How affordable is driving?

You can travel long distances in the Netherlands by bike and public transport, but life is a lot more difficult without a car. This is bad news for people on a tighter budget. New cars are hardly affordable and used cars have never been so expensive.

Last year, 312,129 new cars were registered in the Netherlands, more than half of which were used for business purposes. As usual, the used car market is significantly larger with around 1.2 million used cars sold in 2022. Logical: New cars have become significantly more expensive in recent years.

Is driving still affordable?

Most private drivers with a limited budget opt ​​for a used petrol engine. Unfortunately, they are also becoming less and less affordable. Figures from the used car website Autoscout24 show that the average asking price for a used car is currently over 25,000 euros, an absolute record.

Why? The demand for used cars has never been higher and the supply has been disappointing, says Paul de Waal from the Bovag trade association. “There is a huge shortage of used cars,” he explains. “There are mutliple reasons for this. First, new car sales have been low for years. That means fewer cars are entering the used market. I estimate that we are missing about 100,000 used cars every year.

Secondly, many Dutch people bought cheap used cars during the Corona period so as not to have to rely on public transport. And they don’t just resell them.”

increase in the price of petrol

“It’s not good for our members,” says Luuk Brink, chairman of the EAC Foundation, a consumer organization for private motorists. “Our goal is to keep driving affordable,” he explains, “but these developments make that very difficult.” But what should happen then? The ANWB advocates not increasing the excise duty on fuel. Last April, the government lowered this tax to offset skyrocketing gasoline and diesel prices at the time. This temporary reduction will end on July 1, increasing the price of a liter of petrol by almost 14 cents and diesel by around 10 cents.

A further increase in consumption tax will follow on January 1, 2024. A survey of 2,200 readers of ANWB Kampioen shows that for 37 percent, filling up is an attack on the monthly budget. More than a third of those surveyed state that buying another car, whether new or used, is too expensive. What can the government do about it? 70 percent of those surveyed think they should levy fewer taxes on fuel or the purchase of a new car.

Shared car solution for affordable driving?

However, Luuk Brink believes the car should not be viewed as a sacred cow. “It may sound surprising from me, but if transport can be better organized, then that’s my preference.” Among other things, he refers to shared cars, such as those from Greenwheels and Share Now, public transport and other forms of mobility. “Change is difficult,” admits Brink.

“After all, people are used to always being able to drive.” To make matters worse, public transport seems to be shrinking. A report by the Dutch Agency for Environmental Impact Assessment shows that accessibility varies greatly by region and is sometimes downright poor in rural areas. We should hold the government accountable for this, says Brink. “Because the time could soon be over when everyone can still drive a car.”