Toronto is now one of the hardest places in Canada to justify owning a car

Between consistent traffic, endless construction, and the soaring cost of living, the financial and practical burden of car ownership is becoming more and more difficult to justify in major cities, and nowhere is that more apparent than right here in Toronto.

According to car rental marketplace Turo's State of Car Ownership in Canada '26 study, data shows that fewer people in Toronto are holding onto their vehicles. Regional findings show that just 72 per cent of Toronto residents surveyed reported owning a car, which is well below the national average of 85 per cent.

The study also found that 40 per cent of Toronto drivers say owning a car forces them to cut back on other spending, meaning the added expense often spills into other parts of their lives.

In Ontario, drivers face some of the highest car ownership costs in the country. On average, it costs roughly $5,575 per year to own and maintain a vehicle in the province, which is approximately 26 per cent more than in B.C.

For comparison, drivers typically spend $4,653 annually on their cars in Alberta, $4,488 in Saskatchewan and Manitoba, and $4,067 in Quebec.

"The way Canadians think about car ownership is increasingly shaped by the city they live in," said Bassem El-Rahimy, Head of Turo Canada.

"In major transit-oriented cities like Toronto and Montreal, many people are reconsidering the need to own a car full-time, while in places like Calgary driving remains essential for daily life. As these patterns diverge, more Canadians are starting to think about access to a car when they need one rather than ownership year-round."

Looking at the country as a whole, 77 per cent of respondents said their monthly car expenses are more than they can comfortably afford, and at the same time, the study found that drivers are spending less time behind the wheel.

In 2026, the average car in Canada sits parked for 22.6 hours a day (nearly 95 per cent of the time), making the high cost of ownership even more difficult to justify.

"Rising costs, growing frustration with the buying experience, and new uncertainty driven by tariffs and trade relations are changing how Canadians feel about owning a car. While ownership remains essential for most Canadians, fewer and fewer people are feeling good about it," the report reads.

"What was once associated with freedom and independence now feels, for many, like a financial obligation they can't easily escape."