Climbing Costs: Cost of gas-powered car ownership in Toronto increases 52 percent says new report

Toronto, Ontario — New analysis from personal finance app Hardbacon has found that the average cost of owning a gas-powered vehicle in Toronto has increased by 52 percent.

This change specifically translates to an average cost of $1,623 dollars per month, which is a significant increase from data collected in 2019 wherein the average monthly cost of vehicle ownership was only $1,068.

The factors associated with this increase in cost are the rise in prices of new vehicles, increase in gas prices, insurance maintenance costs, parking, registration and licensing fees.

For instance, according to data from AutoTrader, the average cost of new vehicles has increased to $68,574 from $38,690 in 2019.

This surge, Hardbacon notes, is mostly due to supply challenges, a shortage of labour and fewer new entry-level vehicles on the market.

Interest rates on new vehicle loans have also increased from just over 5 percent in 2019 to 8.24 percent in January of 2024, according to Statistics Canada.

Moreover, parking fines in Toronto have also gone up significantly, with no-parking violations rising from $30 to $75 last year, and interest payments on car loans now representing 16 percent of the total cost of car ownership.

“The sharp rise in car ownership costs in Toronto is a wake-up call for many,” said Julien Brault, CEO of Hardbacon.

“It underscores the importance of considering all expenses related to owning a vehicle, not just the purchase price.”

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