This is The True Cost of Owning a Car in Canada

This is The True Cost of Owning a Car in Canada

Posted on April 20, 2022

If you’re considering buying your first car, it’s a very exciting time. It’s also a time where emotion and enthusiasm can cloud judgement, which doesn’t always end well. We want you to be completely happy with your purchase so would like to take a minute to discuss the real costs of owning a car in Waterdown.

The auto loan payment is just part of the equation. To make sure you can really afford the car, you should take the following into account when working out affordability.

The Waterdown car loan payment

The loan repayment is usually the headline cost you think of when working out how much you can afford each month. It is definitely the most significant expense but it isn’t the only expense.

The more you borrow, the more you’ll pay each month. Also, the more interest you’ll pay over the loan term.

This is the main figure new drivers consider when assessing whether to buy a car or not, and it should be, but it isn’t the only expense.

Car insurance

Car insurance is mandatory in Canada and something every driver will need to have in place before driving your new car off the lot. Insurance will be expensive at first until you get older or have more experience.

There is no real ‘average’ for car insurance as there are too many things that go into the calculation. However, in our experience, you can expect to pay at least $1,500 per year in Ontario.

That’s over $125 per month on top of your Waterdown auto loan payment.

Running costs

Depending on the age and condition of the car you buy, running costs can either be high or relatively low. Running costs include fuel, tires, soft parts like wipers and pipes, antifreeze, oil changes and the other smaller expenses involved with running a car.

If you’re lucky, your average monthly outgoing will just be gas. If you’re not so lucky, it will include minor spares and repairs too.

The monthly cost will depend entirely on how many miles you drive.

Maintenance and servicing

Maintenance and servicing are usually annual rather than monthly but they still need to be borne in mind. Even if you’re buying an older car with your auto loan, you should still have it serviced as prevention is always better than cure.

Maintenance costs can be minimal and can be part of overall running costs. Vehicle servicing varies depending on the make, model and age of the car.

The average cost is around $1,500 per year for a newer car, which equates to around $125 per month.

As you can see, there’s a lot more to think about when it comes to the costs of owning a new car. While you may spend a lot of time thinking about the Waterdown auto loan payments and fuel, repairs, spares and maintenance also cost money. Each of which needs to be considered when figuring out how much you can afford each month.

When you’re ready for your Waterdown auto loan, contact our team for friendly, professional help.

We will use all our skill and experience to deliver the lowest possible Waterdown auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

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