Yes, beyond the purchase price, owning a car in 2025 comes with many hidden costs—including depreciation, financing interest, insurance, maintenance and repairs, subscriptions, parking, tolls, and (for EVs) charging equipment and electricity. For Ontario drivers, where winters, toll roads, and urban parking fees add up quickly, understanding the total cost of ownership is essential before committing to a new or used vehicle.
The moment you drive off, your vehicle begins losing value. In Canada, new cars often lose 20–30% of their value in the first year, and by year five, many vehicles depreciate 45–65% of their original price. This erosion in value doesn’t hit you monthly, but it directly impacts what your car is worth when you go to sell or trade it.
Most vehicle purchases in Ontario are financed, meaning you’re not just paying for the car—you’re also paying for the privilege of borrowing money. Over the life of a loan, interest can add thousands to the total cost. A $40,000 vehicle financed over seven years at 6% interest adds nearly $9,000 in financing charges. Longer loans lower monthly payments but increase the total cost of ownership significantly.
Ontario consistently ranks among the provinces with the highest auto insurance costs due to density, theft, and repair complexity. The Insurance Bureau of Canada (IBC) estimates that auto theft adds about $130 to the average driver’s premium in Ontario. In addition, from 2017 to 2024, Ontario’s theft claim frequencies spiked 165%, and the cost of servicing theft claims increased more than 500%.
Basic services—oil changes, brake pads, fluid flushes—may seem small, but together they can easily tally $500–$800 per year, especially as parts and labour costs rise.
Ontario drivers often invest in high-quality winter tires (especially for insurance discounts), which can cost $1,000–$1,500. On top of that, seasonal swaps and off-season storage (especially in urban areas) can cost $100–$200 per year.
In modern vehicles with advanced driver assistance systems (ADAS), replacing a windshield often triggers the need for sensor recalibration. What may have cost a few hundred dollars before can now exceed $1,500–$2,000.
EVs avoid oil changes, but battery replacement can be a five-figure risk. While major battery warranties often last 8 years, out-of-warranty replacements can cost $10,000 or more (Natural Resources Canada, 2024). Charging cables and adapters also add expense (often $300–$800).
At Ontario’s average gas rates in 2025 (about $1.65 per litre), a midsize SUV with 20,000 km annual driving can rack up $3,300 in fuel alone (Ontario Energy Board, 2025). For EVs, home charging may cost $600–$900 annually, but public fast charging can double that in some cases.
Urban parking in cities like Toronto can top $200+ per month for a stable spot, and public parking in downtown cores often runs $20–$30 per day. Meanwhile, 407 ETR tolls alone can add $200–$300 monthly for commuters.
While Ontario eliminated license plate stickers in 2022, other fees remain: transfers, new plate issuance, and specialty plates can cost $59–$350.
Programs like CAA or manufacturer roadside service cost $100–$250 per year. Extended warranties can range from $2,000 to $4,000, which many buyers consider worthwhile as cars get more complex.
Many new vehicles come with apps—remote start, tracking, diagnostics—with post-trial fees of $15–$30/month.
Some automakers now charge subscriptions for features like built-in navigation or CarPlay/Android Auto—typically $100–$300 per year.
Manufacturers are increasingly selling software features (like heated seats, extra driving modes) as post-purchase upgrades. These can cost $200–$1,000 one-time or $10–$50.
High-rise condo or older homes often require electrical upgrades or board approval. These installations can run $3,000–$10,000.
Beyond tires, Ontario drivers contend with block heaters, extra idling fuel, and rust-proofing. Annual rust-proofing can cost $150–$250, but many consider it essential given Ontario’s road salt usage.
Ontario leads Canada in vehicle theft claims, and the province has seen a 524% increase in auto theft claim costs since 2018, crossing the $1 billion mark in 2023. Because of this, insurers commonly require anti-theft measures and charge higher rates for high-risk models.
| Category | One-Time Costs | Annual/Monthly Costs (avg.) |
|---|---|---|
| Depreciation | N/A | ~20–30% of value in first year |
| Financing | N/A | $1,000–$1,500 annually |
| Insurance | N/A | $1,500–$2,500 annually |
| Maintenance | N/A | $500–$800 annually |
| Winter Tires + Swaps | $1,000–$1,500 upfront | $200–$300 annually |
| Windshield/ADAS | $1,500–$2,000 (if needed) | N/A |
| Fuel (ICE) | N/A | $3,000–$3,500 annually |
| EV Charging | $1,500–$2,500 (home charger) | $600–$900 annually |
| Parking & Tolls | N/A | $200–$500 monthly |
| Licensing/Plates | $59–$350 | N/A |
| Roadside Assistance | N/A | $100–$250 annually |
| Subscriptions | $200–$1,000 unlocks | $200–$600 annually |
Insurance is one of the few major costs you can actively control. Comparing quotes across multiple providers often reveals hundreds in annual savings. Brokers like Regal Insurance do the heavy lifting.
Setting aside a monthly fund for maintenance helps soften the blow of larger expenses like brakes, tires, or unexpected ADAS calibration costs.
Don’t just compare sticker prices—compare lifetime costs. An EV may have higher upfront costs but lower fueling expenses. A used car may be cheaper to buy but could require costly out-of-warranty repairs.
Insurance doesn’t just pay claims—it protects your finances against Ontario’s theft, accident, and repair risks. Brokers ensure you aren’t overpaying while tailoring coverage to your real needs.
Car ownership in Ontario isn’t just about buying a vehicle — it’s about managing all the costs that come with it. Regal Insurance brokers help you secure affordable auto insurance, navigate theft risks, and protect your investment without overpaying. Get a free auto insurance quote today and take control of your total cost of ownership.
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