Switzerland had the highest price tags on new passenger cars sold in 2020, overtaking Norway for the first time in five years. Swiss people had to dig deeper into their pockets than any of their European neighbors, with prices roughly 15,000 euros higher than the EU-28 average. Reasons for automobiles being so costly in Switzerland are partly due to tax rates, which are set by each canton based on a set of varying criteria including but not limited to vehicle weight, powertrain, and CO2 emissions. These incentives contribute to making larger, heavier vehicles using petrol and diesel engines more expensive. The only vehicles exempt from taxes in selected cantons were electric cars. Electric vehicles are extremely popular in Norway, second in the ranking in terms of average vehicle price, in parts due to the VAT and tolls exemptions for electric vehicles in the country. Norwegian buyers are able to spend more on high-tech models.
Car tax rates in Nordic countries higher on average
Other European countries with a 25 percent tax rate on acquisition are Croatia, Denmark and Sweden, while those in Hungary even exceeded Norwegian rates by two percent. As seen in this statistic higher tax rates on passenger cars translates to higher prices overall. Sweden and Denmark both appeared in the top seven most expensive car buying countries. Hence, in terms of volume of new car registrations, Northern European countries trailed behind not only their more populous neighbors, but also other smaller countries where tax rates were lower.
Prices for passenger cars to stay stable
Prices for passenger cars were forecast to stay relatively stable in the next three years, with only slight increases expected. Luxury cars were the only group where price change was estimated to be more prominent.
Average price (including tax) of passenger cars in Europe in 2015 and 2020, by country
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ICCT. (December 17, 2021). Average price (including tax) of passenger cars in Europe in 2015 and 2020, by country (in euros) [Graph]. In Statista. Retrieved May 17, 2022, from https://www.statista.com/statistics/425095/eu-car-sales-average-prices-in-by-country/
ICCT. "Average price (including tax) of passenger cars in Europe in 2015 and 2020, by country (in euros)." Chart. December 17, 2021. Statista. Accessed May 17, 2022. https://www.statista.com/statistics/425095/eu-car-sales-average-prices-in-by-country/
ICCT. (2021). Average price (including tax) of passenger cars in Europe in 2015 and 2020, by country (in euros). Statista. Statista Inc.. Accessed: May 17, 2022. https://www.statista.com/statistics/425095/eu-car-sales-average-prices-in-by-country/
ICCT. "Average Price (including Tax) of Passenger Cars in Europe in 2015 and 2020, by Country (in Euros)." Statista, Statista Inc., 17 Dec 2021, https://www.statista.com/statistics/425095/eu-car-sales-average-prices-in-by-country/
ICCT, Average price (including tax) of passenger cars in Europe in 2015 and 2020, by country (in euros) Statista, https://www.statista.com/statistics/425095/eu-car-sales-average-prices-in-by-country/ (last visited May 17, 2022)