LeasePlan Sweden are now sharing their key insights from Car Cost Index 2021, a European study that compares how the total cost of cars with different propellants differ between European countries. The index shows that small to medium sized electric cars now has a lower total cost than petrol- and diesel cars, in the majority of countries. In Sweden the total cost to own an electric car is the lowest in Europe, after Germany and Greece.
LeasePlans annual car-cost-index is published for the sixth time and contains an extensive analysis of the total cost (TCO) of owning a car, which includes fuel/energy, depreciation, taxes, insurance and maintenance, in a total of 22 European countries. Sweden stands out as one of the countries where it is most cost-effective to choose an electric car. In Sweden, the total cost of owning an electric car, is the lowest in Europe, after Germany and Greece.
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It is joyful that Sweden ends up at the top of the list. At the same time, we shall remember that there is a lot left to do in Sweden to further promote the transition of both companies and individuals to electric cars. For example, our latest survey among Swedish company-car drivers shows that only 2 percent thinks that there are sufficient charging stations in Sweden and only 12 percent thinks that the government does enough to promote the transition, says Malin Malm, Commercial Director at LeasePlan Sverige.
Malin Malm continues,
Key insights from the study
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The average cost to own a car differs a lot between the countries in Europe. From 743 € per month In Greece to 1 138 € in Switzerland. In Sweden, the average cost is 889 €, just below 8 900 SEK.
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In Poland it is cheapest to drive a petrol car and in Greece it is cheapest to drive an electric car.
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Electric cars in what is called the premium mid-size-segment (D2) such as Polestar 2 and Mercedes EQA has a lower total cost than petrol- or diesel cars with a combustion engine in 17 of 22 countries surveyed, including Sweden. (See list below)
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Smaller electric cars in what is called the compact-segment (C1) such as Volkswagen ID.3 and Kia Niro, has a lower total cost than petrol- or diesel cars with a combustion engine in 14 of 22 countries surveyed, including Sweden.
Total cost for owning a car in the D2-segment
**About the study **The 22 countries that are included in the study are: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, The Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Switzerland and The United Kingdom. The total cost is calculated as an average during the first four years of ownership and assumes an average of 30 000 kilometres driver per year.
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FAQs
While average transaction prices for new cars declined 1.4% year-over-year as of October, they have increased to an average price of $47,936—roughly a 60% increase over the last decade.
How much have car prices increased in the last 10 years? ›
While average transaction prices for new cars declined 1.4% year-over-year as of October, they have increased to an average price of $47,936—roughly a 60% increase over the last decade.
How much should I spend on a car if I make $100000? ›
Starting with the 1/10th guideline, created and pushed by Financial Samurai, this guideline states: buy a car in cash that costs less than 1/10th your gross annual pay. If you make $50,000 you should buy a car in cash worth $5000. If you make $100,000, the car you buy should be worth no more than $10,000.
Why are cars so expensive now? ›
The pandemic scrambled supply and demand in the used car market. The supply of used cars plummeted as fewer people bought new cars and traded in their old ones. At the same time, demand soared from consumers flush with cash from government stimulus checks.
What is the average price of a car over time? ›
The average rate for most sizes shows an upward trend since 2018, but the subcompact's price decreased slightly between 2022 and 2023. Overall, average rates have increased by around 21%, from $38,783 in 2018 to $47,061 in 2023. The jumps from 2019 to 2020 and 2020 to 2021 were the highest, exceeding 6% each year.
How much have car prices increased in last 5 years? ›
However, the last five years have been a whirlwind of unprecedented change. On average, new car prices have increased by about 32% since 2018. But some automakers seem to have thrown caution to the wind, pushing their prices far higher.
How much have cars gone up with inflation? ›
The average cost of new cars is now well over $48,000—up almost $6,000 from two years ago and about $10,000 from September 2020, according to Kelley Blue Book. That figure largely tracks with inflation, but there are many other factors at play.
What is the 50 30 20 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
What car can I afford with a 120k salary? ›
You can comfortably afford a car that is roughly half of your salary, maybe even a little more if you have little other debt. So at 120k you can afford a car up to 60–70k. Honestly depends on your other expenses. If you live way below your means on everything else, you may even be able to afford a 100k car.
What is the 35 percent rule for cars? ›
The 35% rule states that the most that you should spend. on the price of a car. is not to exceed 35% of your gross income. That means if you make $40,000 a year, the cars price should not exceed $14,000. If you make $80,000, the cars price should be below $28,000.
After a year of supply shortages and climbing borrowing costs, 2024 is shaping up to be a better time to buy a car. The average transaction price for a new car in the U.S. in February was $47,244, down 2.2% from February 2023. That's also down 5.4% from the market peak in December 2022, according to Kelley Blue Book.
Will cars ever be affordable again? ›
Though inventories of new autos are still well below the roughly 4 million level that prevailed before the pandemic, analysts and dealers say the rising availability suggests that 2024 will be the most affordable year of the past five in which to buy a new car or truck.
Will cars be cheaper in 2025? ›
Car prices could fall by about 7% by 2025, providing some much-needed relief for car shoppers after years of jacked-up prices, according to consultancy AlixPartners. But the drop won't be the result of individual vehicles getting cheaper.
What time of year are cars cheapest? ›
The best time to buy a car is usually around the end of the year since salespeople will be trying to meet their quotas and may offer steep discounts. However, you should also consider holidays — like Labor Day or Memorial Day — and the beginning of the week.
What is the average US car payment? ›
Car payment statistics
The average monthly car payment for new cars is $726. The average monthly car payment for used cars is $533. 39.20 percent of vehicles financed in the third quarter of 2023 were new vehicles. 60.80 percent of vehicles financed in the third quarter of 2023 were used vehicles.
How often does the average person buy a car? ›
The Zebra study also found that the average length of ownership is five years or less for nearly two-thirds of Americans. As S&P Global Mobility noted, economic headwinds held back new vehicle sales, but projections for sales to improve could limit this average vehicle age growth.
How much have car prices increased since COVID? ›
From December 2020 to December 2021, car prices soared, spiking far higher than the already-high level of CPI inflation. New car prices increased by 11.7% and used cars increased by 37.2%.
How much has car price increased since pandemic? ›
Still, they're up more than 21% since the start of 2020, when the pandemic erupted and triggered severe parts shortages. For used vehicles, the average price dropped 3.3% last month, though at just over $27,000 it remains 32% above the pre-pandemic average.
How much have car prices increased in the last year? ›
Used Car Price Increases by State
| Used Car Price Increases by State: July 2022- iSeeCars |
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| Rank | State | Year-Over-Year % Price Change |
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| 41 | Pennsylvania | 12.6% |
| 42 | Florida | 13.0% |
| 43 | California | 13.1% |
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