Short answer: the real cost of owning a car in Quebec is much more than the monthly payment. Add depreciation, financing interest, insurance, SAAQ registration and licence fees, fuel or electricity, winter tires, maintenance, repairs and parking. For many drivers, depreciation is the single biggest cost, even though it never shows up as a bill.
What are the costs of owning a car?
Car costs fall into two groups.
Fixed costs (you pay them even if the car stays parked)
- Depreciation: the value your car loses every year.
- Financing: interest on your loan or the finance charge on a lease.
- Insurance: private coverage for property damage and civil liability.
- Registration and driver’s licence: paid to the SAAQ, which includes the public insurance contribution for bodily injury.
- Parking: at home, at work or a monthly permit.
Variable costs (they grow with kilometres)
- Fuel or electricity.
- Maintenance: oil changes, filters, tire rotation, brake fluid.
- Repairs and wear parts: brakes, battery, tires, suspension.
- Tolls, car washes and accessories.
How much does depreciation cost?
Depreciation is the difference between what you pay for a car and what it is worth when you sell it. New cars usually lose the most value in their first few years, then the decline slows down. That is why buying a lightly used car is often the cheapest way to own a reliable vehicle. Our guide on how to buy a used car in Quebec explains how to do it safely.
To estimate your own depreciation: check what similar cars of the same model, age and mileage are listed for, compare with today’s price and divide the difference by the number of years.
How much does financing add?
Interest can add thousands of dollars over a long loan. Use our Quebec car loan calculator to see the total interest for your price, rate and term. A shorter term and a larger down payment reduce this cost.
How does car insurance work in Quebec?
Quebec has a mixed system: bodily injury is covered by the public plan administered by the SAAQ, while property damage and civil liability are covered by private insurers. Your premium depends on your driving record, vehicle, postal code and coverage. Read how car insurance works in Quebec for details, and compare quotes every year.
What does the SAAQ charge?
Every year you pay to keep the vehicle registered, and you also pay for your driver’s licence. Amounts depend on the vehicle type, region, engine size for some vehicles, and your driving record. Current rates are published by the SAAQ.
How much will I spend on fuel or electricity?
Use this simple formula:
Yearly fuel cost = (kilometres per year / 100) x consumption (L/100 km) x price per litre
Example: 18,000 km per year, a car using 8 L/100 km and gas at $1.60/L = 180 x 8 x 1.60 = $2,304 per year.
For an electric car, replace litres with kWh and use your electricity rate. Home charging is usually much cheaper than fast charging. Compare both options in EV vs hybrid in Quebec.
What about winter costs?
Winter tires are mandatory in Quebec during the legal winter period, so most drivers own two sets of tires, plus rims or seasonal swap fees. Storage, block heaters, remote starters and extra washing to fight road salt also add up. See our winter tire rules in Quebec.
How much should I budget for maintenance and repairs?
Follow the maintenance schedule in your owner’s manual and set aside money each month for wear items. Costs increase with age and kilometres. Useful benchmarks:
Sample yearly budget (example only)
The figures below are hypothetical, chosen to show the method. Replace each line with your own numbers.
| Expense | Example amount per year |
|---|---|
| Depreciation | $3,500 |
| Loan interest | $1,200 |
| Private insurance | $1,000 |
| SAAQ registration and licence | $500 |
| Fuel (18,000 km) | $2,304 |
| Maintenance and repairs | $1,000 |
| Winter tires (spread over their life) | $250 |
| Parking and washes | $400 |
| Total | $10,154 |
In this example, the car costs about $846 per month, or about 56 cents per kilometre ($10,154 / 18,000 km).
How can I lower the cost of owning a car?
- Buy a reliable used car instead of new.
- Keep the car longer: depreciation slows with age.
- Choose a fuel-efficient model, a hybrid or an EV if it fits your driving.
- Shop your insurance yearly and ask about bundling or usage-based programs.
- Do maintenance on time to avoid bigger repairs.
- Avoid very long loans that maximize interest.
- Check whether a rebate applies before buying an EV (see electric car rebates in Quebec).
This guide is general information and does not replace advice from a financial professional.
FAQ
What is the biggest cost of owning a car?
For most new cars, depreciation. For older cars, repairs and fuel often take the lead.
How much should I spend on a car?
There is no official rule. Many people try to keep the total cost of the car, not just the payment, at a comfortable share of their budget. Compare it with your other fixed expenses before signing.
Is it cheaper to own an electric car in Quebec?
Often the energy and maintenance costs are lower, but the purchase price and depreciation can be higher. Calculate both with your own kilometres.
Does the SAAQ fee include insurance?
Part of what you pay to the SAAQ funds the public bodily injury plan. You still need private insurance for civil liability and damage to vehicles.
