New car prices in Netherlands soar past €50,000, leaving many buyers priced out

The average price of a new car in the Netherlands has risen sharply, exceeding 50,000 euros, a level that many Dutch consumers cannot afford, the ANWB motorists association warned.

According to the RAI Vereniging, the industry trade group, the average new car price climbed to 50,026 euros this year, up from less than 38,500 in 2020. This increase reportedly sharply contrasts with the typical price consumers want to pay. A survey by AutoTrack found that 81 percent of Dutch buyers are willing to spend no more than 15,000 euros — often less — on their next vehicle. Only 19 percent are prepared to pay more.

Edwin Timmer of ANWB stressed the financial burden. “We see that driving is becoming increasingly expensive. This concerns not only the purchase price but also ownership, maintenance, and fuel costs. Our members are worried, and so are we,” Timmer told AD.

TU Delft transport policy professor Bert van Wee said the increase outpaces inflation. “In 2005, the average new car cost 24,608 euros. Adjusted for 56 percent inflation, that would be 38,388 euros — far below today’s 50,026 euros average,” van Wee told AD.

The price hike reflects that modern cars are more advanced and last longer, Van Wee said. Brantsen noted that today’s cars are also heavier — roughly double the weight of cars 50 years ago, such as the Opel Kadett, which weighed 700 to 800 kilos compared to 1,400 to 1,500 kilos now.

Cars today come packed with safety and comfort features, Brantsen said, including crumple zones, ABS, multiple airbags, rear and front cameras for automatic distance control, air conditioning, internet connectivity, and heated seats. “We all expect these features now, but it comes at a price,” he told AD.

Van Wee pointed out that owning a used car six to eight years old can still provide up to ten years of service, keeping annual costs comparable to the past. The average price of a new gasoline car currently stands at 34,884 euros, roughly on par with 2005 prices, while electric and plug-in hybrid models cost significantly more—up to 50,019 euros and 71,599 euros, respectively.

In 1975, the modal income was about 10,437 euros, roughly twice the price of a new car at 5,002 euros. Today, with a modal income of 46,500 euros, average new car prices surpass income levels, reportedly signaling a shift in affordability.

RAI Vereniging chairman Frits van Bruggen told AD that taxes play a heavy role in new car prices. “A consumer pays about 34 percent in BPM and VAT for a gasoline car and 28 percent for a hybrid.”

The RAI advocates reducing the BPM tax, ideally shifting toward a mileage-based environmental tax to keep mobility affordable. Meanwhile, private lease is reportedly gaining popularity, with nearly 35 percent of all privately purchased new cars now leased.

Car ownership rates continue to rise: in 1975, 34.5 percent of adults owned a car, increasing to 47.8 percent in 1995 and 63.8 percent in 2024. However, since 2007, secondhand car sales have surged while new car sales have declined, according to Rabo Research economist Igor Džambo.