Automotive Experts Advise Buyers to Prioritize Fuel Efficiency as Gas Prices Stabilize at Record Highs
Those in the market for a new vehicle should factor the rising cost of fuel into their budgets, experts say.
“When you’re looking at buying a car, it’s more than just the sticker price on the vehicle,” said Morgan Roberts, vice-president at RH Insurance, adding insurance, repairs and parking are some other additional costs to consider.
Canadians are paying an average of $231 monthly on fuel, according to a recent analysis by Ratehub.ca. That figure was 40 per cent higher than before the war in the Middle East put upward pressure on prices.
Before the outbreak of hostilities at the end of February, the average monthly cost of owning a car in Canada stood at $1,373, Ratehub.ca said. The rise in gasoline prices has brought that number up to $1,439.
The oil shock helped push prices higher in March, with Statistics Canada reporting the annual rate of inflation accelerated to 2.4 per cent last month. StatCan said March’s 21.2 per cent monthly increase in the price of gasoline was the largest on record.
“Generally, a third of (car) ownership costs go straight to gas prices,” said Kristine D’Arbelles, managing director for public affairs at the Canadian Automobile Association.
“That’s a pretty big chunk of your ownership costs. If the gas prices are going to go up, then that’s going to affect you a lot more,” she said.
CAA said the national average price of gas stood at 169.1 cents per litre on Monday, compared to 131.4 cents per litre one year ago.
However, consumers may see some protection from the full effect of higher fuel prices. The federal government has temporarily halted federal excise taxes on fuel until Labour Day. The move is expected to remove as much as 10 cents from a litre of gas.
Roberts said it is not yet clear what will happen when the tax pause ends.
She said the decision to buy a vehicle is a personal one and there are risks either way.
“If you’re looking for a car right now and you want to purchase a car right now and you can afford it after you’ve looked through everything, then go for it,” she said.
“But putting it off — the risk is there, too. You don’t know what’s going to happen. You don’t know if everything’s going to go up further. It could go down, but no one knows yet.”
For consumers feeling the pressure, D’Arbelles said hybrid or electric vehicles could offer savings.
“There are other options where you can almost completely eliminate gas prices,” she said, adding that electric vehicles may not be a solution for everyone, depending on lifestyle and location.
Car owners looking to save on fuel can also consider fuel-efficient driving practices, D’Arbelles said, which can save drivers up to 20 per cent annually.
“Simple things like avoiding jackrabbit starts, coasting to decelerate, combining your trips, not idling … putting all those little tips together can actually help you save some dollars and cents when it comes to gas,” she said.
“And it also happens to be good for the environment.”
This article was first reported by The Canadian Press
The Canadian Press
