Car or public transit: Which really is cheaper?

The question is not simply whether you need a car, but rather which transportation option best meets your needs. Owning a vehicle offers a great deal of freedom in everyday life, but it also comes with costs and responsibilities. On the other hand, public transit and other mobility solutions can help reduce transportation expenses, provided they are well suited to where you live, your travel needs and your lifestyle.

The true cost of owning a car: Would you believe $12,000 a year?

So, how much does a car cost per year? The short answer: a lot! According to Carfax Canada’s latest Market Outlook Report, the average selling price of a used vehicle now stands at $31,487 in Canada and $28,582 in Quebec. If you’re shopping for your first used car, here are a few tips to help you make the right choice.

Of course, a vehicle’s purchase price is only one factor to consider. The CAA-Quebec calculator can help you estimate the full range of costs associated with owning and operating different gasoline, hybrid and electric vehicles. Before making a decision, take the time to run the numbers!

For example, owning a 2025 SUV in an urban setting can cost more than $12,000 per year, even when driven less than 15,000 kilometres annually. Because the vehicle is covered by a warranty, maintenance and repair costs are still relatively modest. In this scenario, the owner also already owns a set of winter tires. A typical breakdown of ownership costs might look like this:

And it could be more! Leaving a vehicle unused for long periods can result in extra maintenance expenses. Other costs, such as a parking permit, can also add significantly to the overall annual cost of ownership.

So, to answer the question, “Car or public transit: which really is cheaper?”, you need to compare the cost of owning a car with the annual cost of the transportation alternatives available in your area.

Cost of public transit? Up to $6,000 per family per year

Without a car, household members must rely on walking, cycling, public transit or occasional car rentals to get around. Public transit services have expanded in recent years, thanks in part to projects such as the Réseau express métropolitain (REM) and the orange line Metro extension in Montreal.

However, each family member will need a public transit pass, which varies in cost depending on the travel zone (A, B, C or D) and the type of transit, such as the subway, bus or train.

Even if a family spends $300 a month on transit fares and another $200 on paid transportation of all kinds, the total annual transportation bill would only amount to $6,000, less than half the cost of owning just one vehicle. The contrast becomes even more striking when compared with the other cost scenario.

One important caveat, however. This comparison only holds if public transit is a realistic alternative to driving. If one person still needs a car for getting about, the equation changes completely.

Public transit or car? Camille’s and Mathieu’s stories

Camille, 19: Public transit is the clear choice

Camille, a 19-year-old CEGEP student, lives in Montreal just a few subway stops from her campus. For her, owning a car would likely be more of an expense than an advantage. With access to the subway, buses and student transit discounts, public transit provides a practical and affordable way to get around at the fraction of the cost of owning a car.

For outings or destinations that are less well served by public transit, Camille could also make occasional use of carpooling, car-sharing services or a rental car. In Camille’s situation, going without a car allows her to save substantially, without sacrificing mobility.

Mathieu, 24: When a car provides needed flexibility

Mathieu works on Île d’Orléans on a variable shift schedule, sometimes late into the evening. To get to and from work, he needs flexibility in how he travels, particularly when his hours do not align with the transportation options available to him. In addition, he regularly travels to visit family and take part in his sports activities.

For Mathieu, a car could be much more than a means of transportation. It could provide valuable freedom of movement and flexibility that would be difficult to achieve otherwise. Of course, that comes at a cost. If it fits within his budget, however, owning a car may be the option best suited to his lifestyle. The good news is that Mathieu can also take advantage of discounts on his car insurance as a young driver! There’s even a handy auto insurance checklist available to help him get a quick online quote!