Car Ownership Too Expensive? Canadians Turn to Sharing with Turo

A new study by Turo, Canada’s leading peer-to-peer car-sharing marketplace, reveals that high costs are leading Canadians to reconsider car ownership. Here are some key takeaways:

Young millennials feeling the pinch: Over half (56%) of young millennials (aged 25-34) surveyed said they are less likely to buy or lease a vehicle this year due to inflation, compared to the national average of 46%. They also have the highest estimated cost of ownership at $6,176 per year.

Car ownership becoming a burden: Many Canadians are finding traditional car ownership too expensive. This year, 37% of respondents without a vehicle cited cost as the number one reason for not owning or leasing one, up from 32% last year.

Cars sit idle most of the time: Despite the high cost, 85% of Canadians still own or lease a vehicle, but these cars sit idle for 95% of the year.

Car sharing on the rise: As car ownership becomes less attractive, car sharing is gaining traction. Young millennials are leading the way, with 21% having used a car-sharing service in the past 18 months, compared to the national average of 9%.

Positive experience with car sharing: Those who have tried car sharing are open to using it again, with the main motivations being price, not needing to own a car, and convenience over car rentals.

Car sharing benefits owners too: One in 10 car owners are open to listing their vehicle on a car-sharing platform to earn extra income and offset ownership costs.

Interest in electric vehicles (EVs) growing, but affordability remains a barrier: Over half of respondents (53%) plan to buy a hybrid or EV, with saving on gas being the top motivator for EV interest. However, high vehicle costs are a major barrier to EV adoption.

Lack of experience hinders EV adoption: Despite interest in EVs, most Canadians (81%) have never driven one. However, half would be more likely to buy an EV if they could test-drive it for a few days first.

The Turo Car Ownership Index suggests that Canadians are looking for alternatives to traditional car ownership. Car-sharing platforms like Turo offer a more flexible and potentially cheaper option for those who don’t need a car all the time. The study also highlights the growing interest in EVs, but affordability and lack of experience remain hurdles to wider adoption.