, while those over 65 pay approximately half of $ 3,728.
Household size and income also play a role because those with higher income and / or children generally have more than one vehicle.
And it is not only a question of paying the car itself by financing or rental,
“One of the most important costs is your fuel. Another thing is maintenance. Everyone must replace the tires at some point, the brakes, the oil changes – we do not necessarily put all this in the bucket of what it cost to own our vehicle, “said Kristine d’Arbelles at the Canadian Automobile Association.
“”You also have your insurance costs and this number varies considerably. “”
Then, if you possibly want to sell or exchange your vehicle, from Arbelles notes the importance of factoring in the depreciation of a vehicle over time.
“The damping is if you expect to sell your car … Knowing that you will not be able to sell it for the same amount you have bought,” she says.
“This can represent up to 50% of the cost of possession and driving of your vehicle.”
Those who already have a vehicle should also cope with an increase in costs Faced with Trump’s prices.
The overwhelming majority of Canadians still rely on the use of a vehicle, with more than half of the respondents in the survey saying that without access to that, they would need to change jobs.
There are certainly alternatives, such as public transport, taxis and carpooling services, as well as walking or cycling as far as possible.
However, not everyone has these available options, especially those that live in more distant or suburban areas or where public transport is not satisfactory.
Forty -one percent of the respondents said they wanted to be better transport options, so they wouldn’t need a car at all.
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