RIO DE JANEIRO, BRAZIL – First it was the pandemic, then the high dollar. More recently, electronic components began to be in short supply in the market.
Together, these factors and an unstable economic scenario resulted in an increase of the price for new cars in Brazil since last year, whichin turn led to the price charged for used cars to increase as well. It is becoming increasingly difficult to buy and maintain a new car in the country.
The struggle Brazilians have been feeling was pointed out in a study by British consulting company Scrap Car Comparison, which cross-referenced the population’s average income data with the prices charged for new vehicles and maintenance costs.
The study assessed the impact of buying a car on the average annual salary in 40 countries, listing those where buying a new car weighs more or less on people’s pockets. To find the average price of a car, the Volkswagen Golf and the Toyota Corolla models sold in all of them were used as parameters. Costs for fuel, repairs and insurance were also added.
And to no one’s surprise, Brazil is among the worst placed.
Topping the list of the most expensive countries to buy a new car is Turkey, where the average price of a new car represents 652.29% of the average annual income of a worker in the country.
Argentina, which is experiencing an economic crisis, came 2nd. In that country, the average cost for buying a new car and its maintenance represents 515.77% of the average worker’s salary in the country. Next come Colombia, with 508.93%, and Uruguay, with 443.68%.
Brazil is ranked 5th. Buying and maintaining a new car in the country represents spending 441.89% of a worker’s average annual income.
It is also interesting to note that, in addition to Turkey, only 2 of the 10 most expensive countries to buy and maintain a new vehicle are in Europe: Ukraine and Russia, in 6th and 8th place, respectively. All other countries on the list are Latin American.
The Scrap Car Comparison report also notes that “wages play a key role in defining how affordable a vehicle can be in each country. In low-income nations, it is much more expensive to buy and maintain a 0 km car, although prices may be comparatively lower than in the rest of the world.”
Most expensive countries to buy and maintain a new car
1) Turkey 652.29%
2) Argentina 515.77%
3) Colombia 508.93%
4) Uruguay 443.68%
5) Brazil 441.89%
6) Ukraine 413.78%
7) Guatemala 355.94%
8) Russia 290.04%
9) Mexico 285.20%
10) Costa Rica 269.83%
And the cheapest?
While Brazil is in one of the worst positions in the ranking, one can only wonder what life is like for those who live in the 10 countries where it is cheaper to buy and maintain a new car.
This is the case in the United States, where the purchase and maintenance of a new car represents only 54.87% of workers’ average annual income. The Americans did not even top the list: Australia was the leader. There, buying a new car compromises 49.48% of what a worker earns in a year.
For anyone surprised by the presence of countries like Sweden and Denmark among the cheapest countries to buy a new car, it is worth noting that despite their high tax burdenl, workers’ average income there is much higher than in Brazil.
Cheapest countries to buy and maintain a brand new car
1) Australia 49.48%
2) USA 54.87%
3) Denmark 60.34%
4) Canada 64.40%
5) Sweden 75.84%
6) Germany 78.44%
7) Netherlands 84.65%
8) France 87.00%
9) United Kingdom 89.36%
10)Finland 91.58%
Source: CNN Brasil
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This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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