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    Most and least affordable EU countries to own a car in 2024 revealed

    • A new study reveals which European countries are the most affordable for car ownership- with Switzerland ranking top

    • The findings consider fuel prices, vehicle taxes, insurance costs and the average salary of each European country

    • The least affordable destination came out as Turkey when the average ownership costs are scaled against the typical salary

    • An expert offers insight into understanding the factors of car ownership affordability

    A recent study conducted by experts at Vignetteswitzerland.com has unveiled the most and least affordable European countries for car ownership.

    The research considered factors such as fuel prices, vehicle taxes, and insurance costs, compared to average salaries, to assign each place a unique score to reveal where owning a car is the least financially draining.

    The higher the index score out of ten, the cheaper that country's ownership costs are compared to their typical salaries.

    Top ten most affordable European countries for car ownership

    Rank Country Average Car Ownership Price Average Monthly Net Salary Final Score (Out of 10)
    1 Switzerland €46,979 €5,569 10.00
    2 Republic of Ireland €46,979 €3,367 7.72
    3 Luxembourg €39,380 €3,699 6.83
    4 France €29,331 €2,464 5.43
    5 Spain €29,485 €1,910 5.18
    6 Netherlands €36,033 €3,145 5.00
    7 Austria €34,805 €3,269 4.90
    8 Denmark €42,681 €4,149 4.69
    9 Germany €37,504 €2,781 3.95
    10 Italy €27,548 €1,740 3.84
    Switzerland Flag

    1. Switzerland

    Topping the list as the most affordable European country for car ownership is Switzerland, with an astonishing index score of a perfect ten.

    Despite its high standard of living, Switzerland provides affordable car ownership options, with the lowest expenses associated with fuel, taxes, and insurance when subtracted from the average net salary of €5,569.

    Ireland Flag

    2. Ireland

    Following behind is the Republic of Ireland, securing the second spot on the index with a score of 7.7 out of ten. Ireland provides a competitive market for car buyers who are looking for affordable options.

    The country has a monthly average gross salary of €3,367, making it accessible for residents to own a car. Here, the average price of a car stands at €30,495, with an annual vehicle tax of €2,438.

    Luxemburg Flag

    3. Luxemburg

    Luxembourg claims the third position with a score of 6.8 out of ten. Despite its small size, Luxembourg's thriving economy offers relatively low expenses for vehicle taxes, fuel, and insurance premiums.

    The average fuel price stands at €1.29 per liter, with an average car price of €39,380 and an average monthly salary of €3,699. This combination makes Luxembourg an appealing choice for car buyers seeking affordability without compromising quality.

    France Flag

    4. France

    France secures the fourth place on the index with a score of 5.4 out of ten. The country offers reasonable expenses associated with fuel prices, vehicle taxes, and insurance premiums compared to neighboring nations.

    With an average monthly salary of €2,464, an average car price of €29,331, and an average annual vehicle tax of €1,911, France stands out as an attractive option for those looking to maximise affordability.

    Sapin Flag

    5. Spain

    Spain rounds up the top five most affordable countries for car owners, boasting a score of 5.2 out of ten.

    With an average monthly net salary of €1,910, an average fuel price per liter of €1.36, an average car price of €29,485, and an average annual vehicle tax of €1,068, Spain offers one of the best markets for those seeking cost-effective cars.

    While Switzerland leads in terms of affordability, there are notable contrasts on the other end of the scale. Norway, Finland, and Turkey struggle with the highest costs associated with car ownership.

    Norway, with its index score of 0.76, faces challenges in providing affordable car ownership options to its residents. While an average net salary stands at €3,442, the average €44,197 car ownership price is the second highest in Europe.

    Finland, despite its well-developed economy, experiences higher-than-average expenses for fuel, vehicle taxes, and insurance costs, contributing to the county’s second-lowest affordability rating of 0,57.

    Turkey stands out as the least affordable, with an index score of 0. The high contrast between the average monthly salary of €627 and the average car price of €38,642 makes it the most expensive European country to own a car.

    Speaking on the findings, M.E.Wijnmalen CEO of Vignetteswitzerland.com, said: "The study underscores the balance between quality of life and financial considerations when it comes to owning a car. It's interesting to see how different countries prioritize affordability amidst varying economic factors.

    “In today's dynamic economic climate, understanding the nuanced factors influencing car ownership affordability is crucial for individuals and policymakers alike.

    “Switzerland's position as the most affordable country for car ownership is not a result of low expenses, but a testament to its balanced economic policies.

    “Similarly, Luxembourg's strong economy makes it a top choice, offering affordability without sacrificing quality. France and Spain also provide a balanced mix of reasonable costs and favorable conditions, ensuring a diverse landscape of affordable car ownership in Europe.

    "The study conducted by Vignetteswitzerland.com offers more than just data – it offers a nuanced understanding of the factors shaping car ownership affordability in Europe."

    ENDS

    If using this story, please credit and link to: vignetteswitzerland.com, as a linked credit allows us to keep supplying you with future content that you may find helpful. 

    Methodology: The full dataset can be viewed here.

    A total of 5 factors were used to compile the index. The raw data for each factor was cleaned, checked and standardised on the same scale from 0 to 10, where 0 and 10 represent the worst and best values present in the data, to allow for accurate comparison between factors. Factors for which a high score would be negative were subtracted from 10 to invert their scoring.

    A weighting was then assigned to each factor reflecting its importance within the analysis. The factors, their source and their percentage weightings are as follows:

    Fuel Price, www.cargopedia.net, 20% weighting

    Vehicle Sales Tax, www.worldpopulationreview.com, 20% weighting

    Vehicle Tax, www.acea.auto, 20% weighting

    Car Prices, www.theicct.org, 20% weighting

    Insurance Costs, www.autocosts.info, 20% weighting

    Once the weightings were assigned, the total score for the factors was calculated, producing an overall index score out of 10 for each entry, upon which the final ranking is based.

    Affordable Eu Country Affordable Eu Country Affordable Eu Country Affordable Eu Country

    Request

    This campaign will look to reveal which European countries are the most expensive for car ownership. Please create an index to rank each destination according to the average fuel price, tax, and price of a passenger car, as well as the average insurance costs.

    Please compare the above costs to the average salary in each location to identify who is spending the largest proportion of their income on their vehicle.

    Methodology

    1. Data was collected from the requested sources, and found for the ones where a source was not specified.
    2. The country data in each data source were indexed using a min/max function.
    3. The average monthly salary data was also indexed in this way.
    4. The average index of all the costs was subtracted from the monthly salary index, which was then normalised.

    PR Methodology

    A total of 5 factors were used to compile the index. The raw data for each factor was cleaned, checked and standardised on the same scale from 0 to 10, where 0 and 10 represent the worst and best values present in the data, to allow for accurate comparison between factors. Factors for which a high score would be negative were subtracted from 10 to invert their scoring.

    A weighting was then assigned to each factor reflecting its importance within the analysis. The factors, their source and their percentage weightings are as follows:

    Fuel Price, www.cargopedia.net, 20% weighting

    Vehicle Sales Tax, www.worldpopulationreview.com, 20% weighting

    Vehicle Tax, www.acea.auto, 20% weighting

    Car Prices, www.theicct.org, 20% weighting

    Insurance Costs, www.autocosts.info, 20% weighting

    Once the weightings were assigned, the total score for the factors was calculated, producing an overall index score out of 10 for each entry, upon which the final ranking is based.

    Notes

    - Datasets for European countries frequently have missing data, shown in the summary are countries that had at least 3 out of the 5 sets of data available.

    Summary

    The score is the normalised index of the average costs subtracted from the average salaries.

    The higher the score, the less that country's costs are compared to their salaries.

    Country Ranking
    Turkey 0
    Finland 0.57
    Norway 0.76
    Portugal 0.92
    Belguim 2.27
    Greece 2.93
    United Kingdom 3.1
    Sweden 3.78

    Index

    SUM of Normalised
    Spending the most → Turkey 0
    Finland 0.57
    Norway 0.76
    Portugal 0.92
    Belguim 2.27
    Greece 2.93
    United Kingdom 3.1
    Sweden 3.78
    Italy 3.84
    ← Spending the least Germany 3.95
    Denmark 4.69
    Austria 4.9
    Netherlands 5
    Spain 5.18
    France 5.43
    Luxembourg 6.89
    Republic of Ireland 7.72
    Switzerland 10

    Fuel Prices

    Country Gasoline Diesel LPG Average
    Iceland €2.11 €2.17 €2.14
    Denmark €2.06 €1.85 €1.95
    Norway €2.02 €1.88 €1.95
    Finland €1.80 €1.85 €1.82
    Republic of Ireland €1.73 €1.73 €1.73
    Switzerland €1.87 €2.02 €1.19 €1.89
    Austria €1.60 €1.67 €1.64
    Netherlands €2.00 €1.80 €0.84 €1.54
    France €1.84 €1.78 €1.00 €1.54
    Sweden €1.69 €1.69 €1.23 €1.53
    Germany €1.79 €1.74 €1.05 €1.53
    Greece €1.91 €1.70 €0.89 €1.50
    United Kingdom €1.70 €1.80 €0.93 €1.48
    Italy €1.86 €1.80 €0.71 €1.46
    Cyprus €1.41 €1.51 €1.46
    Andorra €1.46 €1.38 €1.42
    Albania €1.81 €1.84 €0.57 €1.41
    Portugal €1.74 €1.62 €0.83 €1.40
    Belgium €1.65 €1.77 €0.72 €1.38
    San Marino €1.75 €1.67 €0.69 €1.37
    Serbia €1.58 €1.70 €0.81 €1.36
    Spain €1.62 €1.53 €0.94 €1.36
    Latvia €1.69 €1.67 €0.72 €1.36
    Hungary €1.57 €1.63 €0.87 €1.35
    Estonia €1.72 €1.60 €0.68 €1.33
    Croatia €1.55 €1.64 €0.75 €1.31
    Slovakia €1.63 €1.59 €0.71 €1.31
    Slovenia €1.49 €1.52 €0.85 €1.29
    Luxembourg €1.57 €1.55 €0.74 €1.29
    Malta €1.34 €1.21 €1.28
    Czech Republic €1.52 €1.53 €0.68 €1.24
    Poland €1.50 €1.55 €0.69 €1.24
    Lithuania €1.50 €1.60 €0.62 €1.24
    Romania €1.56 €1.50 €0.69 €1.21
    Bosnia and Herzegovina €1.38 €1.36 €0.63 €1.12
    Bulgaria €1.33 €1.37 €0.62 €1.11
    Ukraine €1.31 €1.32 €0.67 €1.10
    Moldova €1.21 €1.19 €0.62 €1.00
    Turkey €1.20 €1.19 €0.60 €1.00
    Belarus €0.86 €0.65 €0.30 €0.50
    Russia €0.55 €0.56 €0.50

    Avg Annual Vehicle Tax

    Country Tax
    Belguim 3,187
    Austria 2,678
    Finland 2,523
    Republic of Ireland 2,438
    Denmark 2,251
    Netherlands 2,158
    Germany 1,963
    France 1,911
    Italy 1,727
    Sweden 1,561
    Portugal 1,528
    Greece 1,264
    Spain 1,068

    Avg Car Prices

    Country 2020
    Switzerland 46,979
    Norway 44,197
    Denmark 42,681
    Luxembourg 39,380
    Sweden 38,719
    Turkey 38,642
    Germany 37,504
    Finland 37,111
    Netherlands 36,033
    United Kingdom 35,643
    Austria 34,805
    Belgium 33,444
    Portugal 32,483
    Republic of Ireland 30,495
    Spain 29,485
    France 29,331
    Italy 27,548
    Greece 25,450

    Avg Sales Tax

    Country Automobile Tariffs Duty Rate Automobile Tariffs Sales Tax
    India 125.00% 0.00%
    China 25.00% 17.00%
    United States 2.50% 0.00%
    Indonesia 40.00% 10.00%
    Pakistan 60.00% 17.00%
    Nigeria 20.00% 5.00%
    Brazil 35.00% 0.00%
    Bangladesh 25.00% 15.00%
    Mexico 20.00% 16.00%
    Japan 0.00% 8.00%
    Philippines 30.00% 12.00%
    Egypt 40.00% 15.00%
    Vietnam 70.00% 10.00%
    Turkey 10.00% 1.00%
    Germany 10.00% 19.00%
    Thailand 80.00% 7.00%
    United Kingdom 10.00% 20.00%
    France 10.00% 20.00%
    South Africa 25.00% 14.00%
    Italy 10.00% 22.00%
    Colombia 35.00% 16.00%
    South Korea 10.00% 10.00%
    Spain 10.00% 21.00%
    Argentina 35.00% 21.00%
    Poland 10.00% 23.00%
    Canada 6.10%
    Morocco 17.50% 20.00%
    Saudi Arabia 5.00% 0.00%
    Peru 6.00% 16.00%
    Malaysia 30.00% 10.00%
    Venezuela 40.00% 12.00%
    Australia 5.00% 10.00%
    Taiwan 17.50% 5.00%
    Sri Lanka 30.00% 12.00%
    Chile 6.00% 19.00%
    Romania 10.00% 24.00%
    Ecuador 40.00% 12.00%
    Guatemala 0.00% 12.00%
    Netherlands 10.00% 21.00%
    Belgium 10.00% 21.00%
    Dominican Republic 20.00% 18.00%
    Jordan 0.00% 16.00%
    Sweden 10.00% 25.00%
    Czech Republic 10.00% 21.00%
    Greece 10.00% 23.00%
    Portugal 10.00% 23.00%
    Hungary 10.00% 27.00%
    United Arab Emirates 5.00% 0.00%
    Israel 7.00% 18.00%
    Austria 10.00% 20.00%
    Switzerland 8.00%
    Hong Kong 0.00% 0.00%
    Bulgaria 10.00% 20.00%
    Singapore 0.00% 7.00%
    Denmark 10.00% 25.00%
    Slovakia 10.00% 20.00%
    Finland 10.00% 24.00%
    Norway 0.00% 25.00%

     

    Country Automobile Tariffs Duty Rate Automobile Tariffs Sales Tax
    New Zealand 10.00% 15.00%
    Costa Rica 0.00% 13.00%
    Ireland 10.00% 23.00%
    Oman 5.00% 0.00%
    Panama 0.00% 7.00%
    Kuwait 5.00% 0.00%
    Croatia 10.00% 25.00%
    Puerto Rico 2.50% 7.25%
    Qatar 5.00% 0.00%
    Botswana 25.00% 12.00%
    Lithuania 10.00% 21.00%
    Namibia 25.00% 15.00%
    Lesotho 25.00% 14.00%
    Slovenia 10.00% 22.00%
    Latvia 10.00% 21.00%
    Bahrain 5.00% 0.00%
    Estonia 10.00% 20.00%
    Cyprus 10.00% 19.00%
    Reunion 10.00% 8.50%
    Macau 0.00% 0.00%
    Luxembourg 10.00% 15.00%
    Malta 10.00% 18.00%
    Guadeloupe 10.00% 8.50%
    Martinique 10.00% 8.50%
    French Guiana 10.00% 0.00%
    Jersey 10.00% 5.00%
    Isle of Man 10.00% 20.00%
    Andorra 10.00% 4.50%
    Guernsey 10.00% 0.00%
    Liechtenstein 8.00%
    Monaco 10.00% 20.00%
    San Marino 10.00% 0.00%

    Monthly Average Wage

    State Net in Local Currency Gross in Local Currency Exchange Rate to € Date (Quarter) Gross (€) Net (€) Net (PPP)
    Albania ALL 58,410 ALL 71,486 0.0099 2023-Q3 €707.00 €578.00 €1,239.00
    Armenia 196,995 269,994 0.0024 2023-Q3 €648.00 €473.00 €1,195.00
    Austria €3,269 €4,779 1 2022 €4,779.00 €3,269.00 €4,484.00
    Azerbaijan ₼ 659 ₼ 766 0.55 2022-Q1 €423.00 €364.00 €1,189.00
    Belarus BYN 1,698 BYN 1,971 0.277 2023-10 €546.00 €470.00 €1,722.00
    Belgium €2,463 €3,832 1 2022-Q3 €3,832.00 €2,463.00 €3,450.00
    Bosnia and Herzegovina BAM 1,328 BAM 2,052 0.5113 2024-1 €1,050.00 €679.00 €2,070.00
    Bulgaria BGN 1,686 BGN 2,173 0.5113 2023-12 €1,110.00 €861.00 €2,212.00
    Croatia €1,239 €1,695 1 2024-01 €1,695.00 €1,239.00 €2,711.00
    Cyprus €1,904 €2,217 1 2023-Q1 €2,217.00 €1,904.00 €3,358.00
    Czech Republic CZK 36,330 CZK 46,013 0.0395 2023-Q4 €1,816.00 €1,434.00 €2,663.00
    Denmark DKK 30,971 DKK 45,481 0.134 2021 €6,093.00 €4,149.00 €4,894.00
    Estonia €1,474 €1,868 1 2023-09 €1,868.00 €1,474.00 €2,339.00
    Finland €2,366 €3,974 1 2023-Q3 €3,974.00 €2,366.00 €2,827.00
    France €2,464 €3,530 1 2022-Q2 €3,530.00 €2,464.00 €3,556.00
    Georgia ₾1,444 ₾1,805 0.34 2023-Q2 €613.00 €490.00 €1,225.00
    Germany €2,781 (without addons) €4,323 (without addons) 1 2023-04 €4,323.00 €2,781.00 €4,667.00
    Greece €1,098 €1,381 1 2023-Q2 €1,381.00 €1,098.00 €2,230.00
    Hungary HUF 427,700 HUF 621,200 0.002596 2023-11 €1,596.00 €1,099.00 €2,505.00
    Iceland ISK 490,000 ISK 721,000 0.00689 2018 €4,969.00 €3,377.00 €3,296.00
    Italy €1,740 €2,479 1 2022-Q1 €2,479.00 €1,740.00 €2,802.00
    Kazakhstan ₸ 294,308 ₸ 365,502 0.00198 2023-Q2 €731.00 €589.00 €1,416.00
    Kosovo €446 €521 1 2022 €521.00 €446.00 €1,242.00
    Latvia €1,167 €1,610 1 2023-Q4 €1,610.00 €1,167.00 €2,084.00
    Lithuania €1,304 €2,110 1 2023-Q4 €2,110.00 €1,304.00 €2,570.00
    Luxembourg €3,699 €5,411 1 2020 €5,411.00 €3,699.00 €4,321.00
    Malta €1,448 €1,829 1 2023-Q3 €1,829.00 €1,448.00 €2,459.00
    Moldova MDL 10,731.6 MDL 13,401.1 0.05186 2023-Q4 €695.00 €557.00 €1,291.00
    Montenegro €819 €1,024 1 2024-01 €1,024.00 €819.00 €2,023.00
    Netherlands €3,145 €4,191 1 2022-Q1 €4,191.00 €3,145.00 €4,199.00
    North Macedonia MKD 39,998 MKD 60,036 0.0162 2023-12 €973.00 €648.00 €1,970.00
    Norway NOK 38,920 NOK 53,150 0.0884 2022-Q3 €4,700.00 €3,442.00 €4,382.00
    Poland PLN 5,625 PLN 7,767 0.23 2023-Q4 €1,783.00 €1,291.00 €2,753.00
    Portugal €1,227 €1,670 1 2023-Q4 €1,670.00 €1,227.00 €2,220.00
    Republic of Ireland €3,367 €4,548 1 2023-Q4 €4,548.00 €3,367.00 €4,029.00
    Romania RON 4,859 RON 7,976 0.20109 2024-01 €1,604.00 €977.00 €2,232.00
    Russia ₽ 64,127 ₽ 73,709 0.0101 2023 €744.00 €647.00 €2,036.00
    San Marino €3,237 €3,237 1 2023-09 €3,237.00 €3,237.00 €5,066.00
    Serbia RSD 95,093 RSD 130,405 0.00853 2023-12 €1,113.00 €811.00 €2,135.00
    Slovakia €1,092 €1,430 1 2023 €1,430.00 €1,092.00 €1,884.00
    Slovenia €1,594 €2,427 1 2023-11 €2,427.00 €1,594.00 €2,757.00
    Spain €1,910 €2,471 1 2023-Q2 €2,471.00 €1,910.00 €3,148.00
    Sweden SEK 35,724 SEK 47,149 0.0899 2023-09 €4,213.00 €2,885.00 €3,666.00
    Switzerland CHF 5,247 CHF 6,665 1.06 2020 €7,073.00 €5,569.00 €5,232.00
    Turkey ₺ 20,910 ₺ 26,132 0.029 2023-Q4 €784.00 €627.00 €2,150.00
    Ukraine ₴ 17,937 ₴ 16,306 0.025 2023-Q3 €391.00 €448.00 €1,297.00
    United Kingdom £2,145 £2,691 1.166 2023-09 €3,138.00 €2,502.00 €3,127.00

    Car Costs

    Country Depreciation Insurance and breakdown cover Car finance Inspection Car tax Fuel Maintenance Repairs and improvements Parking Tolls Traffic fines Washing and cleaning Running costs per distance Total costs per distance Kinetic speed Consumer speed
    Denmark 1820 680 116 125 359 2917 516 283 124 63 30 82 0.20/km 0.37/km 55km/h 29km/h
    Republic of Ireland 1275 1000 81 81 340 2132 514 211 172 190 9 87 0.05/km 0.10/km 195km/h 109km/h
    Germany 1685 736 36 241 220 1749 337 212 141 43 22 98 0.12/km 0.27/km 63km/h 39km/h
    Italy 1695 716 83 75 234 1661 364 148 111 228 34 72 0.13/km 0.29/km 55km/h 33km/h
    United Kingdom 1343 800 78 131 192 1803 418 176 145 29 11 73 0.23/mi 0.48/mi 41mi/h 41mi/h
    Spain 1550 537 85 50 128 1569 344 166 219 104 32 58 0.12/km 0.24/km 60km/h 33km/h
    Czech Republic 1271 437 54 82 38 1967 485 147 85 80 11 70 0.08/km 0.15/km 79km/h 39km/h
    Netherlands 1015 663 17 204 535 1420 396 102 152 48 41 59 0.17/km 0.38/km 46km/h 24km/h
    France 1456 689 65 79 79 1225 313 152 165 158 29 54 0.15/km 0.35/km 47km/h 24km/h
    Greece 945 368 41 57 252 1576 302 146 81 151 11 75 0.17/km 0.31/km 41km/h 21km/h
    Portugal 1268 356 87 35 116 1257 261 135 107 221 14 45 0.14/km 0.28/km 50km/h 30km/h
    Poland 876 411 45 86 29 1539 231 193 82 71 15 75 0.12/km 0.22/km 38km/h 35km/h
    Romania 813 304 33 67 75 1414 328 169 82 72 22 105 0.11/km 0.19/km 46km/h 44km/h
    Russia 603 198 54 53 54 980 215 128 64 25 21 72 0.06/km 0.11/km 37km/h 30km/h
    Turkey 278 91 59 35 41 357 41 22 31 24 7 12 0.03/km 0.07/km 41km/h 25km/h