Toronto's cost of living rises: Driving costs skyrocket by 52%, reaching 1623 yuan per month
The soaring cost of living in Toronto is affecting supermarket shoppers, renters, apartment owners... Now, according to a latest analysis of the cost of owning a car in Toronto, even drivers are feeling the pressure.
A study by financial planning platform Hardbach found that from 2019 to 2024, the average cost of owning a car in Toronto skyrocketed by 52%, reaching $1623 per month.
Research shows that the significant increase in the cost of driving in Toronto can be attributed to various factors, including rising new car prices and accumulated costs associated with owning a car, such as car insurance premiums, fuel costs, maintenance fees, and parking fees.
AutoTrader's survey results show that the cost of new cars has skyrocketed from an average of 38690 yuan in 2019 to 68574 Canadian dollars in 2024.
Toronto drivers are also forced to pay more than double the fine for illegal parking, and the fine for prohibited parking areas has increased from $30 last year to $75.
In 2024, the annual average insurance premium is expected to reach 2428 yuan, and the oil price at gas stations is only expected to rise during this year.
The interest expense of a new car is an important factor affecting the total cost for drivers, with current car loan expenses accounting for 16% of the average total cost of ownership.
The research results indicate that people who purchase new cars in 2024 are expected to spend 140408 yuan within 7 years, which is calculated by adding up various related expenses and adjusting for inflation rate.
Image source: Hardbacon
Hardbach CEO Julien Brault said, "The sharp rise in the cost of owning a car in Toronto has sounded the alarm for many people. This emphasizes the importance of considering all costs, not just the purchase price.
This study compared the cost of owning a car with other modes of transportation such as TTC and ride hailing.
The research results indicate that using Uber or Lyft for two round trips per week, with an average travel distance of 16 kilometers, only costs a small fraction of owning a car.
The study simulated routes to busy tourist attractions such as CN Tower and Woodbine Beach, as well as daily commuting locations such as Michael Garon Hospital and Home Depot on February 29th.
The results indicate that alternating between TTC monthly passes and ride hailing services on the aforementioned distances and routes will cost 474 yuan (1.23 yuan per kilometer) per month using Uber and 437 yuan (or 1.13 yuan per kilometer) per month using Lyft, which is approximately a quarter of the monthly cost of owning a car.
Source link:
https://www.blogto.com/city/2024/03/monthly-cost-own-car-toronto/