Turo index reveals Canadians are less likely to own a vehicle due to high rate of inflation
The 2023 Car Ownership Index reveals the average Canadian car sits idle 96 per cent of the year and over one in 10 Canadian car owners surveyed are willing to list their underutilized vehicle on a sharing marketplace.
TORONTO, April 4, 2023 /CNW/ - According to the second annual Car Ownership Index from Turo, Canada's leading peer-to-peer car sharing marketplace, in partnership with Leger, Canadians are concerned about the monetary pressures of car ownership caused in part by high rates of inflation and an increased cost of living. The Index is a benchmark study surveying a representative sample of 1,500 Canadians, which analyzes the state of car usage and ownership in Canada.
Financial motivators and economic swings have had a strong influence on consumers' approaches to car ownership.
Key findings of the 2023 Index revealed:
- Over one in three Canadians (39 per cent) surveyed are less likely to buy or lease a vehicle this year due to recent rates of inflation.
- Of those surveyed who own or lease a vehicle, but are planning to stop in the future, 55 per cent cited high costs as their main reason for doing so.
- Twenty-four per cent of Canadians surveyed were particularly concerned about monthly payments, citing it as the primary motivator for ending ownership, which is double the 2021 report figure.
Although car ownership is a significant expense for Canadians, cars remain underutilized. Those surveyed pay an average of $4,810 a year for their vehicle, even though it sits idle 96 per cent of the year. However, when they are using their cars:
- More than half (55 per cent) of car owners surveyed who work agree they would have to change jobs if they did not have a car.
- In addition to commuting, Canadian car owners cite convenience (31 per cent) and the desire for freedom (20 per cent) as the top reasons for having a vehicle.
"Given how integral vehicles are to our ability to work, explore, and perform everyday tasks, it's understandable that many feel it would be impossible to go without one despite increasing financial pressures and low usage rates," said Cedric Mathieu, Senior Vice President and Head of Turo in Canada. "The findings highlight that Canadians could benefit from cost offsetting solutions like peer-to-peer car sharing, which transform idle assets into sources of income. Peer-to-peer car sharing also allows Canadians to keep their essential vehicles while making car ownership more efficient and affordable."
Car Sharing Adoption
Since Turo's inaugural Car Ownership Index, use of car sharing services among respondents has increased from 7 per cent to 9 per cent, indicating an upward trajectory in adoption. Furthermore, over one in 10 car owners surveyed (11 per cent) are open to listing their owned car on a sharing marketplace. In line with Canadians' focus on monetary pressures this year, the majority of these respondents are drawn to the financial benefits of car sharing. When confirming their primary motivations, 35 per cent cited additional income, and 28 per cent noted offsetting the cost of car ownership or leasing.
"By regularly sharing their otherwise underutilized vehicle on Turo, our hosts earn hundreds of dollars in additional income per month, on average, which improves vehicle affordability. This also supports the development of a more efficient system that allows for fewer cars on the road, accessed by more people," said Mathieu.
Electric Vehicle Ownership
While 26 per cent of those interested in buying or leasing EVs are motivated to choose a better car for the planet, a larger proportion (38 per cent) are driven by a desire to save money on gas. Similarly, hesitations around purchasing an EV relate back to monetary considerations, as 31 per cent of those surveyed across Canada cited costs as their primary apprehension about buying or leasing an EV.
Despite these concerns, Canadians' interest in alternatives to combustion engine vehicles remains strong. Similar to Turo's first Car Ownership Index, over half of Canadians surveyed (54 per cent) plan to buy a hybrid or electric vehicle. For Quebecers, who are the most eager to adopt EVs, this figure jumps to 64 per cent.
For many, extended test drives offer an attractive opportunity to convert interest into adoption. Most Canadians surveyed (54 per cent) would be more comfortable buying an EV if they had the opportunity to test drive one for a few days or weeks before making a decision to purchase.
"Although the focus around car ownership and usage has shifted to affordability this year, the study shows several Canadians continue to seek EV and hybrid options," said Christian Bourque, Executive Vice-President and Senior Partner, Leger.
"Canadians' lack of experience with EVs remains a strong barrier to adoption and, given the continued interest in extended test drives from our initial index into this year, we believe increased exposure to EVs may accelerate ownership in Canada," said Mathieu.
The survey was conducted by Leger for Turo in Canada, from January 9th to 18th, 2023. It consisted of a representative sample of 1,500 English or French Speaking Canadians 25 years of age or older.
Turo is the world's largest car sharing marketplace where guests can book any car they want, wherever they want it, from a vibrant community of trusted hosts. Whether they're flying in from afar or looking for a car down the street, searching for a rugged truck or something smooth and swanky for a once-in-a-lifetime event, guests can take the wheel of the perfect car for any occasion, while hosts can take the wheel of their futures by sharing their underutilized personal vehicles or building an accessible, flexible, and scalable car sharing business from the ground up. Turo is home to a supportive and collaborative community that shares thousands of vehicles across the United States, Canada, the United Kingdom, Australia, and France. To learn more about Turo, please visit www.turo.com.
Leger is the largest Canadian-owned market research and analytics company, with more than 600 employees in eight Canadian and US offices. Leger has been working with prestigious clients since 1986. For more information: leger360.com.
SOURCE Turo Inc.
Jessica Spremo, Account Director, North Strategic, [email protected]; Sophia Huang, Communications Associate, Turo Canada, [email protected]
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