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A global analysis released in March 2025 by the British consultancy Scrap Car Comparison brought a worrying fact. The Brazil is one of the most expensive countries in the world to own a new car. The survey showed that the total cost of purchasing and maintaining a vehicle can exceed 461% of the average annual income of Brazilian workers. Thus, the automobile became a true luxury item in the country.
The research evaluated 98 countries and considered expenses with purchase, fuel, insurance, maintenance and taxes. In this context, only Philippines and Colombia surpass Brazil in the ranking of nations where having a car is more expensive.
We also pack any seven of the ten most expensive countries to have a car are in Latin America. This demonstrates a regional pattern marked by high taxation, high interest rates and expensive fuel. According to the report, the average cost for a Brazilian to buy and maintain a car is 4,6 times higher than your annual income. In developed countries, this number is much lower.
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While Brazil faces one of the highest costs on the planet, the United States lead among the countries where owning a car is most affordable. There, the total cost of acquisition and maintenance represents only 56,4% of the average annual salaryAccording to Scrap Car Comparison.
Soon after they appear Australia with 61,8%, and Canada with 39,9%. This data reinforces the difference in purchasing power and tax infrastructure. Although cars are essential in many economies, in Brazil it is still treated as an inaccessible luxury for a large part of the population.
The survey identified the main villains of the Brazilian automotive budget: high taxes, expensive fuel, expensive insurance and high interest rates on financing.
According to National Association of Automotive Vehicle Manufacturers (Anfavea), the average price of new cars has increased more than 40% between 2020 and 2024. The rise was driven by inflation, currency devaluation and production costs.
Furthermore, the average price per liter of gasolineaccording to National Petroleum Agency (ANP), exceeded R$ 5,90 in February 2025This increase increases the weight of fuel in the total maintenance cost.
Another important factor is the financing rates, which are among the highest in the world. According to the central bank, average interest rates exceed 25% per year, which makes it even more expensive the dream of owning a car.
For mobility and economy experts, the current scenario turns the car into a symbol of social inequality. Without tax reforms and effective public policies, access to individual mobility will remain restricted.
O Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV IBRE) warns that the rise in car prices jeopardizes the renewal of the national fleet, today with an average age higher than 10 yearsThis situation increases the risk of accidents and pollutant emissions.
The study of Scrap Car Comparison reinforces that review taxes and encourage more efficient vehicles is essential to balance the market and boost the Brazilian automotive economy.
Although the government is discussing measures to encourage the automotive industry, such as Move Program, launched in 2024, the impact on the consumer is still small.
Brazil continues to face high tax burden, persistent interest rates and poor infrastructure. While other countries move towards electrification and sustainable mobility, Brazilians still struggle to have access to the basics — their own car.
Given this scenario, pressure is growing for tax reforms and affordable credit policiesThese changes could democratize individual transportation and strengthen the automotive production chain.
What do you think should be Brazil’s priority: reducing taxes and facilitating access to new cars, or investing in public transportation and sustainable mobility to ease the burden on citizens’ pockets?
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