Financial Planners Urge Canadians to Ditch Cars for Savings

Financial planners are urging Canadians to consider ditching their cars amid soaring transportation costs that rank as the third-largest household expense after shelter and food. In urban areas with reliable transit and biking options, going car-free could save individuals tens of thousands of dollars over time, experts say, though it requires weighing lifestyle trade-offs.

Statistics Canada data highlights transportation's heavy financial burden, while Ratehub estimates that car-related expenses can exceed $139,000 over nine years, a figure calculated before recent gas price spikes. For many, the math favors alternatives like public transit, biking, and occasional ride-sharing, especially in cities such as Victoria and Ottawa where infrastructure supports such shifts.

Mark Lotocky, a fee-only financial planner at The Dixon Davis Group in Victoria, lived without a car from age 19 to 35 and described the experience positively. "I basically lived in a transit and biking-friendly space for essentially all my 20s and into my mid-30s," he said. "It is possible, and it is a great thing. I loved it." However, Lotocky noted hidden costs arise when venturing beyond transit networks, such...