Fuel, insurance, registration, maintenance and depreciation: the real annual budget, line by line.
The monthly payment is only the tip of the iceberg. Between gas around $2 a litre in Montreal in September, insurance that has been rising for ten years and lost value, a compact car can easily cost $8,000 to $12,000 a year. Here's the math, line by line, using Quebec numbers.
A new $32,000 compact car, driven 15,000 km a year, using 7 L/100 km, with an owner who lives in the Montreal area.
| Item | Annual cost | Detail |
|---|---|---|
| Depreciation | about $3,200 to $6,400 | About 20% in year 1, then less |
| Fuel | about $1,900 | 1,050 litres at about $1.85 |
| Loan interest | about $1,000 to $1,800 | Depending on rate and term |
| Insurance | about $1,070 | Average Quebec premium in 2025 |
| Maintenance and tires | about $700 to $1,100 | Oil changes, brakes, winter tire swaps |
| Registration | about $350 to $400 | Montreal area, see below |
| Driver's licence | about $50 | Depending on your record |
| Total | about $8,300 to $12,700 | Or $690 to $1,060 a month |
Not counting parking, tolls, car washes and tickets.
In the Montreal metropolitan area, registering a passenger vehicle costs about $396 in 2026. That includes a public transit contribution of about $183, which rose sharply in 2025. Elsewhere, the municipal tax is much lower, for example about $61 in Quebec City. Quebec is also giving a temporary $50 reduction on renewals for gas, diesel and hybrid vehicles from September 1, 2026, to August 31, 2027.
According to Quebec's financial markets authority (AMF), the average premium for a passenger vehicle in Quebec reached $1,067 in 2025, up 5.5% and a tenth straight increase. Your premium can differ a lot based on age, record, postal code and model. Some frequently stolen vehicles cost much more to insure.
Our quiz takes your budget and how much you care about fuel use into account, to suggest vehicles that cost less to run, not just to buy.