Canadian Millennials Are Increasingly Priced Out of Car Ownership, Study Shows

More than half (56 percent) of Canadian millennials are less likely to buy or lease a vehicle this year due to recent inflation rates, which is significantly higher than the average across all ages (46 percent).

That’s according to the third annual Car Ownership Index released by car-sharing platform Turo in partnership with Leger.

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What’s more, 17 percent of millennials surveyed are planning to stop owning or leasing their car in the future, a figure that drops to 12 percent across all age groups. Among them, over half (52 percent) cited financial reasons, which is higher than the average across all age groups (42 percent).

Millennials are increasingly turning to car sharing, meanwhile, with 21 percent of respondents having used such a service in the past 18 months. This figure is significantly higher than the average across all age groups (9 percent).

“As the cost of living continues to rise, Canadians are reconsidering the traditional car ownership model, which can place a high financial burden on the owner. Vehicles depreciate in value and have ongoing expenses, which persist even when unused,” said Cedric Mathieu, Senior Vice President and Head of Turo Canada.

This year’s Car Ownership Index also reveals that 37 percent of Canadian respondents without a vehicle cited their number one reason for not owning or leasing one as “having a car is too expensive”—an increase from 32 percent a year ago.