Why Buying a New Car in Canada Feels Impossible in 2025

Is buying a new car in Canada turning into a luxury? In this episode, we explore the growing affordability gap that’s leaving everyday Canadians priced out of the new vehicle market.

Back in 2015, the average new car would cost around $30,000. Fast forward to 2025, and you’re looking at $45,000 — a 50% increase. Meanwhile, the average Canadian income has only grown 21.6%, climbing from $36,994 in 2015 to a projected $45,000 in 2025. What does this mean? Car prices are outpacing income at more than double the rate.

We break down what’s really happening behind the headlines:

• 📈 How income growth hasn’t kept pace with the soaring cost of vehicles

• 🚙 Why vehicle sticker prices have climbed so rapidly in just one decade

• 🔍 The affordability ratio that reveals why 2025 might be the year car ownership crosses a major financial threshold

You’ll hear how this shift impacts:

• Young professionals deciding whether to delay their first purchase

• Families trying to upgrade to safer, larger vehicles

• Seniors on fixed incomes weighing their independence against rising costs

We also explore what’s driving this trend:

• Global supply chain issues

• Rising material and labor costs

• The rapid rollout of tech-heavy and electric vehicles

• Market demand pushing prices ever higher

By 2025, the affordability ratio — the percentage of income needed to buy a new car — is expected to hit 100%. That’s not a statistic; that’s a wake-up call.

🎙️ Tune in for practical insights, smart data breakdowns, and a clear-eyed view of what this means for your financial plans, family transportation needs, and long-term vehicle strategies.

Whether you're considering a new ride, holding onto your current vehicle, or just trying to keep your budget in check — this episode is for you.

🧠 Episode takeaway: The dream of owning a new car in Canada is slipping away. It’s time we talked about it.