Turo, the car rental marketplace, has published 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 company said the nationwide study reports that three in four Canadians (75%) 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%, at a time when car ownership is already straining household budgets.
Trade tensions are also shaping purchasing preferences. Seven in 10 Canadians (70%) say they would not buy an American-made vehicle until Canada-U.S. relations improve, it said.
“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.”
While the percentage of Canadians across all age groups who own a car remains flat at 85%, 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% of Gen Z Canadians do not own a vehicle, compared to 15% across all age groups
- 9% decline in car owners aged 25 to 34 between 2025 and 2026
Despite average car ownership costs decreasing 9% to $4,999 per year, affordability pressures remain high for many Canadians. More than three in four Canadians (77%) say their monthly car expenses are more than they can afford, up 10% from last year, said Truro.
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