As interest rates have priced many prospective homebuyers out of the housing market, a new survey suggests inflation is hurting the chances of young Canadians owning a car.

The Car Ownership Index from car-sharing service Turo, released Monday, found 56 per cent of young millennials are less likely to buy or lease a car due to inflation, compared to 46 per cent of the general population.

Last year, just 39 per cent of Canadians indicated inflation would hurt their likelihood of buying or leasing a vehicle, the survey found.

Meanwhile, 17 per cent of millennials are planning to stop owning or leasing a car in the future, 52 per cent of whom are financially concerned with owning a vehicle. 

“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,” Cedric Mathieu, senior vice-president and head of Turo Canada, said in a news release. “Vehicles depreciate in value and have ongoing expenses, which persist even when unused.

EV ownership

Costs are also a factor driving some Canadians away from electric vehicles.

The survey found 29 per cent of Canadians who don’t plan to buy or lease an EV won’t consider them because of the costs, though 53 per cent of Canadians are considering a hybrid or EV for their next car purchase.

Among those looking to buy, saving on gas is the top motivation for 40 per cent of them.

Half of Canadians would also feel more comfortable making an EV purchase if they had a chance to test one out for a few days, the survey found. 

“The Index reveals a gap between Canadians' interest in EVs and their limited firsthand knowledge,” Christian Bourque, executive vice-president and senior partner at Leger, said in the release. “Half of those surveyed would be more comfortable purchasing an EV if they had the option to complete an extended test drive, indicating its potential as an educational tool for fostering adoption.”

METHODOLOGY

The survey was conducted by Leger for Turo in Canada, from December 11th to 18th, 2023. It consisted of a representative sample of 1,500 English and/or French-speaking Canadians 25 years of age or older. Only the official analysis report, from which this press release is inspired, is endorsed by Leger.