Car and vehicle prices across Europe: How much is it in your country?

Comparing car prices crossed Europe is simply a analyzable challenge. Focusing connected 1 aliases a fewer circumstantial models mightiness look for illustration a reasonable approach, but it tin beryllium misleading.

Such comparisons neglect to seizure nan broader marketplace business wrong each country, arsenic car brands travel different pricing and trading strategies. Used car prices besides alteration wide crossed Europe, further complicating nonstop comparisons.

The value level scale for ‘personal carrier equipment’, published by Eurostat, is 1 measurement to look astatine differences betwixt countries. The information includes centrifugal cars, motorcycles, and bicycles, while excluding maintenance, repairs, spare parts, and fuel. For centrifugal cars, nan information covers some caller and utilized vehicles.

The scale uses €100 arsenic nan EU average, showing really prices disagree from that baseline crossed countries.

The astir costly country

Turkey is by acold nan astir costly state for cars and different individual vehicles among 36 European nations. Prices are 36.4% higher than nan EU average, meaning that a conveyance costing €100 successful nan EU would costs €136.40 successful Turkey. Although still astatine nan apical of nan list, prices person really eased slightly, arsenic this fig was €147.10 successful 2021.

Denmark is nan astir costly state wrong nan EU, pinch costs 19.1% higher than nan EU average.

“The nonstop taxation of cars (VAT + purchase-related taxes and fees circumstantial to cars) differs vastly wrong nan EU. Denmark is simply a high-tax outlier, which explains nan precocious value scale for Denmark,” Georg Strasser, interrogator astatine nan European Central Bank (ECB), told Euronews Business.

Across each 36 countries, Iceland (18.1%), nan Netherlands (14.3%), Ireland (10.3%), and Switzerland (10.2%) are among nan different nations wherever car and individual conveyance prices are astatine slightest 10% higher than nan EU average.

North Macedonia and Slovakia are nan cheapest

The cheapest countries for individual carrier instrumentality are North Macedonia and Slovakia. When nan EU mean is group astatine €100, nan aforesaid items costs €87.70 successful North Macedonia and €88.60 successful Slovakia. This intends car and different individual conveyance prices are 12.3% and 11.4% cheaper, respectively.

Slovenia (8.7%), Cyprus (8.6%), nan Czech Republic (8.4%), Norway (8.3%), Latvia (7.5%), arsenic good arsenic Montenegro and Poland (both 7.2%), are different comparatively cheaper countries wherever car and individual conveyance prices are astatine slightest 7% little than nan EU average.

Spain is nan cheapest among EU’s ‘Big Four’

Among nan EU’s 4 largest economies, Spain is nan cheapest state for cars and individual vehicles, pinch prices 3.8% little than nan EU average. Germany is nan only 1 supra nan EU average, but only by 0.4%. France and Italy are very adjacent to nan average, pinch prices conscionable 0.2% and 0.3% cheaper, respectively.

“Within nan EU, I fishy that taxation and pricing-to-market are still nan 2 main factors down nan cross-country value differences. Outside of nan EU, besides regulatory differences tin beryllium relevant,” Strasser said.

Pricing-to-market

Georg Strasser emphasised that differences successful user preferences betwixt countries, specified arsenic for definite brands, definite features, wide affluence, and willingness to pay, create an inducement for manufacturers to differentiate prices betwixt markets.

“This useful only if arbitrage, i.e. nan cross-border trading of cars, is limited,” he added.

His insubstantial pinch Eyal Dvir, main astatine Boston-based consulting patient Charles River Associates, provides grounds that car manufacturers value to market, treating countries arsenic abstracted trading regions moreover wrong nan EU.

“It is fundamentally nan hassle of buying a car overseas (or from an importer aliases re-importer) and accepting nan imaginable flimsy differences successful exemplary features, which sustains specified value differences moreover wrong nan EU,” he said.

This besides allows prices to beryllium tailored to differences crossed countries successful marque preference, income levels, and truthful forth.

Power types: Country policies matter

Strasser noted that nan taxation effect is much subtle for astir countries, particularly if nan taxation codification differentiates by nan car’s characteristics.

He besides pointed retired that, successful each country, definite car models thin to beryllium comparatively much expensive, while others are comparatively cheaper compared to nan EU average.

“[This] induces consumers to acquisition comparatively much of nan cheaper model,” he said.

Taking nan taxation of electrical cars arsenic an example, he referred to nan complexity of comparing prices and Eurostat index: “A state taxing accepted cars astatine a precocious rate, but astatine nan aforesaid clip exempting electrical cars from taxation mightiness connected mean look for illustration an ‘expensive’ country, arsenic nan value level scale uses nan expenditure stock averaged complete each participating countries.”

While it reflects 2022 figures, nan OECD’s information connected 'car prices earlier taxation and aft each taxes' is useful for knowing nan effect of taxation. However, nan VAT rate unsocial does not explicate why car prices alteration truthful importantly earlier and aft taxation crossed Europe. Other taxes, fees, and bonus–malus schemes are besides responsible for these differences.