The average Canadian really doesn’t stop to think about the cost of their car habit. The funny thing is, this information is out there for the learning.
On average Canadians are spending 18% of their take home pay on their car payments.
That is 2.16 months of the year.
Over 2 months of the year, Canadians are working just to pay for their car(s) payments.
And that doesn’t even include the real cost of car ownership. Fuel, insurance, interest payments, maintenance and repairs, parking and the often forgotten cost of depreciation.
Nerd Wallet gives a good summary $561 – $885 USD per month depending on vehicle size (spoiler alert, the SUV is costing you about 58% more than a small sedan!) Using that as a good estimate, converting to Canadian, and you end up at 2.9 months for a small sedan up to 4.6 months for an SUV. Now sure, sure, you can make arguments, that if you’re making average Canadian take home pay, are you really buying a more expensive SUV? The answer though for many, is yes. Plenty of Canadians live beyond their means. Car ownership is taken as a given here. And car companies have been extremely effective at marketing the messages that families need crossovers or SUVs.
There are no shortages of financial advice columns warning you have your crippling car habit…. yet here we are. And probably because most people can’t fathom living without owning a car. We’re hoping that the information in this site can help you break free of the shackles and live carfree.