Understanding the Cost of Owning a Car in Toronto

Toronto, Canada's largest city and economic hub, offers multiple transportation options, including public transit, taxis, and cycling. However, a sizable number of residents still opt to own a car. Despite the convenience and flexibility, car ownership comes with steep costs. This article sheds light on these costs, discussing the average expenses Torontonians deal with when owning a car.

Purchase or Lease Costs

The first glaring cost of owning a car in Toronto is the purchase price. The average cost of a new car in Canada is approximately $39,000. If you're buying used, you can expect to pay between $5,000 to $30,000 depending on the model, year, and condition of the vehicle. Aside from buying, leasing is another popular option, with an average monthly lease payment in Canada being around $500.

Car Insurance

Toronto drivers pay some of the highest car insurance rates in Canada due to the high rate of claims in the city. A Toronto driver can expect to pay around $2,000 yearly for car insurance. This figure, of course, varies depending on several factors such as driver's age, driving record, type of vehicle, and more.

Fuel Costs

Gasoline prices play an integral part when calculating total car-owning costs. Pricing can fluctuate greatly. As of late 2021, the average price of gasoline in Toronto is between $1.30 and $1.40 per litre. For an average car with a fuel economy of 7.1L/100 km, driving 20,000 km annually would cost approximately $1,820 to $1,960 a year for gasoline.

Maintenance and Repairs

Regular maintenance is crucial to keep any road-going vehicle running optimally. In Toronto, a standard oil change costs around $75. Regular tune-ups, which should be done every 15,000 to 30,000 km, cost about $200. The average motorist should prepare to set aside roughly $500-$700 yearly for general maintenance. Meanwhile, unexpected repairs can no doubt push that number even higher.

Parking

Parking in downtown Toronto can be pricey. For those who work downtown and need weekday parking, the average monthly cost for a parking spot is approximately $250. If you live in an apartment in the city, parking could cost extra, often between $100-$200 per month on top of your rent.

Depreciation

While it is not directly an out-of-pocket cost, depreciation greatly affects a car's cost over time. The average new car will lose around 20% of its value in the first year, and up to 40% by the end of the fifth year. When it's time to sell or trade in your car, the impact of depreciation really shows.

Conclusion

Adding up these costs shows that owning a car in Toronto can be an extensive financial commitment. Before deciding to buy, it's wise to carefully compare these costs with other transport alternatives such as public transit or ride-sharing services. In the end, make sure to choose what fits your lifestyle and budget best.