It may not seem like it amid the cost of living crisis currently affecting most Aussies but, according to new research, car ownership is more affordable in Australia than any other country bar one.
The research, conducted by Scrap Car Comparison, analysed car ownership costs in 98 countries, including the average factors like purchase price, insurance, fuel, breakdown cover, and repair bills, then compared them against incomes in each nation.
Using the Toyota Corolla and Volkswagen Golf as its basis, the study sourced June 2025 data from Numbeo.com and Autocosts.info to determine the percentage of each country’s average annual salary required to purchase and run a new car.
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The US ranked as the most affordable country in which to own and run a car, with costs equating to 56.4 per cent of the average yearly salary.
Australia followed in second place, with car ownership costs amounting to 61.8 per cent of the average annual salary, followed by Canada in third.
The Netherlands and Norway rounded out the top five, with car ownership costs accounting for almost two-thirds (89 and 88 per cent respectively) of the average annual salaries in both countries, a result which Scrap Car Comparison attributed to “low interest rates and high-income levels here”.
Despite its reputation for high living costs, the UK claimed the final spot in the top 10, with car ownership costing 105 per cent of the annual average salary.
The top 10 most affordable countries in which to own a car:
| Rank | Country | % of average yearly salary required to buy and run a car |
|---|---|---|
| 1 | United States | 56.4% |
| 2 | Australia | 61.8% |
| 3 | Canada | 69.9% |
| 4 | Netherlands | 83.5% |
| 5 | Norway | 88.1% |
| 6 | Germany | 89.1% |
| 7 | Sweden | 90.5% |
| 8 | Finland | 95.5% |
| 9 | Ireland | 105.0% |
| 10 | United Kingdom | 105.2% |
In contrast, the Philippines was ranked as the most expensive country, with car ownership costs found to be nearly five times the average annual income there.
Scrap Car Comparison said this was due to “import-dependent supply, high taxes, and weak infrastructure contributing to strain on a population who generally have quite a low income”.
The Philippines was followed on the list of most expensive countries in which to own a car by South American countries including Colombia and Brazil. In fact, out of the top 10 most costly countries in which to own a car, the data showed 70 per cent are located in Latin America.
Scrap Car Comparison customer service manager Matt Clamp said the costs associated with owning a car have increased across the world, and that the latest results highlight the vast differences in car ownership affordability across most countries.
The top 10 most expensive countries in which to own a car
| Rank | Country | % of average yearly salary required to buy and run a car |
|---|---|---|
| 1 | Philippines | 470.7% |
| 2 | Colombia | 466.1% |
| 3 | Brazil | 461.9% |
| 4 | Turkey | 444.3% |
| 5 | Ecuador | 412.1% |
| 6 | Peru | 373.5% |
| 7 | Argentina | 363.0% |
| 8 | Uruguay | 338.9% |
| 9 | Costa Rica | 304.1% |
| 10 | India | 289.0% |
“While car ownership can be prohibitively expensive in many developing countries – due to high import duties, taxes, and limited financing options – the picture is far more optimistic in much of Europe and the western world,” he said.
“Access to locally manufactured vehicles, competitive financing, and a well-established used car market means that owning and maintaining a car is more attainable than ever.
“Plus, efficient scrappage schemes and recycling programs ensure older vehicles are responsibly retired, making room for cleaner, more cost-effective models on the road.
“What’s encouraging is that western infrastructure also supports not just car ownership, but car lifecycle sustainability – from first purchase to final scrap. It’s a system that works well for consumers and the environment alike.”