The True Cost of Owning a Car in BC - Check Before Owning a Car in Canada

Whether you purchase a new car or a used car, the cost of owning a vehicle can mean a significant increase in monthly expenses. There are many factors that can lead to a high car cost, even with low car loan rates British Columbia.

If you are new to vehicle ownership, then it's a must for you to know the monthly and annual charges before you finalize your car loan British Columbia. From knowing the average Canadian insurance rates to calculating the average amount spent on gas refueling every month, there are many expenses both new and old car owners need to take note of.

After reading this blog, you will be able to calculate the monthly and annual expenses and understand the total cost of owning a car. We will explore the main factors influencing the costs of owning a car in Canada. Before you go to any British Columbia car dealerships, reading these points will help you make a smarter decision when purchasing a vehicle. 

New Tariffs on Canadian Imports and How They Affect the Cost of Owning a Car

Due to the newly introduced tariffs by President Donald Trump, with over 25% tariffs on Canadian imports to the US, and Prime Minister Justin Trudeau's retaliatory tariffs of 25% on imports from America, you can expect the average costs of vehicles to be on the rise throughout 2025. This will lead to a hike in the price of both the car and other ongoing costs of car ownership. Let's explore the main factors influencing car ownership costs in the next section.

The Main Factors Influencing the Costs of Owning a Car in Canada

Operating a vehicle requires you to pay for many other things, apart from the car payment itself. These are the following factors that affect the cost of owning a vehicle:

1. Car Insurance Rates

Every province in Canada charges different rates for auto insurance. It also depends on the type of new vehicle you are purchasing. 

2. Depreciation

A car's value will depreciate soon after you purchase it. It is estimated that over 15-20% of the value depreciates within the first year of purchase.

Recommended: Understanding the Total Cost of Car Ownership in Canada

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3. Car Maintenance Costs

According to Statistics Canada, the monthly car maintenance cost should be around $79. So, you should keep around 100$ aside for car maintenance charges every month. 

4. The Cost of Gas

The overall fuel cost every month can be up to $100-200 every month. The type of car and the amount of distance you'll drive every month will determine the total monthly costs of gas. 

5. Car Finance Rates

The car finance rates will depend on your credit history. If you have a good credit score, then there are chances of even qualifying for 0% interest rates in car finance. 

6. Parking Car Cost

The parking costs in Canada vary depending on the province. For example, in Ontario, you may be charged $1.50 to $6.75 per hour, depending on the location. 

7. Administrative Costs

The cost of registering and licensing your car can be around $60 to $200 per year, depending on the province. That generally means that you will be spending around $10 every month. 

Read More: Zero Percent Financing on Cars In Canada: Is It Truly Good Deal?

The Average Monthly Cost of Owning a Car

Research states that the average monthly costs of owning a car are around $1,300. This includes all the charges mentioned in the above section, starting from insurance costs to financing your car. Operating and ownership costs of a car can be managed, as long as you are smart with your expenses. In a later section, we will discuss how to save money on expenses after you buy a vehicle.

The Total Cost of Car Ownership

After buying a new car, the overall cost in the first year may go up to $11,600. The average car expenses will vary according to the type of vehicle you purchase and the province. Before any purchase, it's best to look for the best deals and compare car prices before you finalize your decision at the car dealership.  

How to Save on Your Car Expenses

Now that you have an idea of how much expenses are involved in the ongoing costs of owning and driving a car, you can use these tips to save more money:

• Opt for Tax-Free Car Loans: A few dealerships offer First Nation Financing in British Columbia that allows you to pay zero taxes for car loans.
• Choose the Right Vehicle: Depending on the vehicle you choose, the monthly costs may either increase or decrease.. 
• Avoid Large-Sized Vehicles: Large vehicles such as SUVs usually have a higher monthly cost. 
• Use the Vehicle for a Long Time: You can save more money by using the vehicle for a long span of time.
• Maintain a Good Credit Score: If you have a good credit score, then you will be able to save up on costs related to interest rates when you are financing your vehicle. 

Must Read: When Is Best Time to Buy a Car in Canada? Insider Tips Revealed

Conclusion

The real cost of owning a car in BC depends on many factors. With the introduction of new tariffs, you can expect the expenses of owning a car in Canada to increase in 2025.