For most of us, owning a car can mean freedom. It means getting to go, see and do what you want, whenever you want. 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… and we’re not just talking about purchase price either.
Getting insurance, fueling up and paying for repairs all bump up the cost of ownership, but as cost comparisons are so high on the agenda for us here at Scrap Car Comparison, we wanted to find out how these costs differ around the world.
The Most Affordable Countries to Own a Car
To find out where the cheapest and most expensive countries to own a car are, we 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!
Once all that math was out of the way, we found that it’s Australia that stands tall as offering the best value for money for drivers. Requiring just under half of the average Australian yearly salary (49%) the costs to own and run a car are lower here than any other country.
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!
Of course, within the United Kingdom alone, prices do vary, with costs of purchase, fuel and repairs coming at a higher cost in the likes of London and Brighton, but like most things, cheaper in Northern cities such as Manchester and Sheffield!
Country
% of average yearly salary required to buy and run a car
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.
Country
% of average yearly salary required to buy and run a car
1. Turkey
652.29%
2. Argentina
515.77%
3. Colombia
508.93%
4. Uruguay
443.68%
5. Brazil
441.89%
6. Ukraine
413.78%
7. Guatemala
355.94%
8. Russia
290.04%
9. Mexico
285.20%
10. Costa Rica
269.83%
If you’re reading this and feeling your current car is close to needing to be swapped for a newer model, with repair costs spiralling – maybe it’s time to consider scrapping your car? Click here to find out more!
Methodology We 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. All data correct as of August 2021. Sources used with the research include:
Of the seven countries with the lowest rate of car ownership in the world, six are African: Burundi, The Central African Republic, Ethiopia, Rwanda and Tanzania all have a rate of 1 car per 1,000 population, according to the current figures (2005 or later).
Here in Singapore, however, it is not just premium vehicles that cost a relative fortune. The island nation of 6 million people is the world's most expensive place to own a car because of a quota system that limits the number of vehicles on the road.
Due to its large manufacturing capacity and access to cheap labor, Chinese auto parts tend to be cheapestcheapest. Undoubtedly it is China. There are many auto parts manufacturers in China, and labor costs are cheap.
For many years, the Tata Nano was the world's cheapest car ever. Back in the day, the Indian manufactured motor experienced high demand for the 625cc, twin-cylinder engine, £1700 priced tagged Nano. The back-to-basics bargain car entered production in 2008 and ceased in 2017.
In certain regions, used cars are available at significantly lower prices compared to similar models in the local market, making them an appealing choice for those seeking to make the most of their budget or prioritize value for money.
Germany. Germany is famous for producing iconic cars from brands like Audi, Volkswagen, BMW, and Mercedes-Benz. It's particularly well-known for making vehicles that are reliable, packed with innovative features, and with popular designs to match.
The largest car collection in the world belongs to Hassanal Bolkiah, the Sultan of Brunei Darussalam since 1967. At 76, the sultan is the longest-reigning monarch after the late Queen Elizabeth II and has spent a chunk of his estimated $30 billion fortune amassing a unique selection of luxury cars.
When looking to buy an exotic car at a more affordable price, consider countries like Mexico, the UAE, Germany, and Japan. Therefore, make sure to research the market, compare prices, and inspect the vehicle thoroughly. Also, consider the additional costs involved in shipping the car back home.
1. United States of America. In the United States, on average people pay around $1,706.86 (USD) per year to insure their car – a figure that is significantly high for a total average figure.
Car ownership costs vary significantly by state, with California, Nevada, Florida, New York, and Washington being the most expensive due to high costs of insurance, fuel, sales tax, and vehicle depreciation.
The underlying reason is the large economy of scale (Japan is the third largest economy in the world) which allows the manufacturers to sell their cars at a much lower price in the local market. Moreover, the Japanese are used to buy newer models whenever they arrive in the market.
According to a report, on average, there's a 20% difference between the prices of vehicles in Canada and United States, with the latter being on the lower side.
The high prices are caused by the unfavourable tax system, the market forbearance, the low demand for some vehicles, the tailoring of some cars to meet the conditions in Australia, and the fact that Australia buys fewer cars than other nations such as the United States of America.
The ideal place to search for and buy an expensive elite car is the UAE. The center of sale of the most prestigious brands of cars with mileage is located in Dubai. With all its advantages, cars from the Emirates are the most difficult to buy, as well as to organize the transportation of the car to your country.
Florida offers the lowest upfront costs for buying used cars across the country. Florida's initial rates are generally relatively cheaper than the national average in the United States, ultimately saving you money on your purchase.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
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