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HomeCar Insurance ResourcesCost to Own and Operate a Car in Canada

The cost of owning and operating a car in Canada can vary depending on the province and the type of vehicle you own. Some of the factors that determine the cost include the purchase price of the vehicle, fuel costs, insurance, maintenance and repair expenses, and the cost of licensing and registration. Here are some of the average costs associated with owning a car in Canada:

  • Purchase price: This can vary greatly depending on the type of vehicle you choose, with new cars typically costing more than used vehicles.
  • Fuel costs: The average cost of gasoline in Canada is around $1.30 to $1.50 per litre, although prices can vary depending on the province.
  • Insurance: Car insurance rates in Canada can range from $1,000 to $2,000 per year, depending on the type of vehicle, your driving record, and the coverage level you choose.
  • Maintenance and repair expenses: This includes regular maintenance costs such as oil changes, tire rotations, and brake repairs, as well as unexpected repairs that may arise due to wear and tear or accidents.
  • Licensing and registration: The cost of licensing and registering a vehicle in Canada varies by province, but typically ranges from $100 to $300 per year.

In general, it is estimated that the average cost of owning and operating a car in Canada can range from $7,000 to $10,000 per year, although this can vary widely depending on the factors listed above.

Alberta

alberta

The cost of owning and operating a car in Alberta can vary greatly depending on factors such as the make and model of the vehicle, fuel prices, and driving habits. However, here are some average estimated costs:

  1. Fuel: This is one of the largest expenses of owning a car and can range anywhere from $50 to $200 a month, depending on how much you drive.
  2. Maintenance: This includes regular services such as oil changes, tire rotations, and brake work. On average, you can expect to spend about $100 to $300 per year for routine maintenance.
  3. Insurance: Car insurance is mandatory in Alberta, and rates vary depending on your driving history and the make and model of your vehicle. On average, drivers in Alberta can expect to pay around $1,500 per year for car insurance.
  4. Licensing and registration: This includes the cost of obtaining a driver’s license and registering your vehicle. The cost of obtaining a driver’s license in Alberta is approximately $75, and the cost of registering your vehicle is around $100.
  5. Miscellaneous: This includes parking, tolls, and other miscellaneous expenses. On average, drivers in Alberta can expect to spend around $50 per month on miscellaneous expenses.

So, on average, the cost of owning and operating a car in Alberta can range from $2,000 to $3,000 per year, but it’s important to keep in mind that these estimates are just that, and your actual costs may be higher or lower depending on your individual circumstances.

British Columbia

Here is a rough estimate of the costs involved in owning and operating a car in British Columbia:

  1. Purchase cost: The average cost of a new car in Canada is around $40,000, but this can vary greatly depending on the make and model.
  2. Fuel: Fuel prices in British Columbia average around $1.50 to $1.70 per liter for regular unleaded gasoline. If you drive an average of 20,000 km per year, you can expect to spend about $2,500 to $3,000 annually on fuel.
  3. Insurance: Car insurance rates in British Columbia vary depending on several factors, such as your driving record, age, and the make and model of your car. On average, car insurance in British Columbia can cost anywhere from $1,500 to $2,500 per year.
  4. Maintenance and repairs: The cost of maintaining and repairing your car will vary depending on the make and model, driving habits, and the age of the car. On average, you can expect to spend between $1,000 and $2,000 per year on maintenance and repairs.
  5. Registration and licensing fees: The cost of registering and licensing your car in British Columbia can vary depending on the make and model and the age of the car. The annual registration fee for a passenger vehicle in British Columbia is $50. Additionally, you’ll need to pay an insurance premium tax and a carbon tax, which can add an additional $200 to $300 per year to your costs.

In conclusion, the average cost of owning and operating a car in British Columbia is approximately $6,500 to $10,000 per year. However, this can vary greatly depending on several factors.

Manitoba

Manitoba

The average cost of owning and operating a car in Manitoba can vary depending on factors such as the make and model of the car, fuel costs, insurance premiums, maintenance costs, and more. However, some of the average expenses you may incur include:

  1. Vehicle purchase price – This cost can range from a few thousand dollars for a used car to tens of thousands of dollars for a new car.
  2. Fuel costs – This can depend on the fuel efficiency of your vehicle and how often you drive. Based on the average fuel price in Manitoba, you can expect to spend between $1,000 to $2,000 annually on fuel.
  3. Insurance premiums – The average cost of car insurance in Manitoba can be between $1,200 to $2,000 annually, but this can vary depending on your driving record, age, and the make and model of your car.
  4. Maintenance and repairs – Regular maintenance costs such as oil changes, tire rotations, and brake repairs can cost between $500 to $1,000 annually. Larger repairs, such as transmission replacement, can cost several thousand dollars.
  5. Licensing and registration – You’ll need to renew your license plate and vehicle registration annually, which can cost between $50 to $200 per year.

This is just an estimate and your actual costs may be higher or lower depending on your specific circumstances.

New Brunswick

On average, you can expect to spend between $8,000 to $10,000 per year for owning and operating a car in New Brunswick. This estimate includes the following costs:

  • Vehicle purchase or lease cost: Depending on the make and model, this can range from $15,000 to $30,000 or more.
  • Fuel costs: The cost of gas in New Brunswick varies, but on average, you can expect to spend between $1,500 and $2,000 per year, depending on your driving habits and the fuel efficiency of your vehicle.
  • Insurance: The cost of car insurance in New Brunswick varies depending on several factors, such as your driving history and the type of vehicle you own. On average, you can expect to spend between $1,000 and $2,000 per year.
  • Maintenance and repairs: The cost of regular maintenance, such as oil changes, tire rotations, and other routine services, can average between $500 and $1,000 per year. Unexpected repairs and maintenance, such as replacing brakes or fixing a transmission, can cost several thousand dollars.

Please keep in mind that these are rough estimates and your actual costs may vary.

Newfoundland & Labrador

newfoundland_and_labrador

Here is a rough estimate of the average costs:

  • Purchase price of a car: $15,000 to $50,000+
  • Fuel: $2,000 to $4,000 per year (based on fuel efficiency and driving habits)
  • Insurance: $1,200 to $2,500 per year (based on the make and model of the car and driving history)
  • Maintenance and repairs: $1,500 to $3,000 per year (based on the make and model of the car and driving habits)
  • License and registration fees: $500 to $1,000 per year

This is just a rough estimate and the actual costs can vary widely based on the specific circumstances of each individual.

Nova Scotia

nova-scotia

On average, the cost can range from several thousand dollars per year to upwards of $10,000 or more.

Here are some of the typical expenses associated with owning and operating a car in Nova Scotia:

  • Vehicle purchase or lease: The cost of the car itself will be the largest upfront expense, and this can vary widely based on the make, model, and year of the car.
  • Insurance: Car insurance in Nova Scotia is mandatory and can cost anywhere from a few hundred to several thousand dollars per year, depending on factors such as your driving history, the type of vehicle, and the level of coverage you choose.
  • Gas: Fuel costs will vary depending on the price of gas and the fuel efficiency of your vehicle.
  • Maintenance and repairs: This can include regular maintenance expenses, such as oil changes, tire rotations, and brake pads, as well as unexpected repairs and replacements.
  • License and registration fees: In Nova Scotia, you will need to pay a fee to register your vehicle and obtain a license plate, which is typically renewed on an annual basis.

Ontario

On average, the cost can be estimated to be around $9,000 to $12,000 per year. This estimate includes the following expenses:

  • Gasoline: $1,500 to $2,000 per year, depending on the price of gasoline and the frequency and distance of your driving.
  • Maintenance and repairs: $1,500 to $2,000 per year, including regular oil changes, tire rotations, and other routine maintenance.
  • Insurance: $1,500 to $2,000 per year, depending on the type of coverage you have and the make and model of your car.
  • Licensing and registration fees: $300 to $500 per year, including annual license plate renewal, vehicle registration, and safety inspection fees.
  • Taxes: $300 to $500 per year, including sales tax, property tax, and other taxes.
  • Depreciation: $3,000 to $5,000 per year, depending on the value of your car and the amount you drive.

Prince Edward Island

On average, the following costs are associated with owning and operating a car in Prince Edward Island:

  • Fuel costs: $1,500 to $2,000 per year
  • Maintenance and repair costs: $800 to $1,200 per year
  • Insurance costs: $1,200 to $1,800 per year
  • License and registration fees: $150 to $200 per year
  • Other expenses (such as tires, brakes, and oil changes): $400 to $600 per year

It’s important to note that these are rough estimates, and the actual cost of owning and operating a car in Prince Edward Island may be higher or lower depending on the specific circumstances.

Quebec

On average, however, one can expect the following costs:

  • Vehicle purchase price: The average cost of a new vehicle in Quebec is around $30,000, while a used vehicle can cost anywhere from $10,000 to $20,000.
  • Insurance: The average cost of car insurance in Quebec is about $900 to $1,200 per year, depending on the make and model of the vehicle, the driver’s age and driving history, and the level of coverage.
  • Fuel: The average fuel cost in Quebec is around $1.30 per liter. The cost of fuel will depend on the frequency of driving and the fuel efficiency of the vehicle.
  • Maintenance and repairs: Regular maintenance and repairs, such as oil changes, tire rotations, and brake pad replacements, can cost anywhere from $500 to $1,500 per year.
  • Licensing and registration fees: The cost of licensing and registering a vehicle in Quebec is around $150 per year.
  • Tolls and parking: The cost of tolls and parking will vary depending on the frequency of driving and the cost of parking in the area.

Overall, the cost of owning and operating a car in Quebec can range from $8,000 to $15,000 or more per year. It is important to consider all the costs associated with car ownership before making a purchase.

Saskatchewan

On average, the following costs can be expected:

  • Vehicle purchase price: $15,000 – $40,000
  • Gasoline: $1,500 – $2,500 per year
  • Maintenance and repairs: $1,000 – $2,000 per year
  • Insurance: $1,000 – $2,500 per year
  • Tires and brakes: $500 – $1,000 per year
  • License and registration fees: $300 – $500 per year
  • Total estimated cost: $20,000 – $48,000 over 5 years

Northwest Territories

On average, the following costs are typically associated with owning and operating a car in the Northwest Territories:

  • Vehicle Purchase Price: The cost of a new or used car can vary widely, but expect to pay anywhere from $20,000 to $50,000 or more.
  • Fuel Costs: Fuel prices in the Northwest Territories can be higher than in other parts of the country, averaging around $1.50 to $2.00 per litre for gasoline. The cost of fuel will depend on the vehicle’s fuel efficiency and the amount of driving you do.
  • Insurance: Car insurance is mandatory in the Northwest Territories and the cost can vary widely depending on several factors such as the type of vehicle, driving history, and location. On average, car insurance in the Northwest Territories can cost anywhere from $1,000 to $2,500 per year.
  • Maintenance and Repairs: Regular maintenance and unexpected repairs can add up over time, so it’s important to budget for these costs. The cost of maintenance and repairs will depend on the type of vehicle, age, and driving habits, but expect to spend anywhere from $500 to $1,500 or more per year.
  • License and Registration Fees: The cost of registering and licensing your vehicle in the Northwest Territories can vary depending on the type of vehicle and its weight. On average, expect to pay around $200 to $500 per year for licensing and registration fees.

Nunavut

The following are some of the average costs to consider:

  • Fuel: The average cost of fuel in Nunavut is higher than in other parts of Canada due to the remote location and difficulty of transportation. Expect to pay around $1.50 to $2.00 per liter for gasoline.
  • Vehicle: The cost of the vehicle will vary greatly depending on make, model, and condition. On average, a new car can cost anywhere from $20,000 to $50,000 or more, while a used car can cost between $10,000 to $20,000.
  • Insurance: Car insurance is mandatory in Nunavut and can range from around $1,000 to $3,000 per year, depending on your driving record and the type of coverage you choose.
  • Maintenance and Repairs: Regular maintenance and repairs can add up over time, with average costs ranging from $200 to $400 per year.
  • Tires: Tires can cost anywhere from $100 to $400 per tire, and need to be changed every few years, depending on how often you drive.

Yukon

On average, however, it can cost anywhere from $9,000 to $12,000 annually to own and operate a car in Yukon.

Some of the expenses that contribute to the cost of owning and operating a car in Yukon include:

  • Vehicle purchase or lease price: This can vary greatly depending on the make and model of the vehicle, as well as its age and condition.
  • Fuel costs: Fuel prices in Yukon are generally higher than in other parts of Canada, due to the remote location of the territory and the cost of transporting fuel.
  • Insurance: Insurance costs can vary depending on the coverage level, driving history, and other factors. On average, car insurance in Yukon can cost anywhere from $1,200 to $2,000 per year.
  • Maintenance and repairs: Regular maintenance and unexpected repairs can add up over time, especially for older vehicles. On average, it can cost anywhere from $500 to $1,500 annually to maintain and repair a car in Yukon.
  • Licensing and registration fees: The cost of licensing and registering a car in Yukon can vary depending on the type of vehicle and the length of the registration period.
  • Parking and tolls: If you park your car in a paid lot or garage, or if you frequently drive on toll roads, these costs can add up over time.

 

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

One Comment

  1. William Fold 26 June 2021 at 1:17 pm - Reply

    Is there a yearly property tax on cars in Vancouver?

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