Luxembourg Tops Europe for Affordable Car Ownership
LuxembourgPosted 3 days ago by Team · 1 min readA recent study has found that Luxembourg is now the cheapest country in Europe for car ownership when comparing total first-year costs to average salary. The research analysed expenses such as fuel, insurance, maintenance, taxes and the depreciation of vehicles.
In Luxembourg, the total cost of owning a car in the first year amounts to around 18.66% of the average annual income — lower than in Switzerland, Norway, Iceland, Austria and Denmark. This strong position reflects a balance between income levels and ownership costs.
Switzerland and Norway remain relatively affordable due to high average salaries, even though vehicle prices and running costs are high. Iceland and Austria also make the top five, with affordability influenced by income and pricing structures.
The study shows that affordable car ownership depends on both the total costs and how much of a person’s income those costs take up, rather than just vehicle prices. Countries with strong income levels tend to perform better in overall affordability.
This ranking matters as more than half of Europeans now own vehicles, making cost comparisons important for households considering mobility, taxes and lifestyle choices.
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