Are cars cheap in Alberta?

Are cars cheap in Alberta?

Cars have become a necessity in today’s fast-paced life. In smaller towns where there is a lack of public transport personal cars become the only means of traveling from one place to another. Owing cars has allowed people to live farther away from their place of work. Cars are a reliable mode of transportation that provides their owner with unlimited independence when going from point A to B. Your personal car is like your property and can act as a valuable investment. 

Compared to provinces like British Columbia and Ontario, Alberta has relatively cheap cars. There are not many taxes when purchasing. The cost of purchasing a car is probably the largest amount you will have to pay and that too upfront otherwise there are not many costs attached.

Owning a car is a requirement in Canada because it is a large country and does not have many options of public transport especially outside of larger cities. When buying a car, the cost is the most important factor for many people. In Canada, many other hidden costs add up in the total cost of buying and maintaining a car.  

The first thing that makes a difference in the cost of a car is if you are buying from a private seller or the Merchant seller. If you live in a province where the laws regarding selling personal cars are not that strict then buying from a private seller is a cost-effective solution. Secondly, insurance is mandatory in Canada which adds to the maintenance cost of your car. Lastly, a driver’s license is a must-have before you decide to purchase a car. This not only adds to the cost of buying a car but also adds a technical hurdle that you must overcome before you can think of actually purchasing the vehicle. Lastly, aspects such as the provincial tax on cars and the cost of fuel are important factors to consider when you think about the cost of buying and maintaining a car.

It is feasible to have an estimated budget in mind based on market research before you decide to purchase a car. Moreover, it is advisable to add additional costs and maintenance to this budget to determine what the cost of owning a car is.


Alberta is located in the western part of Canada. It is a province of vast mountains, prairies, and coniferous forests. It is the 6th largest province in Canada, with Edmonton as its capital. Overall, the province has many great cities and a population of over 4 million. Although the province has a number of large to medium cities most of them do not have adequate public transport and so owning a car is a necessity. The cost of owning a car in Alberta is not too much, however, it is by no means among the cheaper provinces to own a car such as Quebec.


First of all, let’s discuss the taxes that can be imposed on the sale and ownership of cars in Alberta. The province is one of the more tax-friendly provinces in Canada. So you can spend less time worrying about the tax and focus that money elsewhere. Alberta is one of the few provinces in Canada, that does not charge an additional tax on the sale of private vehicles. Moreover, in Alberta, if you buy a car from a dealer there is no PST, RST, or QST tax. However, if you are purchasing from a dealer or a merchant seller then there is a federal tax. A 5% GST is imposed on you.

Type of car 

This is another factor that adds to the cost of buying a car. Although this is independent of the province. All cars vary in cost. The type of car you buy will determine the major chunk of costs in your purchase. As a general rule buying the same car privately will cost you less than if you buy it brand new from a dealer. The built and model of the car determine its price as well. And lastly, if the cost will also vary depending on if the car is manual or automatic.


Insurance is a mandatory feature when buying a car. It is implemented even if you lease, finance, or own a car.  It is important for the security of your vehicle. No one wants to spend a lot of money on their dream car. And then not be able to get it fixed should they be involved in an accident. According to the law in Alberta, car insurance covers liability and accident benefits. Liability costs mean that if you damage property then the insurance company will pay on your behalf. Accident costs include medical and other additional expenses. You will receive that if you experience an accident. On average auto insurance costs $100 per month in Alberta. However, the insurance cost is calculated based on a lot of factors such as the value of your car, your driving record, and the area in Alberta that you live in.


Buying fuel is a regular purchase that comes with owning a car. The cost of fuel wholly depends on your usage and the distance that you travel. However, the cost of fuel varies from province to province in Canada. The average tank size is usually between 40 – 60 liters. In Alberta, the cost of fuel for every 50 liters is roughly around 40$. Now the price of fuel is subject to change and spikes and downfalls are a common occurrence. Moreover, the type of car you drive has a big role to play in determining the overall cost of fuel. If you drive a car that is fuel efficient then you would not have to spend large amounts of money on fuel.

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