Cost of Owning a Car
(This article has been updated to reflect current 2012 figures from CAA)
According to data from Canadian Automobile Association and Globe Drive research, the average annual cost to own and operate a vehicle is $10,452 a year. This figure is based on the cost of running a 2012 Toyota Camry, 18,000 km a year, with the cost of gas set to $1.23/litre, with regular maintenance and repair.
Here is a breakdown of what you're likely to be spending:
- Value depreciation: They say a new car loses value as soon as it leaves the lot. Unfortunately, the value continues to drop year over year for and for the first year after purchasing a car. In the example of the 2012 Toyota Camry, the value will depreciate $3,634 in the first year, or $.20 a kilometre.
- Auto insurance: rates depend greatly on your car, driving record and the coverage you seek, but you can expect to pay about $2,667 a year, or $.15 for each kilometre you drive.
- Fuel costs: Based on an average gas cost of $1.23/litre you can expect to pay about $1,821 a year on gas alone! That's about $.10 a kilometre.
- Maintenance & repair: It's important to make sure your car is in good working order, this helps your car run efficiently, but also increases the longevity of the car and the safety of you and your passengers. It'll cost you though - $1,180 or $.07 km.
- License, registration: it all adds up - roughly $124, or $.01 per kilometre.
- Financing charges: how much are you being charged to pay for your car over time? Chances are you're paying about $1025 a year or $.07 per kilometre.
You don't have to be intimidated by the high costs of owning a car. Remember you have options:
Read the whole Driving Costs report Driving Costs report from CAA.