Due to inflation and varying maintenance costs, using two vehicles for work and play has become a luxury that is increasingly difficult to afford for families who really need it.
• Also read: Owning a car in Montreal will cost 65% more in 2024 than in 2019
Numerous growth in the automotive industry has forced a North Shore family to be creative with their difficult decisions.
For example, instead of being tempted by an electric car, both parents decided to buy two cars at the same price.
“I bought an SUV truck and an old car in 2022 to meet our needs,” explains Steve Morin, who works as a laborer on construction sites. It’s a stroke of luck for the second car.”
“It was impossible for us to make two payments at the same time. To buy a newer one, we have to wait until the loan on the truck runs out.”
- Listen to the interview with Maude Gauthier, journalist for Hardbacon QUB :
If Steve and his wife Cynthia Martineau chose this route, it was primarily because of the cost of gas. Their transport was no longer economical.
“It was a gas-guzzling vehicle [de 18 à 20 litres aux 100 km]. At that time, a liter of gasoline cost $0.85. This ended up costing us between $35 and $40 per week more on our gas bill. It didn’t make sense anymore.”
For his job, he can spend up to $300 a month on gas with his SUV.
“The more kilometers you drive, the more often the oil is changed [75$] and tires [800$ pour l’achat de quatre] arrive faster. All of this costs more than before, emphasizes Morin. In addition, there is faster wear and tear, while the cars are less durable than before.”
With five children, Steve Morin has no choice but to have two vehicles. In the photo he is accompanied by Zackary and Rosalie. “Photo provided by Steve Morin”
More expensive than ever
According to the Corporation of Automobile Dealers of Quebec, new vehicles have seen a spectacular 40% increase in the last two years.
The same applies to used vehicles, where prices are still high. Despite everything, demand remains.
“As vehicles are more expensive, customers’ consumer behavior is changing,” explains car broker Claude Douville. People have to dig deeper into their pockets.
“Consumers could get good deals in 2020 and 2021. An SUV could be rented for $400 per month. In September, the same vehicle was rented for more than $600 per month. Of course it depends on the manufacturer.”
There was then a significant increase in the number of rejections when it came to financing.
“Before the pandemic, it was normal to see a customer with a credit card with a $10,000 balance. It rose to $20,000. We saw a 20% to 25% increase in grant denials. People are being hit with their throats.”
Insurance on the rise
The costs of license plates and registrations as well as insurance premiums have increased over the past year.
Olivier Charpentier, general manager at Avantage Assurance Québec in Drummondville. “Photo provided by Olivier Charpentier”
“From what we are seeing now, premiums could increase by 7, 8 or even 9% in 2024,” says Olivier Charpentier, general manager of Avantage Assurance Québec. The insurers' profitability, the number of thefts and, above all, the rising claims costs are responsible for this.
“The amount of damage has increased significantly due to new technologies. A $5,000 claim can now easily rise to $12,000.”
Having a vehicle in 2024 isn't cheap
Vehicle prices
40% increase in the last two years for new and used vehicles
Maintenance and repairs
53% higher salaries for mechanics
Increase in environmental fees per tire by $4.50 since 2023
About $800 for four tires (17 inches)
beings
Average price between $1.55 and $1.67 in the Montreal region
Insurance
Potential premium increase between 7 and 9% in 2024
SAAQ
8% increase in contributions for passenger vehicles
See also:
Can you share information about this story?
Write to us or call us directly at 1 800-63SCOOP.