Which Country Is the Cheapest Place to Own a Car?
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In today’s world, unless you live in a city with highly networked and easily accessible public transportation, it is pretty common to own a vehicle.
We depend on cars to simplify our daily necessities like running errands and going to work, and sometimes use them as an expression of personal style.
Unfortunately, with the luxury of car ownership come substantial initial purchase and recurring running costs including maintenance, car insurance, and fuel, especially in recent times as car prices have skyrocketed.
Have you ever wondered whether the costs of owning your car would be more affordable in another country?
In some countries the costs are truly prohibitive. In others, increased affordability gives many more the opportunity to purchase.
So, which country is the cheapest place to own a car, which is the most expensive, and where does the U.S. stand? Fortunately for Americans, car ownership is more affordable than in most other countries.
The U.S. is the second most affordable country when it comes to the costs of car ownership.
Where does the United States rank on affordability?
Carscoops collated data on vehicle and ownership costs for a brand new Toyota Corolla and a VW Golf in 40 countries around the world. While this provides a rough estimate of affordability on a country-to-country basis, keep in mind that costs vary based on make and model, and this study doesn’t take used cars into account. These are usually more affordable, although this hasn’t been the case recently.
Although costs range greatly based on type, Kelley Blue Book reports that in June 2021, the average price of a new vehicle in the U.S. was just over $42,000, up roughly $2,500 from the year before.
This includes light vehicles, meaning any car, SUV, van, or truck weighing no more than 1 ton, as denoted by Law Insider.
According to Carscoops, the total costs required for the average American to own a single vehicle take nearly 55% of their yearly income.
Although this may seem like a lot, the U.S. actually ranks as the second most affordable country for car ownership out of the 40 surveyed.
So which country takes the number one spot for cheapest car ownership costs?
If you want to maximize savings, you’ll have to head across the seas to the Land Down Under.
Australia holds the title of most affordable place to own a car, where just under 50% of the average annual income is spent on ownership costs.
Denmark comes in third at just over 60% and Canada, fourth at slightly more than 64%.
Sweden, Germany, the Netherlands, France, and the United Kingdom are next, with Finland rounding out the top 10 most affordable. There, car ownership costs consume 91.58% of the average yearly salary.
If you think this is exorbitant, just wait until you see how much car ownership costs in the most expensive country!
Where is the most expensive place to own a car?
At more than 13 times Australia’s numbers, Turkey is the absolute most expensive place to own a car.
On average, people there need an incredible 652.29% of their annual income to own and operate their vehicles.
For this reason, only about 21 million cars are driven in this country, despite having 82 million residents.
Since Turkey manufactures more than 1,200,000 vehicles every year from major automakers like Toyota, Honda, Fiat, and Renault, you might expect more cars on their roads.
According to Fleet Europe, there are massive taxes levied on cars in Turkey. In fact, the post-tax vehicle price can actually end up being more than 50% more than it was pre-tax.
One easy way to save on car ownership costs
No matter where you live, owning a vehicle should hopefully be an exciting and carefully-considered choice, since it is a considerable investment to make.
Checking up on your car insurance policy is one super easy way to potentially cut your car ownership costs.
You can ensure that you aren’t paying more than you should be for your car insurance with Jerry. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.