By Favour Osah
Owning a car can feel like freedom, and in some countries, that freedom comes cheaper thanks to higher incomes, smarter policies, and efficient markets.
Here are 10 countries where owning a car is relatively cheap:
1. Luxembourg
Small but mighty, Luxembourg consistently ranks number one on affordability lists. It’s not that cars or fuel are the cheapest, they really aren’t, but rather that Luxembourg’s high average income makes running a car take up only a small fraction of a person’s salary.
According to FINN’s Global Cost of Car Ownership report, the average cost of purchasing and running a popular car like the Volkswagen Golf accounts for less than 5% of a typical annual income. Petrol prices are moderate, public roads are well-maintained, and insurance competition keeps rates low.
For Luxembourgers, car ownership is almost a given, not a luxury. The combination of high wages, low taxes, and excellent infrastructure keeps this European microstate at the top year after year.
2. United States
The United States comes in second, driven by its relatively cheap fuel, abundant car supply, and intensely competitive automotive market. With millions of new and used vehicles sold yearly, car prices remain stable and financing options are flexible.
Gasoline costs less than half of what it does in most European countries, and insurance can be tailored to fit different income levels. Americans also benefit from low import taxes and a culture built around the automobile, meaning cars are not just accessible, but often essential.
However, affordability varies by state. Owning a car in Texas or Florida is far cheaper than in California or New York, where insurance and taxes push costs up. Still, on average, car ownership in the U.S. remains one of the least burdensome compared to average incomes worldwide.
3. Australia
Australia has quietly become one of the world’s cheapest places to own a car, landing consistently in the top three on recent rankings. Despite a vast landmass and high urbanization, car ownership costs remain surprisingly modest.
Fuel prices hover around the global average, but high salaries and stable financing options make vehicles highly affordable relative to income. According to CarExpert’s 2025 analysis, an average Australian spends
less than 15% of their yearly income to buy and run a standard car, an impressive feat compared to countries where that figure exceeds 40%.
Add in low import tariffs and a booming used-car market, and it’s easy to see why owning a car Down Under doesn’t burn a hole in your pocket.
4. Canada
Canada ranks closely behind Australia, thanks to its mix of affordable fuel, good income levels, and well-regulated insurance industry. While the cost of buying a new car is similar to that in the U.S., Canadians tend to spend slightly more on maintenance due to colder climates and salt-treated roads that wear vehicles faster.
Still, the numbers are in Canada’s favor. Car ownership costs roughly 20% less relative to income than in most European nations. The strong Canadian dollar and an abundance of domestic and imported models make cars accessible to nearly all income levels.
From Toronto to Vancouver, car culture is a staple of daily life, not because it’s cheap fuel alone, but because the total cost of ownership stays within reach for the average worker.
5. Norway
Norway might not sound “cheap” at first, cars are expensive, but electric vehicle incentives flip the equation. With no purchase tax and free charging infrastructure for EV owners, Norwegians save thousands annually.
About 80% of new cars sold in Norway are electric, and low energy prices mean that, in practice, the cost of running a car is among the lowest in the world. The country proves that affordability isn’t just about low prices, it’s also about smart policy.
6. Switzerland
Like Luxembourg, Switzerland benefits from very high wages that offset the high sticker prices of vehicles and fuel. A strong currency, minimal import taxes on European cars, and an efficient public infrastructure make owning and maintaining a car relatively easy.
Though not the cheapest in absolute terms, the ratio of income to running costs makes Switzerland one of the world’s most car-friendly economies.
7. United Arab Emirates
In the UAE, fuel costs are among the lowest globally, and that alone dramatically reduces ownership expenses. Combined with low tax rates, new infrastructure, and a massive car market, it’s easy to understand why many expats find owning a vehicle here far cheaper than in their home countries.
Maintenance costs are moderate, but luxury cars can skew averages upward.
8. Finland
Finland offers moderate car prices, transparent insurance policies, and a strong used-car market. The government’s incentive for low-emission vehicles also helps drivers save on taxes and running costs.
9. Denmark
While Denmark’s purchase taxes are steep, the average Danish salary balances the scales. Once a car is bought, fuel, maintenance, and insurance costs are very manageable.
Danish drivers benefit from strong consumer protections and a steady supply of affordable small cars and hybrids.
10. New Zealand
Rounding off the list, New Zealand offers a strong balance of low import costs, competitive fuel prices, and manageable insurance. Its open vehicle market (mostly imports from Japan) ensures affordable prices and reliable quality.
In short, car ownership in these countries isn’t just accessible, it’s sustainable. For anyone planning to relocate or import a vehicle abroad, these are the countries where your car dreams are least likely to break your bank.
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