Millennials Are Abandoning Car Ownership Due to Rising Cost, Study Shows

• The Car Ownership Index by Turo and Leger reveals that the rising cost of car ownership is dissuading many Canadians, especially young adults, from owning or leasing vehicles, with 56% of young millennials citing inflation rates as a deterrent.
• Cedric Mathieu, Turo’s Senior VP, highlights that car sharing offers a flexible solution to traditional ownership, allowing users to pay only for the vehicle when needed, thus easing financial burdens.
• Turo not only provides a platform for owners to earn extra income by sharing their vehicles but also addresses Canadians’ interest in electric vehicles by offering a variety of EVs and hybrids for extended test drives, encouraging EV adoption.

The way we’ve always owned cars is changing fast, especially with the cost of car ownership going up. Canadians, especially young millennials, are reconsidering how they own vehicles. New findings from the Car Ownership Index, a study by Turo, Canada’s top peer-to-peer car sharing platform, and Leger, a major market research company, show this trend clearly.

According to Cedric Mathieu, Senior Vice President and Head of Turo Canada, “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.” This sentiment resonates strongly with young millennials, with more than half expressing hesitancy towards purchasing or leasing a vehicle due to escalating costs.

The third annual Car Ownership Index reveals staggering statistics: 56% of young millennials aged 25-34 are deterred from vehicle ownership this year due to inflation rates, a significant increase from previous years. Across all age groups, 39% cited financial concerns last year, a figure that has now surged to 46%.

The study highlights that young millennials bear the brunt of these financial pressures, with estimated cost of car ownership averaging $6,176 CAD ($4,550 USD) annually, substantially higher than the national average of $5,025 CAD ($3,702 USD). Because of money pressures, 17% of young millennials are thinking about giving up their cars, mostly because of financial reasons.

To tackle these challenges, Turo provides a solution with its car-sharing platform. Mathieu highlights states, “Car sharing offers greater flexibility by allowing guests to pay for a vehicle exclusively when they need it, whether it be for a long getaway or quick business trip.” This flexibility resonates with Canadians seeking cost-effective alternatives to traditional car ownership.

The Car Ownership Index shows how car sharing is changing how we get around. Young millennials are at the forefront, with 21% using car sharing services in the last 18 months, way more than the national average. They love car sharing because it’s cheap, easy, and offers lots of different cars to choose from.

Additionally, Turo helps people offset the cost of car ownership by renting out their vehicles on its platform. Since 10% of car owners are willing to share their vehicles, Turo offers a great way for people to earn extra cash while covering the costs of owning a car.

In addition to helping with immediate financial concerns, Turo also taps into the growing interest in electric vehicles among Canadians. Many people are put off by the high cost of EVs, with 29% of respondents mentioning this as a barrier. But Turo helps overcome this by letting people try out a variety of EVs and hybrids for longer test drives, giving Canadians a chance to see if these vehicles suit them.

Christian Bourque, Executive Vice-President and Senior Partner at Leger, highlights, “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.” Turo’s dedication to raising awareness about EVs fits perfectly with how Canadians’ tastes and needs are changing.

SOURCE | IMAGES: TURO | ELECTRIFY EXPO

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