Where does Australia rank among the most affordable countries to own a car?

A new global study by Scrap Car Comparison names the United States the most affordable place to buy and run a car, after analysing ownership costs across 98 countries and benchmarking them against average earnings. Australia and Canada complete the podium, while the Philippines emerges as the least affordable market, where total costs equate to nearly five times the average annual salary.

Researchers combined the average price of two mainstream new cars (VW Golf and Toyota Corolla) with annual fuel, insurance, breakdown cover and repair costs, then expressed the total as a share of each country’s average yearly income. The results reveal stark disparities between regions – and clear advantages for higher-income, developed markets with robust vehicle supply and finance options.

In the United States, the combined cost of purchase and running a car amounts to 56.4 per cent of the average salary. Australia follows at 61.8 per cent, and Canada at 69.9 per cent. Northern Europe also fares well: the Netherlands (83.5 per cent), Norway (88.1 per cent), Germany (89.1 per cent), Sweden (90.5 per cent) and Finland (95.5 per cent) all place in the top ten. The UK rounds out the list in tenth, at 105.2per cent.

By contrast, affordability collapses in parts of Latin America and the Philippines, where high import duties, taxes, weaker local currencies and limited financing elevate the cost burden dramatically. Seven of the ten least affordable countries are in Latin America; in the Philippines, the all-in cost reaches 470.7 per cent of average annual income.

“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,” said Matt Clamp, Customer Service Manager at Scrap Car Comparison.

“Access to locally manufactured vehicles, competitive financing, and a strong used-car market makes ownership more attainable, while scrappage and recycling programmes support a cleaner, cost-effective vehicle lifecycle.”

Top 10 Most Affordable Countries to Own a Car

Top 10 Most Expensive Countries to Own a Car

Methodology: Costs for purchase (VW Golf/Toyota Corolla average), fuel, insurance, breakdown cover and repairs were totalled and compared with each country’s average salary to derive affordability. Data current to June 2025.