UK Ranks Low on Car Affordability Index Compared to EU

A recent study highlights the financial strain of car ownership in the UK, positioning it among the least affordable countries in Europe.

Conducted by Vignetteswitzerland.com, the research delves into the economic challenges faced by drivers across Europe, evaluating fuel prices, vehicle taxes, insurance costs, and average salaries to gauge car ownership affordability.

The UK, with an index score of just 3.1 out of 10, is ranked as the seventh least-affordable European country for owning a car. This low score reflects the significant financial barriers faced by UK drivers when purchasing and maintaining a vehicle.

The study reveals a stark contrast between the UK’s average monthly salary of £2,140 and the average car price of £30,491. This disparity makes car ownership particularly challenging for many, especially young drivers seeking their first vehicle. The high cost of car maintenance, including fuel prices, further exacerbates the issue. Currently, fuel in the UK costs £1.26 per litre, compared to the European average of £1.18.

In contrast, Switzerland emerges as the most affordable country for car ownership in Europe, with a perfect index score of 10. Despite its high standard of living, Switzerland offers relatively low expenses for fuel, taxes, and insurance, alongside an average monthly net salary of €5,569. This combination makes car ownership more accessible to Swiss residents.

Following Switzerland is the Republic of Ireland, which ranks second with a score of 7.7 out of 10. The average monthly salary in Ireland stands at €3,367, while the typical car price is €30,495. Ireland’s competitive car market, combined with reasonable vehicle taxes, makes it a viable option for car buyers.

Luxembourg holds the third spot with an index score of 6.8 out of 10. The Grand Duchy’s strong economy contributes to relatively low vehicle-related expenses, despite an average car price of €39,380. With an average monthly salary of €3,699 and a fuel price of €1.29 per litre, Luxembourg offers a favourable environment for car owners.

France, with an index score of 5.4, ranks fourth. The country offers balanced expenses for fuel, vehicle taxes, and insurance. French drivers benefit from an average monthly salary of €2,464 and an average car price of €29,331, making car ownership reasonably affordable compared to many European counterparts.

Spain completes the top five most affordable countries for car ownership, scoring 5.2 out of 10. Spaniards enjoy an average monthly net salary of €1,910, with a typical car price of €29,485 and an average fuel price of €1.36 per litre. These factors contribute to Spain’s attractive car market for budget-conscious buyers.

Conversely, Norway, Finland, and Turkey feature at the lower end of the affordability spectrum. Norway, with an index score of 0.76, faces high car ownership costs, despite an average net salary of €3,442. The average car price in Norway stands at €44,197, the second highest in Europe.

Finland, despite its robust economy, has a second-lowest affordability rating of 0.57. Higher-than-average expenses for fuel, vehicle taxes, and insurance contribute to the country’s challenging car ownership landscape.

Turkey, at the bottom of the list, is the least affordable European country for car ownership, with an index score of 0. The stark contrast between Turkey’s average monthly salary of €627 and an average car price of €38,642 highlights the significant financial strain faced by Turkish drivers.

M.E. Wijnmalen, CEO of Vignetteswitzerland.com, commented on the findings, stating: “The study underscores the balance between quality of life and financial considerations when it comes to owning a car. It is fascinating to observe how different countries manage affordability amidst various economic factors. Understanding these nuances is crucial for both individuals and policymakers.”

Wijnmalen further noted, “Switzerland’s top position in affordability is not solely due to low expenses but also reflects its balanced economic policies. Similarly, Luxembourg’s strong economy provides affordability without sacrificing quality. Countries like France and Spain offer a mix of reasonable costs and favourable conditions, contributing to a diverse landscape of car ownership affordability in Europe.”

Top ten most affordable European countries for car ownership 

This comprehensive study not only highlights the financial challenges of car ownership but also offers insights into the varying economic conditions across Europe, emphasising the need for informed decisions in today’s dynamic economic climate.

For more information, visit vignetteswitzerland.com.