The Ultimate Guide [2025]: Total Cost of Owning a Car in Vancouver, Canada

Want to own the car of your dreams in Vancouver? Before you walk to your nearby dealership, you should note down the costs of owning a car in Vancouver to make a smart purchase. Read more to find out:

The purchase of a new car is a huge financial investment. When you prepare yourself for the costs involved in car ownership, you are not only navigating your finances more carefully, but you will also be able to pay for the costs of car loan Vancouver without many financial hurdles.

Over 84% of Canadians own a car. It's no surprise that the cost of ownership is a big concern for Canadians. Find out more about the prices you need to know before you buy a car in Vancouver through a dealership with the best rates in car loan rates British Columbia.

New Tariffs on Canadian Imports - What You Can Expect in Total Cost of Car Ownership

President Donald Trump introduced over 25% tariffs on Canadian imports to the US. Due to this, Prime Minister Justin Trudeau imposed retaliatory tariffs of 25% on imports of vehicles from America. This is why you should expect the average costs of vehicles to be higher than before throughout 2025. This will most likely also lead to a hike in the total costs to own a car in Canada, and when it comes to car loan British Columbia and across Canada. Read more to learn about the main factors influencing the total cost of ownership in the next section.

Main Factors that Influence the Cost of Owning a Car in Canada

The total car expenses are a major part of the total ownership cost, apart from the actual car price. Learn more about the true cost of owning and driving a car here:

1. Car Insurance Rates

The average cost of car insurance in Vancouver is around $118. The rates of car insurance differ in each province in Canada.

2. Depreciation

It has been estimated that over 15-20% of the car's value depreciates within the first year of purchase. As soon as you walk out of the car dealership, the car's value will depreciate.

3. Car Maintenance Costs

Statistics Canada says that the average cost of car maintenance is around $79. We advise you to save around $100 for car maintenance costs every month.

4. The Cost of Gas

Depending on how much you drive, the overall monthly cost of your fuel can be up to $100-200 every month. The amount of fuel consumption per month also depends on how fuel-efficient your vehicle is.

5. Car Finance Rates

The monthly payment in car finance rates depends on your credit history. You have a high chance of being eligible for 0% interest rates in car finance if you have a good credit score.

6. Parking Car Cost

The average monthly cost for parking in Vancouver is around $100-$125, where the charges per hour may be around $1.75. The parking cost in Canada varies in every province.

7. Administrative Costs

The cost for registering and licensing your car in Vancouver is around $60 to $200 per year. This means you may have to spend around $10 every month for the administrative costs of your vehicle.

A Detailed Breakdown of Car Costs for Canadians: Different Costs Associated with the Total Cost of Ownership

The Average Monthly Cost of Owning a Vehicle

Research suggests that the average Canadian has to pay around $1,300 for monthly car expenses. Starting from administrative costs to car finance rates, the total cost of owning and operating a vehicle in Vancouver can be managed by an average Canadian household as long as you plan your expenses in advance. In the next section, we will share some tips on how you can save money on new or used car ownership.

The Total Cost of Ownership - Average Cost of Car Ownership in Vancouver

In the first year of vehicle ownership, your total expenses may be around $11,600. The car expenses of every Canadian in Vancouver will vary depending on different factors. The first factor is the type of vehicle you purchase. Not all vehicles are fuel efficient, and this may affect the fuel costs you pay every month. The other factors include car finance rates, parking rates, and car maintenance costs. Make sure you are aware of the costs before you finalize the purchase of your vehicle at the car dealership.

How to Save Up on Monthly Car Expenses after You Buy a Car

Ready to purchase a new car? Here's how you can save up on the overall cost of car expenses every month:

Look for Tax-Free Car Loans: You can look for dealerships that offer First Nation Financing in British Columbia. If you are eligible for the car loan, then you can pay zero taxes on the purchase.
Pick the Right Vehicle: The monthly costs involved in a vehicle are highly dependent on the type of vehicle you choose. It may either increase or decrease based on the vehicle type.
Don't Purchase Large-Sized Vehicles: Large vehicles like SUVs usually mean that you will have higher expenses every month.
Drive the Vehicle for a Long Time: By driving the vehicle for a long time, you can on your car expenses because the car value depreciates at a slower rate for used vehicles.
Always have a Good Credit Score: You can save on your car expenses if you have a good credit score. A good credit score means that you will be eligible for lower interest rates in auto loans.

Must Read: How to Improve Your Credit Score for Car Loans In Canada

Conclusion

The average car costs in Vancouver depend on a wide range of factors. You can expect the expenses to be on the rise after the introduction of new tariffs in Canada.

All Credit Scores Accepted!