Life isn’t getting any cheaper, especially for young Canadians. With skyrocketing inflation and a looming threat of recession, every dollar counts more than ever. And when it comes to buying a car, the strain is real.
A recent survey from Léger, done in partnership with Toyota, reveals that 59% of Canadians think owning a car is less affordable now compared to previous generations. Younger folks, in particular, feel the pinch as they face higher living costs and fewer financial buffers.
The survey also shows a major shift in how people are approaching car ownership. With money tight, many are delaying or reevaluating their car purchases. In fact, 31% of Canadians have put off buying a new car, with the highest delays in Atlantic Canada (40%) and Alberta (39%). Plus, 27% are leaning towards used vehicles, especially those aged 18-34.
But don’t stress — there are smart ways to make car ownership more manageable. Here’s how you can get the most value for your money:
Consider the total cost of ownership
A person sitting at a desk with a laptop using a calculator. Mikhail Nilov | Pexels
It’s not just about the price tag. When you consider buying a car, think about fuel efficiency, maintenance and resale value. All these factors add up to the actual cost of owning a vehicle.
Look into hybrid or electrified options
Hybrid electric and other electrified vehicles aren’t just good for the environment — they’re also lighter on your wallet. The federal iZEV program in Canada offers up to $5,000 off zero-emission vehicles.
If you're wondering how they compare to gas-powered cars, consider this: While a Canadian driving 15,000 kilometres a year might spend about $2,000 on gas, a fully battery-electric vehicle could cost just $350 to recharge for the same distance in ideal conditions like overnight charging at home.
If a zero-emission vehicle is out of reach due to cost or doesn’t fit your lifestyle, hybrid electric vehicles like the Corolla Hybrid will give you solid fuel economy while reducing carbon emissions.
A young man with a coffee walks around a car. Courtesy of Toyota
Used cars
Opting for a certified used car can save you a lot of cash while offering reliability and performance. Look for manufacturers with a proven track record of durability. For example, 77.43% of Toyota cars sold in Canada over the past 20 years are still on the road.
"At a time when Canadians are grappling with financial pressures, how to best spend their automotive dollars for long-term value becomes even more important," says Stephen Beatty, Vice President, Corporate, Toyota Canada. "This decision goes beyond the new car purchase to consider operating and maintenance costs as well as resale value down the road."
Aerial view of a cars on a road alongside water. JACK REDGATE | Pexels
With some research and good choices, you can find a vehicle that fits your budget and needs. Whether you're considering gas, hybrid or battery-electric models, exploring certified pre-owned options, or looking at the total cost of ownership, there are opportunities to drive away with the confidence that you've spent your money wisely.
Remember, the right car is what fits within your budget, but by exploring options for long-term value, affordability is possible without compromising quality.
To learn more about Toyota, visit their website or follow them on Facebook and Instagram.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.