In what country are cars the most expensive?

Norway Tops the List of Most Expensive Countries for Car Ownership

Car ownership costs vary significantly across different countries, influenced by factors such as vehicle prices, taxes, fuel costs, and insurance premiums. Based on the latest data, Norway stands out as the most expensive country for owning and operating a car.

According to the Car Cost Index, developed by the Swiss bank UBS, Norway has an index score of 9.20, indicating that car ownership expenses are nearly double the global average. This high ranking is primarily driven by Norway’s steep taxes on new cars, which can reach up to 125% of the vehicle’s price. Additionally, fuel costs are relatively high in Norway due to government taxes.

Following Norway, Germany ranks second on the list with an index score of 9.07. While Germany has lower car purchase taxes compared to Norway, it compensates for this with high road tolls and insurance premiums. Denmark, with an index score of 7.87, rounds out the top five most expensive countries for car ownership.

In contrast to Norway, the United States ranks fourth on the list with a relatively lower index score of 8.00. While car prices in the US are generally higher than in other developed countries, the cost of ownership is offset by lower taxes and fuel costs.

The high cost of car ownership in Norway is partly intended to discourage vehicle usage and promote sustainable transportation. The Norwegian government has implemented various initiatives to reduce car dependency, such as investing in public transportation and promoting cycling and walking.