Average price of a new car in the Netherlands rises above 50.000 euros

The cost of buying a new car in the Netherlands has risen to over 50.000 euros, reports the Royal Dutch Touring Club (ANWB). This means more and more drivers are unable to afford new vehicles.

Driving in the Netherlands becoming more expensive

Figures from the RAI Association show that buying a car in the Netherlands this year will cost you an average of 50.026 euros - a lot more compared to five years ago when the average price was just 38.500 euros. There are concerns that car prices are rising out of reach for most residents.

In 1975, the modal income was around 10.437 euros, more than double the average price of a new car at that time (5.002 euros). This year, the modal income is expected to be 46.500 euros, which is below the average purchase price of a new car.

"We see that driving is becoming increasingly expensive. This applies to purchase, ownership, maintenance, and fuel costs. Our members are concerned about this, and so are we," an ANWB spokesperson told AD. 

Price of new cars on the rise

According to professor of transport policy at Delft University of Technology, Bert van Wee, there are some obvious reasons behind the rise in costs for a new car: they are more advanced and last longer.

Modern cars also have more comfort and safety features than cars did 50 years ago. "Think of crumple zones, ABS, airbags – sometimes eight to 10 per model – and cameras in the rear and front grille to automatically maintain sufficient distance," said car enthusiast and podcaster Carlo Brantsen. New cars also have air conditioning, internet, heated seats, and other gadgets that add to the overall cost.

Chairman of the RAI Association Frits van Bruggen believes that VAT and private motor vehicle and motorcycle tax (bpm) are behind higher prices. "A consumer pays an average of 34 percent in bpm and VAT when purchasing a petrol car, and 28 percent for a hybrid," said van Bruggen.

Second-hand cars more popular in the Netherlands

While the average new car price is over 50.000 euros, prices differ based on the type of car. Petrol cars cost an average of 34.884 euros, while fully electric cars cost 50.019 euros and hybrids cost as much as 71.559 euros. 

Despite the rise in average prices for new cars, “the average gasoline car is about the same price as it was in 2005", according to Van Wee. With this in mind, it is unsurprising that new car sales have dropped since 2007, while used car sales have increased significantly, according to economists at Rabo Research. 

In 1975, 34,5 percent of people over the age of 20 owned a car, compared to 63,8 percent in 2024, despite rising prices. More drivers are also opting to lease cars - almost 35 percent of all new cars purchased are privately leased. 

The RAI Association is calling for the government to phase out the bpm to keep mobility affordable and instead switch to a different system. For example, a tax with an environmental component based on consumption, like a price per kilometre.