Top 20 Most Expensive and Cheapest Countries to Own a Car
Most Expensive and Cheapest Countries to Own a Car

Whether that’s going to work each day or on a road trip, cars really are a part of essential daily life for many, but they also come at a cost: getting insurance, fueling up and paying for repairs all bump up the cost of ownership.

The Scrapcarcomparison (UK) took the average car costs (for the same car models) and added them to the average cost of car insurance, repairs and current fuel prices to evaluate just how expensive it is to own and run a car around the world.

These costs were weighted against average yearly earnings in each country, to give a fair gauge of affordability – enabling us to calculate the percentage of a country’s average yearly salary required to own a car!

Where is the Cheapest Country to Own a Car - Top 10

As per a recent study (The Scrapcarcomparison), Australia ranks as the cheapest country to own a car, requiring only 49.48% of the annual salary to own and run a car. The costs to own and run a car in Australia are lower here than any other country.

The study also states that the USA ranks second, requiring 54.87% of the annual income while Denmark completes the top 3 with 60.34%.

Further down the list is Canada and Sweden requiring 64.40% and 75.84% of the annual salary, respectively. Countries like Germany, Netherlands, France, UK and Finland are positioned much lower in the top 10 list.

The likes of the car-centric United States, as well as multiple countries in Europe also ranked within the top 10 for automotive value, too. With a higher cost of living than many other countries in our research, the UK fell outside of the top five, however still managed to prove its value, sneaking into the top 10 in ninth place!

According to the study of the price comparison site Confused, The UK is one of the most expensive countries to buy a car, placed 10th in three of the four categories. With an average cost of £24,430, the UK was ranked the tenth most expensive place to buy a Volkswagen Golf out of 29 countries.

The US was named the cheapest place to buy a hatchback, with an average price of £17,082, while SUV prices were deemed to be the lowest in Canada, coming in at £16,796, according to Confused.

Macao was listed as the cheapest place to buy an electric car, with an average price of £29,739. Sports car prices, based on the Ford Mustang, were lowest in Canada, with a price of £18,586.

List of Top 10 Cheapest Countries to Own a Car

Country % of average yearly salary required to buy and run a car
1. Australia 49.48%
2. United States of America 54.87%
3. Denmark 60.34%
4. Canada 64.40%
5. Sweden 75.84%
6. Germany 78.44%
7. Netherlands 84.65%
8. France 87.00%
9. United Kingdom 89.36%
10. Finland 91.58%

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Which country is the most expensive to buy a car - Top 10

Moving to the opposite end of the scale, Turkey ranks on top as the most expensive country to own and run a car, requiring a staggering 652.29% of your annual salary. Argentina came second on this list with 515.77%, Colombia in third with 508.93%, while Uruguay and Brazil completed the top 5 with 443.68% and 441.89%, respectively.

On the other end of the scale, salary of course plays a huge part in how affordable anything is going to be, so it was no surprise to see that countries where average salaries are lower, being much more expensive to own a car, even when new car prices are comparatively cheap to the likes of the UK and U

Turkey, ranked as the most expensive place to own a car within our research and requires more than 6 times the average Turkish annual salary to buy and run a car, while it is also particularly hard to buy new in South America

The top 10 most expensive countries in which to own a car also included Ukraine, Guatemala, Russia, Mexico and Costa Rica.

In terms of the methodology used to ascertain the figures, the study is said to have used the same car models (Toyota Corolla & Volkswagen Golf) across the board for a more even comparison. The study is also said to have factored in the average cost of vehicle insurance, fuel prices and repairs to determine the ownership costs.

The cost was then compared to the country's average yearly salary to determine the exact percentage figure. Having said that, the study took into account only 40 countries whose average cost data was readily available.

According to Confused, Singapore was rated the world’s most expensive country to buy a hatchback, with an eye-watering average cost of £99,305, with the gulf in price because of taxes and fees implemented to reduce the number of cars on the road. One extra cost, called the Additional Registration Fee (ARF), can raise base prices by as much as 180%.

Singapore is the most expensive city to hire a car. In fact, the daily rate for car hire in Singapore is over eight times more expensive than that in Madrid, at US$115. Although, given that Singapore is a small island, you can probably get around without hiring a car.

List of Top 10 Most Expensive Countries to Own a Car

Country % of average yearly salary required to buy and run a car
1. Australia 49.48%
2. United States of America 54.87%
3. Denmark 60.34%
4. Canada 64.40%
5. Sweden 75.84%
6. Germany 78.44%
7. Netherlands 84.65%
8. France 87.00%
9. United Kingdom 89.36%
10. Finland 91.58%

Cambodia commands the highest prices for sports cars out of 48 countries, with a cost of £106,785, also impacted by vehicle and import taxes.

Methodology to Rank

The Scrapcarcomparison (UK) looked at the 40 countries where average cost data is readily available for earnings, car price, insurance, repair and fuel were analysed, while countries with no available car cost data for comparison were removed from the study.

Car prices were averaged from two popular models, a VW Golf and a Toyota Corolla, and added to average fuel, insurance and repair costs before being weighed against average yearly salaries, to calculate the final rankings. The results reveal the percentage of each countries’ average yearly salary (per person) required to purchase and run a new car.

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