As a teenager, I counted the days to getting my driver’s licence. Two weeks after my 16th birthday, I was legally ready for the road.
In part one of our series on affordability and youth , a study by Turo — the Airbnb of the auto world — found that Canadians aged 25 to 34 pay about $6,176 per year to own a vehicle, compared with an average of $5,025 per year across all age groups. Assuming young Canadians drive vehicles relative to their income levels, the extra cost they pay is related to higher insurance payments and likely higher interest rates.
Uber, taxis, buses and rides from friends might be less convenient than ownership, but the scale is tipping away from having a depreciating vehicle in the driveway, going unused the majority of the day, that costs $6,176 a year to own. The Detroit Three were already mostly out, or on their way out of the entry market before COVID-19 arrived. This was amplified during the ensuing microchip shortage as automakers prioritized higher priced vehicles to maximize profits. In many cases, lower trims fell by the wayside.