How Much Does It Cost to Own a Car in Germany: Post-Purchase Expenses

Car expenses in Germany don’t start with repairs, but immediately after purchase: insurance, taxes, fuel or charging, vehicle inspection, tires, maintenance, parking, and a contingency fund for breakdowns. Therefore, you need to consider not only the price listed in the ad but also the annual cost of ownership.

For two similar cars, the cost can vary by hundreds or even thousands of euros. The cost is influenced by the region of registration, insurance history, engine type, CO2 emissions, mileage, the driver’s age, access to home charging, and the condition of the specific vehicle.

Below is a practical guide for those who have already bought a car or are just comparing options before buying a car in Germany.

Major Expenses

Car ownership generally consists of the following components:

• car insurance;
• Kfz-Steuer — vehicle tax;
• gasoline, diesel, LPG, or electric vehicle charging;
• Hauptuntersuchung, commonly referred to as TÜV;
• scheduled maintenance and wear-and-tear parts;
• seasonal tires and storage of a second set;
• registration, license plates, and changes to the vehicle documents;
• parking, car washes, small consumables, and unscheduled repairs.

If the car is purchased new, depreciation is added to this. It doesn’t come as a separate bill, but it often turns out to be the largest cost associated with ownership.

Insurance

The minimum requirement to drive on the road is Haftpflicht, mandatory third-party liability insurance. Without it, the car will not be registered. Additionally, you can purchase Teilkasko or Vollkasko coverage.

• Haftpflicht covers damage to third parties.
• Teilkasko typically includes coverage for theft, glass damage, hail, fire, and certain natural hazards.
• Vollkasko provides broader coverage for damage to your own car, including some cases where the driver is at fault.

The price is influenced by the model and insurance class, region, driver’s age, annual mileage, list of authorized drivers, overnight parking location, deductible, and Schadenfreiheitsklasse—the no-claims class.

For newcomers to Germany, the issue of prior insurance history abroad is important. An insurer may recognize your previous accident-free history if you have documents from your previous insurance company, but this is not an automatic right. It’s best to request confirmation of your insurance history, policy terms, and the absence of claims in advance, and to have a translation prepared if necessary.

The following can help you save on insurance:

• comparing rates before purchasing a specific model;
• a reasonable deductible on comprehensive insurance;
• Restrictions on the list of drivers;
• realistic annual mileage;
• annual payment instead of monthly;
• a garage or a designated parking space;
• Werkstattbindung — repairs at the insurer’s partner service centers;
• telematics plan, if your driving style is a good fit.

Comprehensive coverage (Kasko) is usually a smarter choice for a new, expensive, financed, or leased car. For an older car with a low market value, third-party liability (Haftpflicht) or third-party liability plus partial coverage (Teilkasko) is sometimes sufficient.

Car Tax

Kfz-Steuer is not based on the car’s “apparent size,” but on the data in the documents. For passenger cars, the engine type, displacement, and CO2 emissions are important.

For gasoline-powered passenger cars, the base tax rate is 2 euros for every 100 cm³ of engine displacement or fraction thereof; for diesel cars, it is 9.50 euros. On top of this, a CO2 component is added. For cars first registered in 2021 or later, the CO2 component is calculated on a tiered scale starting at 95 g/km: the higher the emissions, the more expensive each additional gram becomes.

The data is taken from the Zulassungsbescheinigung Teil I, including engine displacement and CO2 emissions. If you’re still in the process of choosing a car, it’s best to check the tax in advance using the official calculator. This is especially important for diesel vehicles, large SUVs, and high-performance gasoline models.

A tax exemption applies to fully electric vehicles: pure electric vehicles that are registered for the first time or converted within the timeframes specified by law are exempt from Kfz-Steuer for a limited period. In 2026, it’s important to check the current version of the Kraftfahrzeugsteuergesetz and official guidelines, as the duration of the exemption has already changed and may depend on the date of first registration.

Fuel and Charging

For most owners, fuel or charging is the largest recurring expense. It’s not just the price per liter or kilowatt-hour that matters, but the combination of mileage, consumption, and route.

For a rough estimate based on 15,000 km per year, you can calculate it as follows:

• A gasoline-powered car with fuel consumption of about 6.5 L/100 km — approximately 1,600–1,900 euros per year at moderate gasoline prices;
• a diesel with fuel consumption of 5.5–6 L/100 km — approximately 1,400–1,800 euros, but with higher taxes and possible city restrictions;
• An electric vehicle with a range of 17–19 kWh/100 km is noticeably cheaper when charged at home and significantly more expensive when regularly fast-charging at public stations.

For those who drive a lot, it’s worth keeping a separate eye on gas prices in Germany. Gas stations on the Autobahn are often more expensive than those in the city or suburbs. For gasoline-powered cars, it’s helpful to check compatibility with E10: if the engine accepts this fuel, it can often help reduce costs slightly.

The situation is different for gas-powered cars. LPG is still available and can pay off with high mileage, but CNG requires caution: the infrastructure has become less convenient, and you should check for actual refueling stations along your routes before buying.

An electric car is most cost-effective when you have home charging, charging at work, or a transparent rate plan. If the car is almost always charged at expensive fast-charging stations, the savings compared to fuel-efficient gasoline can drop significantly.

Vehicle Inspection, Maintenance, and Tires

The Hauptuntersuchung () is mandatory for registered vehicles. For a new passenger car, the first HU usually takes place three years after initial registration, and then every two years thereafter.

Scheduled maintenance depends on the make, engine type, age, and mileage. You should budget for:

• oil, filters, brake fluid, and diagnostics;
• brake pads and rotors;
• battery, spark plugs, belts, bulbs, and wiper blades;
• suspension, shock absorbers, and steering components;
• repairs to electronics, sensors, and driver-assistance systems;
• bodywork repairs following damage.

For a used car, it’s best to set aside an annual budget for unexpected repairs. A single visit to the repair shop can easily wipe out the savings from a cheap purchase if the car has hidden issues.

When it comes to tires, the rule depends on the situation: in winter driving conditions, you need suitable winter or all-season tires. Starting in October 2024, the M+S marking alone will not be sufficient; you’ll need the “Alpine” marking featuring a mountain and a snowflake. This is important not only to avoid fines but also for insurance coverage in the event of an accident.

Parking and City Restrictions

In large cities, parking becomes a separate expense. Potential costs include a resident parking permit, renting a Stellplatz, a garage, paid parking zones, parking at work, and fines for violations.

If you’ll be using the car mainly for city driving, it’s worth checking the following in advance:

• Is there a place nearby for overnight parking?
• Does the area fall within an environmental zone;
• Do you need an emissions sticker?;
• Are there any restrictions on diesel vehicles related to diesel bans;
• how well short trips suit the chosen engine.

For commuting to work, it’s helpful to remember that you may be able to partially claim your travel expenses through on your tax return, provided the conditions for such deductions are met.

Approximate Annual Budget

The figures below are estimates that do not take into account the purchase price, loans, leasing, depreciation, expensive garage fees, or major accidents. The actual amount depends on the car, the region, and the driver.

Scenario	Insurance	Tax	Fuel or Charging	Maintenance, Tires, HU	Total per Year
Small gasoline-powered car, 10,000–12,000 km per year	400–900 euros	40–120 euros	1,000–1,400 euros	500–1,000 euros	1,940–3,420 euros
Family gasoline car or hybrid, 15,000 km per year	600–1,400 euros	80–220 euros	1,400–2,200 euros	700–1,500 euros	2,780–5,320 euros
Diesel crossover, 15,000 km per year	700–1,600 euros	200–450 euros	1,400–1,900 euros	900–1,800 euros	3,200–5,750 euros
Electric vehicle with home charging, 15,000 km per year	700–1,600 euros	0 euros during the tax break period	900–1,200 euros	500–1,000 euros	2,100–3,800 euros

If you’re buying a new car, you should add depreciation to these amounts. Sometimes, comparing the options of buying, leasing, and an Auto Abo can affect the calculation more than the difference in tax or insurance.

Frequently Asked Questions

Is it possible to drive a car with foreign license plates after moving to Germany and avoid paying German fees?
For permanent residents, this scenario is usually risky. If the car is actually located and used in Germany, you need to check the rules regarding registration, insurance, and taxes. Trying to “drive a little longer with the old license plates” could lead to problems with government agencies and your insurance company.

Will an accident-free driving record from another country be taken into account?
Sometimes, yes, but only if the insurance company accepts the documents. You’ll need proof of your previous policy, the coverage period, and your claims history. It’s best to gather these documents before moving or before taking out your first German policy.

Which is more cost-effective for city driving: gasoline, diesel, hybrid, or electric?
For short city trips, a compact gasoline, hybrid, or electric car is often more convenient. Diesel cars really shine on high-mileage and long routes, but in the city, their advantages may be offset by taxes, maintenance costs, and environmental restrictions.

Does it make sense to get comprehensive insurance (Vollkasko) for an older car?
You should compare the cost of the policy with the market value of the car. If the annual insurance premium is too high relative to the car’s price, third-party liability (Haftpflicht) or partial coverage (Teilkasko) is often sufficient. For expensive, new, financed, or leased cars, comprehensive coverage (Vollkasko) is usually a better choice.

Why does car maintenance in Germany seem expensive?
Not only have mechanics’ labor hours become expensive, but so have parts, diagnostics, body repairs, and electronics. The more complex the car, the more important it is to check the service history and typical costs for that model before buying.

Conclusion

It’s convenient to calculate the annual cost of owning a car in Germany rather than looking at individual bills. The minimum set of costs includes insurance, Kfz-Steuer, fuel or charging, HU, maintenance, and tires. For a used car, you’ll definitely need a budget for repairs, and for a new car, you’ll need to factor in depreciation. The cheapest purchase isn’t always the cheapest to own.