Tariff Uncertainty and Affordability Pressures are Causing Canadians to Put the Brakes on Car Ownership

New 2026 Car Ownership Study Finds Fewer Canadians are Planning to Buy as Trade Tensions Rise

TORONTO, March 4, 2026 /CNW/ - Turo, the car rental marketplace, today publishes its fourth annual State of Car Ownership in Canada Study, revealing that tariff uncertainty and strained Canada-U.S. trade relations are emerging as a new pressure point shaping car ownership in Canada.

The nationwide study reports that three in four Canadians (75 percent) are concerned tariffs will push vehicle prices higher in 2026. As a result, nearly one in three Canadians says they are less likely to purchase a vehicle due to the threat of tariffs. Since 2024, the share of Canadians planning to purchase a vehicle within the next three years has dropped by 15 percent, at a time when car ownership is already straining household budgets.

Trade tensions are also shaping purchasing preferences. Seven in ten Canadians (70 percent) say they would not buy an American-made vehicle until Canada-U.S. relations improve.

Other notable national findings from the study include:

Young Canadians are being priced out of ownership

While the percentage of Canadians across all age groups who own a car remains flat at 85 percent, the study shows a widening generational divide. Younger Canadians are facing the highest costs and showing the greatest resistance to traditional ownership.

• Gen Z drivers report the highest annual car expenses of any generation, averaging $5,820 per year
• 36 percent of Gen Z Canadians do not own a vehicle, compared to 15 percent across all age groups
• 9 percent decline in car owners aged 25 to 34 between 2025 and 2026

"Car ownership doesn't make sense anymore," says William Foran, a 25-year-old Toronto resident who does not own a car. "When you add up insurance, gas and payments, it feels like a mortgage. I'd rather just rent when I want to have a vehicle for a bit."

Canadians are driving less to cope with rising costs

Despite average car ownership costs decreasing 9 percent to $4,999 per year, affordability pressures remain high for many Canadians. More than three in four Canadians (77 percent) say their monthly car expenses are more than they can afford, up 10 percent from last year.

As a result, more than half of Canadians (56 percent) report changing how they use their vehicles to cut costs:

• 32 percent say they are driving less to reduce expenses
• Canadians are expected to drive 409 hours in 2026, down from 414 hours in 2025
• The average Canadian vehicle now sits parked for 22.6 hours a day, unused nearly 95 percent of the time.

Long-term rentals are gaining traction

As frustrations with the cost of ownership grow, Canadians are increasingly questioning whether owning a car is the only way to access one. Long-term rentals are emerging as a flexible alternative for cost-conscious drivers who want access to a vehicle without a lengthy financial commitment.

• 54 percent of Canadians say they would prefer to save money by using a car only when needed rather than owning or leasing one
• 41 percent say they would consider renting a vehicle for an extended period, and nearly one in ten plan to do so within the next 12 months
• 42 percent cite the appeal of long-term rentals as avoiding the lengthy commitment of a traditional lease

"Uncertainty in the economy is forcing Canadians to rethink what it really means to 'own' a car," said Bassem El-Rahimy, Head of Turo Canada. "From tariffs to cost-of-living pressures, flexibility matters more than ever for Canadians. We're seeing growing interest from people navigating job changes and evolving life phases who want access to a vehicle without the financial strain or long-term commitment that comes with ownership."

That interest is increasingly translating into real demand. Over the past 12 months, Turo has seen a 100 percent increase in long-term car rental bookings in Canada, based on thousands of trips lasting longer than a month.

The survey was hosted on the Angus Reid Forum for Turo and conducted among a representative sample of 1,509 English and/or French-speaking Canadians aged 25 or older.

Read the State of Car Ownership in Canada '26 Study.

About Turo

Turo is reinventing rental to unlock independence for all, with hundreds of thousands of vehicles listed by a vast network of local hosts across the United States, Canada, United Kingdom, France, and Australia. By removing the hassles and rigidity of the traditional rental experience, Turo lets customers choose the exact vehicle they want, pick it up where they want, and keep it for as long as they need.

SOURCE Turo Canada Co ULC

Media Contact: [email protected]