How much does it cost to own a car?Cars can be purchased in many different price ranges. For a basic idea of prices of different types and ages of cars, see Auto Trader.
There are many costs to owning a car in addition to the price of the car itself. According to the Canadian Automobile Association, it can cost up to $14,845 a year to own and drive a car. Expenses include insurance, licence plates, parking, gasoline, maintenance and depreciation.
If you buy the car from a dealer you will need to pay sales tax on the price of the car. When buying a car from a private person you pay the tax to the Ministry of Transportation Drivers and Vehicles Office when you get your license plates.
If the car is used, you will also need to pay for a safety inspection at a government-approved garage and an emissions test at a certified Drive Clean centre.
Every car driven in Ontario must have a valid car insurance policy. You will need to have proof that you have insurance in order to get license plates. All cars require license plates, which must be renewed every year just before the owner’s birthday. To register a car or for answers to questions, you can go to the Ministry of Transportation Drivers and Vehicles Office in Peterborough. To read more about licensing a car in Ontario, see the Ministry of Transportation’s Vehicle Licensing section.
The amount you spend on gasoline will depend on the efficiency of the car and, of course, the amount of driving you do.
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