Don't know? Run the take-home calculator.
Max sticker price you can afford
$18,429
15% of net income, all-in (loan + insurance + gas + maintenance), with $3,000 down at 7.5% / 60 mo.
Total monthly budget (15% of net)
$750
Max loan payment
$309/mo
Estimated ongoing cost in Ontario
Insurance
$145/mo
Fuel
$171/mo
Maintenance
$125/mo
Total ownership cost ex-loan: $441/mo ($5,290/yr)
The Canadian Automobile Dealers Association reported the average new-car transaction price in early 2025 was about $52,000, with the average new-car loan running 84 months. On a $5,000/mo net income, that car alone costs roughly $720/mo financed — and that's before insurance, gas, and maintenance. Adding those typically pushes total monthly transportation cost above $1,200, or 24% of net income. The 15% guideline exists because cars depreciate aggressively (typically 50% in the first five years) and tying up a quarter of your net pay in a depreciating asset crowds out housing, retirement, and emergency savings.
Insurance is the single biggest provincial swing in cost. A standard 35-year-old driver with a clean record pays roughly $720/yr in Quebec versus over $2,000/yr in BC and Ontario — that's a $100+/month difference in your affordability ceiling. The cheapest provinces for total ownership in 2026 are Quebec, PEI, NB, and NS. The most expensive are BC and Ontario.