Canadians Pump the Brakes on Car Ownership Amid Soaring Costs

As Canadians grapple with the burden of a higher cost of living, their aspirations for car ownership are taking a hit. A recent survey conducted by Turo Inc. and Leger Marketing Inc. reveals a significant shift in attitudes towards purchasing or leasing vehicles, with nearly half of respondents citing elevated inflation and high interest rates as deterrents. The survey indicates that 46 percent of Canadians are now less likely to buy or lease a car this year due to financial constraints, compared to 39 percent last year. This reluctance is particularly pronounced among the 25 to 34 age group, where over half of respondents are reconsidering car ownership due to inflationary pressures.Furthermore, the rising costs associated with car ownership are dissuading potential buyers, with 37 percent of non-vehicle owners citing expense as the primary reason for not owning a car. This sentiment has surpassed concerns about not knowing how to drive or lacking a license.

Even among existing car owners, the survey highlights a trend of underutilization, with 85 percent admitting that their vehicles remain unused for the majority of the year. This paradoxical behavior underscores the growing recognition of the financial burden associated with car ownership, particularly in the face of increasing costs of living.

Despite growing interest in electric vehicles (EVs) as a potential solution to affordability concerns, barriers such as cost and unfamiliarity persist. Fewer Canadians are considering purchasing an EV this year, with 29 percent citing cost as a deterrent. Additionally, a significant majority have never driven an EV, indicating a need for greater exposure and accessibility to these vehicles. Nevertheless, there remains optimism regarding the transition to hybrid and electric vehicles, with over half of respondents planning for their next car to be either hybrid or electric. Savings on gas expenses emerge as a key driver behind this shift in preference. As Canadians reassess their priorities in light of economic challenges, the traditional model of car ownership faces scrutiny. The survey underscores the growing importance of affordability and sustainability in shaping consumer behavior, signaling a potential shift towards alternative transportation models in the future.