Cycling vs. driving cost is becoming a bigger consideration for commuters as the price of owning a vehicle continues to rise across North America. While most people think about fuel prices first, the true cost of driving includes insurance, maintenance, parking and depreciation—expenses that can add up to thousands of dollars every year.
For many people, one of the biggest reasons to ride a bike isn’t fitness or climate change—it’s money.
With the cost of living continuing to climb across Canada and the United States, transportation has become one of the largest household expenses. Fuel prices may grab the headlines, but they’re only part of the story. Insurance premiums are rising, parking fees continue to increase in many cities, vehicle maintenance has become more expensive, and the biggest cost of all—depreciation—often goes unnoticed.
According to AAA, the average cost of owning and operating a new vehicle in the United States is now about US$12,300 per year, or roughly US$1,025 every month. In Canada, estimates put annual ownership costs at approximately C$16,500, depending on the vehicle and where you live.
That means replacing even a portion of your driving with cycling—or eliminating a second car altogether—could save thousands of dollars each year.
Cycling vs. driving a car in 2026
Many drivers think fuel is their largest expense, but it’s usually not.
AAA’s latest annual Your Driving Costs study found that depreciation is the single biggest cost of owning a vehicle, followed by financing, insurance, fuel and maintenance.
Average annual vehicle ownership costs (United States)ExpenseAverage annual costDepreciationUS$4,680FuelUS$1,830InsuranceUS$1,715Maintenance & RepairsUS$1,245Registration, taxes and feesUS$815Total annual ownership costUS$12,297
The exact numbers vary depending on the vehicle, where you live and how much you drive, but the bottom line is that gas accounts for just a fraction of the total cost of driving.
What does owning a car cost in Canada?
Canadian drivers face many of the same expenses, although insurance, fuel and parking costs vary significantly between provinces.
Recent Canadian estimates by Ratehub.ca place average ownership costs at approximately C$1,373 per month, or about C$16,500 annually.
Typical yearly expenses include:
Insurance: about C$2,000 or moreFuel: roughly C$2,400Maintenance and repairs: approximately C$1,200Parking: hundreds—or even thousands—of dollars annually depending on where you liveDepreciation: often the single largest cost over the life of the vehicle
If you commute into downtown Toronto or Vancouver, parking alone can cost several hundred dollars each month.
Bicycle commuting can save a family thousands of dollars every year
The hidden expense: depreciation
Depreciation is the cost most drivers never see because they don’t pay it directly.
Every kilometre driven reduces a vehicle’s resale value. New vehicles lose value quickly during their first few years, making depreciation the largest annual ownership expense for many drivers.
That means every trip you replace with a bike doesn’t just save fuel—it also reduces wear and tear and helps preserve the value of your vehicle.
Cycling vs. driving: How much can cycling save?
You don’t have to sell your car to see meaningful savings, although it’s not a bad idea honestly.
Imagine replacing just some of your typical commute with cycling.
If you bike 15 kilometres each way, three days per week, you’ll avoid driving roughly 4,500 kilometres every year. And you’ll be a lot happier.
That can reduce:
fuel consumptionmaintenance coststire wearoil changesparking feesdepreciation
If your employer charges for parking, or you pay daily downtown rates, the savings can grow even faster.
For many households, cycling enough to avoid purchasing a second vehicle can save thousands—or even tens of thousands—of dollars over several years.
Can an e-bike save even more?
For longer commutes or hillier cities, an electric bike can make replacing car trips much easier.
Even after purchasing an e-bike, annual operating costs are remarkably low compared with a car.
Charging an e-bike battery costs very little per charge, while maintenance usually consists of tires, brake pads and routine tune-ups.
Many riders find that an e-bike allows them to replace trips they would never have considered riding on a conventional bicycle especially if they have longer commutes to work.
What about bad weather?
Weather is one of the biggest reasons people hesitate to bike more often. Although, bike commuters in the know understand there is no bad weather, just bad clothing options and gear choices.
But, even if you’re not quite ready to bike in pouring rain, replacing every car trip isn’t necessary to realize some serious savings.
Many commuters ride only during spring, summer and fall, or bike a few days each week while driving or taking transit on other days. Even replacing two or three driving days each week can noticeably reduce annual transportation costs.
Cycling isn’t just cheaper—it’s healthier
Unlike a car, a bicycle can actually improve your health while lowering your transportation costs.
Regular cycling can reduce the risk of cardiovascular disease, improve mental health and fitness and lower healthcare costs over time, if you live south of the border.
Instead of paying for fuel while sitting in traffic, you’re building physical activity into your daily routine.
Is cycling worth it financially?
For many North Americans, the answer is yes.
The average vehicle now costs well over US$12,000 per year to own in the United States and roughly C$16,500 annually in Canada. Fuel is only one piece of the puzzle. Insurance, maintenance, parking and depreciation often add up to far more than most people realize.
You don’t have to become car-free to save money. Replacing even a portion of your weekly driving with cycling can lower transportation costs, reduce vehicle wear and tear, and make your daily commute healthier at the same time.
As the cost of living continues to rise, one of the simplest ways to save money may be sitting in your garage—or hanging in your bike room.
SourcesAAA, Your Driving Costs 2025Ratehub.ca, What Is the Total Cost of Owning a Car in Canada?Statistics Canada (transportation and household expenditure data)Natural Resources Canada (fuel consumption resources)SEO FAQ
How much does it cost to own a car in 2026?
The average annual cost of owning and operating a new vehicle is about US$12,300 in the United States and roughly C$16,500 in Canada, including fuel, insurance, maintenance, depreciation and other expenses.
Can cycling save money?
Yes. Replacing driving trips with cycling can reduce spending on fuel, parking, maintenance and vehicle depreciation. Some households save thousands of dollars each year, especially if cycling allows them to avoid owning a second car.
What is the biggest cost of owning a car?
For many drivers, depreciation is the largest expense. As a vehicle ages and accumulates mileage, it loses value, often costing more annually than fuel or maintenance.
Is an e-bike cheaper than a car?
In almost every case, yes. Even after the initial purchase, an e-bike costs only a fraction of what it costs to own and operate a car, making it a cost-effective option for many commuting and everyday trips.