A car is quite a costly acquisition, so every driver carefully considers how much it would be reasonable to spend on a vehicle.
The auto data company carVertical conducted a study to determine how many months a driver from European countries, including Romania, would need to work to afford a second-hand mid-range car.
The calculation was based on the average salary in each country, and the study showed that the affordability of cars varies significantly between countries.
Romanians allocate more than 15 months of salary to buy a used car
After analyzing the second-hand car markets in 23 European countries involved in this study, it was found that, on average, it takes nearly 10 months of work to buy a mid-range used car. Many drivers may find it challenging to acquire such a car.
Romania ranks 2nd out of the 23 countries studied – drivers in the country would need to work on average 15.4 months to buy a second-hand car.
Portuguese drivers would need to work the most to afford a mid-range used car – up to 22.4 months, while Serbians rank 3rd with 14.7 months.
Finns would need to work the least for a car – only 2.7 months, followed by Germans – 6 months, and Swiss – 6.1 months.
In reality, buying an average second-hand car could take much longer, considering that no person can save 100% of their monthly income.
Financial experts generally recommend not spending more than the equivalent of your 6-month salary on a car. However, in most of the countries surveyed, car buyers break this rule by purchasing more expensive models.
The accessibility of cars varies significantly from one country to another
In Romania, the average salary is 832.2 euros, and according to Instant.ro, Romanians spend an average of around 12,800 euros on a used car.
However, choosing a vehicle is a subjective decision based on each driver's personal preferences, which significantly influence the price that drivers end up paying for the desired used car.
For example, the Volkswagen Passat and BMW 3 Series are among the most popular car models in Romania.
The average price for a Passat is 18,500 euros, with the average driver needing approximately 22.2 months of work to afford it.
The BMW 3 Series costs around 25,500 euros, meaning it takes about 30.6 months of the average salary to buy it.
The most expensive cars in Europe are chosen by the Swiss.
The average price of a second-hand car in this country is nearly 39,000 euros. However, the average salary in Switzerland is the highest among all the countries surveyed – 6,377 euros.
Austrians follow with an average price of 28,500 euros for a used car, and Portuguese with 24,200 euros. Although the cost of a car is similar in Austria and Portugal, salaries differ significantly: 2,600 euros in Austria and less than 1,100 euros in Portugal.
The lowest amounts spent on a second-hand car are in Ukraine (almost 5,000 euros), Latvia – 7,500 euros, and Finland – 8,000 euros. The purchasing power of these countries also varies significantly: the average salary in Ukraine is 394 euros, in Latvia 1,100 euros, and in Finland over 2,900 euros.
While for some drivers it may be too expensive to spend an amount equivalent to several months of salary on a used car, it must be remembered that second-hand vehicles may come with additional costs. Many used cars are put up for sale with tampered odometers or hidden damages.
Signs of stability in the second-hand car market
Matas Buzelis, an auto expert at carVertical, notes that sales of second-hand cars have recovered from stagnation, and the market situation is better compared to last year.
As new vehicle sales have picked up, the second-hand market has finally been filled with used cars that have had only one owner so far, expanding the selection range for consumers.
"Across Europe, we are witnessing signs of stabilization in the second-hand car market. The prices of used cars are consistently experiencing a slight decrease, and the supply of second-hand cars matches the demand for these vehicles. The main reason why people haven't sold their cars in recent years has finally disappeared – buyers of new cars no longer have to wait years to receive their ordered vehicles," explains Matas Buzelis from carVertical.
Methodology
The carVertical study analyzed and ranked in descending order the 23 European countries based on how many months of work are needed to buy a used car. The number of monthly salaries required to purchase a used car was calculated using the average price of a second-hand car and the average net salary in each country.
The average price of used cars in different countries was determined using publicly available sources: media publications, statistics from advertising portals, information from carVertical partners, and data from public institutions for 2023-2024. The average salary in different countries was collected from the Numbeo portal. The study was conducted between June and July 2024.