Owning a car in Europe extends far beyond the initial purchase price. The ongoing expenses, including fuelservicingspare parts and repairs can significantly inflate the annual budget. A comprehensive study conducted in August 2026 by eCarsTrade, a leading B2B car company, analyzed over 30 European countries to identify the regions where motorists face the highest costs of keeping a vehicle on the road.
The study combined household spending on servicing, spare parts, and repairs with the relative cost of fuel and lubricants to produce a Car Cost Score out of 100. This score revealed the most expensive countries for car ownership, with Iceland topping the list.
Iceland: The pinnacle of car ownership expenses
Iceland stands out as the most expensive country in Europe for car ownership, with a Car Cost Score of 78.1. Motorists in Iceland spend approximately €4,357 annually on operating their vehicles. The high cost is primarily driven by fuel prices, which are 28.4% above the European average. Despite driving relatively new cars, averaging 8.9 years, Icelanders still face premium servicing costs.
Luxembourg: High maintenance, lower fuel costs
Luxembourg ranks second in the study, with the highest annual maintenance and repair spending among the countries analyzed. Drivers in Luxembourg spend nearly €6,400 annually to keep their cars on the road. While fuel prices are about 10% below the EU average, the high maintenance and repair costs offset this advantage. This makes Luxembourg a unique case where filling up is relatively affordable, but everything else related to car ownership is not.
Denmark and the Netherlands: Steep fuel prices and aging fleets
Denmark and the Netherlands also feature prominently in the list of the most expensive countries for car ownership. In Denmark, petrol and diesel cost 15% above the EU average, contributing to annual running costs of around €3,600. The Netherlands ranks fourth, with fuel prices nearly 14% above the EU average and annual running costs exceeding €3,200. Dutch motorists also drive older cars, averaging 12 years, which require more frequent repairs.
Norway: Rising insurance costs and aging vehicles
Norway rounds out the top five, with drivers spending just over €3,000 annually to maintain their vehicles. Fuel prices here are around 6% above the EU average, and insurance costs saw a significant jump of 15% in 2025. The aging vehicle fleet in Norway, averaging over 11 years, contributes to rising maintenance needs and higher insurance rates.
The study highlights the impact of global events, such as the Iran war, on fuel prices across Europe. It notes that while fuel prices have spiked, they rarely return to pre-crisis levels. This trend, along with rising maintenance and insurance costs, makes electric vehicles an increasingly attractive option for European motorists.
