Tariff Uncertainty and Affordability Pressures Causing Canadians to Put Brakes on Car Ownership: Turo

Why It Matters

Tariff‑driven price volatility and affordability strains are reshaping Canadian demand, pushing consumers toward alternative ownership models and forcing automakers to rethink market strategies.

Key Takeaways

• 75% fear tariffs raising vehicle prices
• 33% less likely to buy a car now
• Gen Z car expenses average $5,820 annually
• 36% of Gen Z lack vehicle ownership
• 77% find monthly car costs unaffordable

Pulse Analysis

Tariff uncertainty between Canada and the United States is emerging as a decisive factor in the nation’s automotive market. As trade negotiations stall, import duties threaten to raise vehicle prices, prompting 75% of Canadians to express concern. This sentiment translates into a measurable decline in purchase intent, with a third of respondents indicating they are now less likely to buy a car. The broader economic backdrop—rising inflation and stagnant wages—exacerbates the pressure on household budgets, making traditional ownership increasingly unattractive.

The generational divide is stark. Younger Canadians, particularly Gen Z, are shouldering the highest annual car expenses at $5,820, yet 36% of them do not own a vehicle—a stark contrast to the 15% overall non‑ownership rate. A 9% drop in owners aged 25‑34 underscores a shift toward mobility alternatives. Turo’s platform, offering on‑demand rentals, aligns with this demand for flexibility, allowing users to avoid long‑term financial commitments while still accessing transportation when needed.

For automakers and dealers, the data signals a need to diversify offerings beyond conventional sales. Subscription services, short‑term leases, and partnership models with mobility platforms could capture the segment wary of upfront costs. Policymakers, too, may need to address tariff volatility to stabilize pricing and protect consumer confidence. As Canada’s car‑ownership landscape evolves, businesses that adapt to flexible, cost‑effective solutions are likely to gain a competitive edge.