With inflation and various maintenance costs, the use of two vehicles for work and leisure has become a luxury that is increasingly difficult to afford for families who really need it.
• Read also: Owning a car in Montreal costs 65% more in 2024 than in 2019
Numerous increases in the automotive industry have forced a North Shore family to be creative in their difficult choices.
For example, instead of being tempted by an electric car, both parents decided to buy two cars for the same price.
“I bought an SUV truck in 2022 and an old car to meet our needs,” explains Steve Morin, who is a laborer on construction sites. For the second car, it’s a stroke of luck.”
“It was impossible for us to have two payments at the same time. To buy another one that is more recent, we will have to wait until the loan on the truck is over.”
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If Steve and his wife Cynthia Martineau chose this avenue, it is in particular because of the cost of gasoline. Their van was no longer economical.
“It was a gas-guzzling vehicle [de 18 à 20 litres aux 100 km]. At the time, a liter of gasoline was $0.85. In the end, it cost us between $35 and $40 more on our gas bill per week. It no longer made sense.”
For his job, he can spend up to $300 on gas per month with his SUV.
“The more miles you drive, the more oil changes [75$] and tires [800$ pour l’achat de quatre] arrive more quickly. All this costs more than before, underlines Morin. In addition, wear is faster while 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 increase of 40% over the last two years.
Similar situation for used vehicles, where prices are still high. Despite everything, the demand remains there.
“Given that vehicles are more expensive, this changes customers’ consumption habits,” explains car broker Claude Douville. People need to dig deeper into their pockets.
“Consumers could make good deals in 2020 and 2021. An SUV could be rented for $400 per month. In September, the same vehicle was renting for more than $600 per month. Of course, it depends on the manufacturers.”
Then, when it came to financing, the number of refusals saw a marked increase.
“Before the pandemic, it was normal to see a customer with a credit card with a balance of $10,000. It went up to $20,000. We saw an increase of 20% to 25% more refusals of funding. People are being punched by the throat.”
Insurance on the rise
The cost of plates and registrations and insurance premiums have all increased in the past year.
Olivier Charpentier, general manager at Avantage Assurance Québec in Drummondville.
“Photo provided by Olivier Charpentier”
“With what we are currently seeing, premiums could rise by 7, 8 or even 9% in 2024,” mentions the general director at Avantage Assurance Québec, Olivier Charpentier. The profitability of insurers, the number of thefts, but above all the increase in claims costs are responsible for this.
“Claim amounts have increased sharply due to new technologies. A $5,000 claim can easily climb to $12,000 now.”
Having a vehicle in 2024 is not cheap
Vehicle prices
40% increase over the past two years on new and used vehicles
Maintenance and repairs
53% increase in mechanics’ salaries
Increase of $4.50 in eco-fees per tire since 2023
Around $800 for four tires (17 inches)
Essence
Average price between $1.55 and $1.67 in the Montreal region
Insurance
Potential increase between 7 and 9% in premiums in 2024
SAAQ
8% increase in contributions from passenger vehicles