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Roam vs Buying

Roam vs. buying a car: which is right for you?

Buying outright has no monthly payment, but it costs roughly $31,640 upfront — the vehicle price plus HST — and it locks you into absorbing depreciation, maintenance, and eventual repair risk on your own. A Roam Long-Term plan trades ownership for flexibility: no capital tied up, no impact on your credit score, and one monthly bill that covers the car, insurance, and maintenance. Over a 5-year horizon the two come out within about $60 per month of each other at the midpoint, once you count everything.

Reviewed by the Roam team · Last updated April 22, 2026

Short answer

Roam: A month-to-month car subscription. You can drive a vehicle from the fleet for a few weeks or a few years, with no capital tied up, no depreciation risk, and no impact on your credit score. Maintenance is included in the monthly price. After your first 30 days you can cancel any time with 7 days' notice.

Buying: You pay cash for the vehicle outright and own it the day you drive off the lot. There's no monthly payment, but the capital is tied up in an asset that loses about 20% of its value in the first year and roughly 50% over five years. Insurance, maintenance, and eventual repairs are all on you.

Buying is the right choice if you have the capital on hand, plan to keep the car 5+ years, and you're comfortable absorbing depreciation and repair risk. Roam is the right choice for shorter horizons, for anyone who doesn't want to tie up $30,000 in a depreciating asset, and for one bundled monthly bill covering the car, insurance, and maintenance.

At a glance

  • Commitment

    Roam

    30-day minimum. Cancel anytime after with 7 days' notice.

    Buying

    No ongoing contract — but once you own the car, exiting means selling, which takes time and is market-dependent.

  • All-in monthly cost, compact sedan*

    Roam

    ~$791–$904/mo with HST — vehicle, Standard protection, maintenance, roadside.

    Buying

    ~$711–$861/mo on 5-year ownership once you count depreciation, opportunity cost, insurance, and maintenance.

  • Upfront cost

    Roam

    Refundable security deposit. No down payment.

    Buying

    ~$31,640 in cash for a new compact — $28,000 vehicle + $3,640 HST at the dealership.

  • Credit check

    Roam

    Soft check at approval. No impact on your credit score.

    Buying

    None if you pay cash — but the capital requirement is the gate instead.

  • Ownership

    Roam

    Return the car. No asset, no residual.

    Buying

    Fully owned on day one. The car is an asset on your balance sheet from the moment you drive off.

  • Depreciation risk

    Roam

    Roam absorbs it. Your monthly price doesn't change as the fleet ages.

    Buying

    You absorb 100%. A new compact typically drops about 20% in year one and about 50% by year five.

  • Capital tied up

    Roam

    Just the deposit.

    Buying

    $28,000+ tied up in a depreciating asset. At today's rates, that capital would earn about 4–5%/yr if invested elsewhere.

  • Insurance

    Roam

    Choose from protection plans provided by Roam at checkout.

    Buying

    Your personal auto policy, arranged through a broker. All-risk coverage is optional (no lender mandate).

  • Routine maintenance

    Roam

    Included in the plan price.

    Buying

    Often free for 1–2 years through a manufacturer program, then on you.

  • Out-of-warranty repairs

    Roam

    Covered by Roam's fleet maintenance.

    Buying

    Your responsibility once the manufacturer warranty expires — typically 3–5 years / 60,000–100,000 km depending on the brand (Toyota/Honda/Mazda 3yr/60k; Hyundai/Kia 5yr/100k). Repair costs rise with vehicle age.

  • Mileage

    Roam

    Customizable allowance from 2,000–3,000 km/month. Per-km overage at return.

    Buying

    Unlimited. Extra kilometres just translate to faster depreciation and wear — which you're already absorbing.

  • Used-car option

    Roam

    Roam's fleet is new or near-new, professionally maintained.

    Buying

    Buying used lowers upfront capital and slows depreciation — but adds inspection risk, warranty questions, and lemon concerns. OMVIC licenses Ontario dealers; private sales are as-is.

Total cost of ownership

The real all-in monthly cost

The headline numbers look extreme: a Roam entry-level plan is $450 to $550 per month plus protection, while buying outright is $0 per month after a roughly $31,640 cash outlay. The “$0 payment” framing misses two big costs that most buyers overlook. The first is amortised depreciation — the car is quietly losing value every month whether you sell it or not. The second is opportunity cost — the capital you tied up in the car isn't earning returns elsewhere. Once those are included, the monthly gap narrows a lot.

Compact sedan ($28,000 all-in), Ontario, cash purchase, 5-year hold

  • Monthly vehicle payment

    Roam

    $450–$550 (entry-level Long-Term plan)

    Buying

    $0 — vehicle paid for in cash up front

  • HST

    Roam

    ~$91–$104 on the monthly plan

    Buying

    ~$61 (one-time $3,640 on purchase, amortised over 5 years)

  • Insurance

    Roam

    ~$250/mo — Standard protection plan

    Buying

    $150–$300/mo — personal auto policy*

  • Routine maintenance

    Roam

    Included

    Buying

    ~$60/mo after the manufacturer's 1–2 year program

  • Wear items (tires, brakes, wipers, battery)

    Roam

    Covered by Roam's fleet maintenance

    Buying

    ~$40/mo amortised

  • Out-of-warranty repairs

    Roam

    Covered by Roam's fleet maintenance

    Buying

    ~$50/mo amortised over 5 years (rising in years 4+)

  • Roadside assistance

    Roam

    Included; level varies by plan

    Buying

    ~$12/mo (CAA) or bundled in your auto policy

  • Amortised depreciation†

    Roam

    N/A — you don't own the asset

    Buying

    ~$233/mo (new compact, ~$14K loss over 5 years)

  • Opportunity cost of capital‡

    Roam

    N/A — no capital tied up

    Buying

    ~$105/mo (4.5%/yr on $28,000 tied up in the vehicle)

  • Typical all-in monthly cost

    Roam

    ~$791–$904

    Buying

    ~$711–$861

*Ontario auto insurance premiums vary by more than 4x across driver profiles. †Depreciation is the value your car loses each month, realised as the gap between what you paid and what you eventually sell or trade it in for. ‡Opportunity cost is the return the capital would earn if it were invested elsewhere — a HISA, GIC, or index fund, roughly 4 to 5% per year at 2026 rates. It's a real cost even though nothing leaves your bank account for it. If the cash would otherwise sit in a chequing account earning 0%, the opportunity cost is lower.

The honest takeaway

The “no car payment” savings shrink quickly once you factor in depreciation and the opportunity cost of tying up $30,000+ in a depreciating asset. Over a 5-year horizon, a cash purchase runs roughly $0 to $130 per month cheaper than Roam at the midpoint — closer to a tie for drivers with above-average insurance. Three situations flip that math completely.
  • Your horizon is only 1 to 2 years. Depreciation hits hardest in the first year or two — a new compact loses about 20% of its value in year one alone. Over 12 months, that works out to more than $400 per month of depreciation on a compact. Buying is the most expensive option for short-horizon drivers, and Roam is dramatically cheaper in this window.
  • Your insurance profile is above average. Newcomers to Canada, drivers with a recent at-fault claim, and drivers of luxury or performance vehicles often pay $300 to $500+ per month for their personal auto policy. Roam's protection plan is a flat rate regardless of driver profile, so for this group Roam often matches or beats the all-in cost of owning.
  • You don't have roughly $31,640 in cash to spare. Buying outright means paying the full purchase price plus HST at the dealership — about $31,640 for a $28,000 compact. Financing the purchase adds interest on top (covered on our Roam vs. financing page). A Roam plan needs only a refundable security deposit.

Pricing is illustrative. Ownership TCO uses a $28,000 compact-sedan purchase paid in cash, held 5 years in Ontario, with depreciation based on published Canadian 5-year compact resale values, opportunity cost at 4.5% annual yield, and mid-market personal auto insurance. Your actual cost varies by vehicle choice, insurance quote, hold length, and driving profile. For current Roam plan pricing, see our inventory.

Which fits you

When each option is the better choice

When Roam is the better choice

  • You don't want to tie up ~$31,640 in a car

    Buying outright means paying the full purchase price plus HST at the dealership. Roam's only upfront cost is a refundable security deposit.

  • You don't want to absorb depreciation

    A new compact loses about 20% of its value in the first year. On Roam, that depreciation is our problem — your monthly price doesn't change as the fleet ages.

  • Your horizon is a few weeks to a few years

    Because depreciation hits hardest early, a short ownership window is the most expensive way to own a car. Roam's month-to-month pricing is built for exactly this window.

  • You'd rather keep your capital invested

    At 4 to 5% in a HISA or a low-risk portfolio, $28,000 earns about $1,260 a year. Tying that money up in a depreciating asset is a real opportunity cost.

  • You want one monthly bill, not a spreadsheet

    With Roam, the vehicle, maintenance, roadside, and the required protection plan all land on one invoice. Owning means managing a service schedule, a tire budget, repair estimates, and a separate insurance broker.

  • You might change vehicles in the next few years

    If your life might change — a growing family, a move, a new job — Roam's month-to-month structure means there's no asset to sell when your needs shift. Selling a car under three years old usually means taking the depreciation hit out of your own pocket.

  • You want a new or near-new car without the capital

    Roam's fleet rotates through new and near-new models that all meet Roam's fleet standards. Buying new means the full MSRP plus tax; Roam puts you in a similar car without the $31,640 cash outlay.

When Buying is the better choice

  • You're keeping the car 5+ years

    Longer ownership spreads depreciation over more months and amortises the upfront HST further. Past the 5-year mark, buying is typically the cheapest option on total cost of ownership.

  • You have the capital and don't need the liquidity

    If the roughly $31,640 is already sitting in a chequing account earning close to nothing, the opportunity cost is low. Buying avoids interest charges and the markup on bundled services entirely.

  • You drive 30,000+ km a year

    Ownership has no mileage cap and no overage fee. Those extra kilometres show up as faster depreciation and more wear, but you're absorbing both anyway.

  • You want full customisation and control

    The car is yours to modify — paint, aftermarket wheels, tow package, roof rack, tint, whatever you want.

  • You're buying used to lower the capital requirement

    A 3- to 5-year-old used compact costs roughly half what it did new and has already absorbed the steepest years of depreciation. The trade-offs are inspection risk and whatever warranty is left.

  • You dislike recurring payments

    Some drivers simply prefer owning outright — no monthly bill, no plan renewal, no subscription mental overhead. Buying fits that preference.

  • You want an asset you can sell or trade

    An owned car retains resale value. You can sell it, trade it toward the next one, or pass it on to a family member.

Roam's fleet

Clean, new vehicles from top brands

Drive the latest models from top brands, equipped with the newest tech. Every vehicle is professionally maintained and cleaned by Roam so it feels new every time.

Car Model

2025 Mazda CX-5

GX AWD

Gas · 5 Seats · Automatic

$714.00 /month

Pay monthly

Excl. add-ons, taxes

Car Model

2026 Hyundai Tucson

Preferred

Gas · 5 Seats · Automatic

$678.00 /month

Pay monthly

Excl. add-ons, taxes

Only 1 left
Car Model

2024 BMW X1 xDrive 28I

Gas · 5 Seats · Automatic

$1,105.00 /month

Pay monthly

Excl. add-ons, taxes

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How it works

Hassle-free and fast, from start to finish

  1. Book your vehicle online

    Browse our plans and book your vehicle online in minutes.

  2. Pickup or delivery

    Pick up your vehicle from one of Roam's service locations or use optional valet delivery.

  3. Drive as long as you like

    No long-term contracts. Pay as you go for as long as you need — cancel anytime after your minimum term.

  4. Make changes on the go

    Add drivers, extend your dates, or schedule a return from your Roam dashboard.

Contact Us

Let's talk

Questions about Roam and our services? Our friendly team is standing by to help. We'd love to hear from you.

Phone

1-647-560-5638

Email

inquiries@roam.auto

Business Hours

Mon–Fri, 9am–6pm

Questions

Frequently asked questions: Roam vs. buying

On a pure monthly-cash-out basis, buying outright is cheaper — there's no payment. On total cost of ownership, once you factor in depreciation, opportunity cost, insurance, maintenance, and repairs, the two are much closer. For a 5-year hold on a compact sedan in Ontario, buying comes to about $711 to $861 per month all-in, while a Roam Long-Term plan is about $791 to $904 per month. Buying wins modestly for long-horizon owners who have the capital sitting around. Roam wins for shorter horizons, for anyone without roughly $31,640 in spare cash, and for anyone who doesn't want to absorb depreciation themselves.

No. Depreciation is Roam's responsibility as the fleet owner — your monthly price doesn't change as the vehicle ages, and you don't sell the car at the end of your plan. Compare that to buying: a new $28,000 compact is worth about $14,000 after 5 years, and the $14,000 loss comes out of the owner's pocket at sale. On Roam, that's our problem.

For a new compact sedan held 5 years in Ontario, total cost of ownership runs about $711 to $861 per month. That breaks down as depreciation ($233), opportunity cost of capital ($105), insurance ($150 to $300), maintenance ($60), wear items ($40), repairs ($50), roadside ($12), and amortised HST ($61). A Roam Long-Term plan on a comparable vehicle is about $791 to $904 per month all-in with HST. The gap narrows or reverses for drivers with above-average insurance costs or ownership horizons under 3 years.

Often, yes, especially if you pick a reliable model at the 3- to 5-year mark. You skip the steepest depreciation years and the upfront capital requirement is smaller. The trade-offs are inspection risk, a shorter or exhausted manufacturer warranty, higher insurance rates on some used models, and the time cost of actually finding the right car. Roam trades that upside for a flat monthly bill and zero capital tied up.

It's the return you're giving up by tying money into a car instead of a HISA, a GIC, or an index fund. At today's 4 to 5% rates, $28,000 of capital would earn about $1,260 per year if invested elsewhere — roughly $105 per month. It's a real cost, even though nothing leaves your bank account for it. If the cash would otherwise just sit in a chequing account earning 0%, then the opportunity cost is much lower.

No. Roam runs a soft credit check at approval — it doesn't affect your credit score and doesn't show up on your credit report. Paying cash for a car involves no credit check at all. Financing a purchase, on the other hand, requires a hard credit inquiry and appears on your credit report as a reported loan.

Why drivers choose Roam

Drive without the $31,640 upfront or the depreciation risk

No capital tied up in a depreciating asset. No surprise repair bills you didn't plan for. A Roam Long-Term plan puts you in a new or near-new vehicle with month-to-month flexibility, and you can cancel any time after your first 30 days.

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Methodology

Methodology, calculations, and sources

We show our work so you can check it. If anything here looks wrong or out of date, let us know and we’ll update it.

How we got the numbers

  1. Total upfront cost of a cash purchase

    $28,000 (vehicle all-in) + 13% HST=$28,000 + $3,640 = $31,640

    Vehicle price assumes a compact sedan at ~$26,140 MSRP plus typical freight/PDI (~$1,795) and AC tax, rounded to $28,000. Ontario HST is 13%.

  2. HST amortised over 5 years of ownership

    $3,640 ÷ 60 months=≈ $61/mo

    Spreads the one-time dealership HST over a 5-year hold so it's comparable to Roam's monthly HST line.

  3. Amortised depreciation over 5 years

    $28,000 × ~50% loss ÷ 60 months=$14,000 ÷ 60 ≈ $233/mo

    Compact sedans typically drop about 20% in year one and roughly 50% of MSRP by year five based on published Canadian resale data. The $14,000 value loss is realised as the gap between purchase price and resale value when you sell.

  4. Opportunity cost of capital

    $28,000 × 4.5% annual yield ÷ 12 months=$1,260 ÷ 12 = $105/mo

    Rate assumption: 4.5%/yr is mid-market for a 2026 Canadian HISA or a conservative portfolio. If the cash would otherwise sit in a chequing account earning 0%, the opportunity cost is lower. Use your own expected yield to personalise.

  5. 5-year all-in monthly cost of ownership (range)

    $0 (vehicle) + $61 (HST amortised) + $150–$300 (insurance) + $60 (maintenance) + $40 (wear) + $50 (repairs) + $12 (roadside) + $233 (depreciation) + $105 (opportunity cost)=≈ $711–$861/mo

    Compared to a Roam Long-Term plan at ~$791–$904/mo on a comparable vehicle. Midpoint gap is about $60/month in buying's favour; above-average insurance profiles can close or reverse the gap.

Sources and further reading

Last updated April 22, 2026. Vehicle prices, resale values, interest rates, and insurance premiums change. Verify current numbers before making a purchase decision. For current Roam pricing, visit our inventory.