How Much Does It Really Cost to Own a Car in Germany?

The purchase price is the smaller half of the decision. Here is what a normal German household actually spends per year, and how to work out your own figure.

Kfz-Steuer: how it is calculated

Vehicle tax has two components: engine displacement and CO2. Petrol is taxed at €2 per 100 cm³ started, diesel at €9.50 per 100 cm³. On top sits a CO2 element, charged only above 95 g/km in rising bands.

CO2 (g/km)	Rate per g above 95
96–115	€2.00
116–135	€2.20
136–155	€2.50
156–175	€2.90
176–195	€3.40
over 195	€4.20

Pure electric cars registered up to 31 December 2025 are exempt from Kfz-Steuer until 31 December 2030, then taxed at a reduced weight-based rate.

A worked example: VW Golf 1.5 TSI

Kfz-Steuer: 1498 cm³ → 15 × €2 = €30, plus CO2 at ~130 g/km → 35 × €2.20 = €77. Total ≈ €107/year
Insurance (SF 15, Teilkasko, mid-size city): €450–700/year
Fuel: 15,000 km at 6.5 l/100 km and €1.75/l ≈ €1,700/year
Servicing and wear: €400–700/year averaged
HU/AU: €145 every two years ≈ €73/year
Depreciation on a €20,000 five-year-old car: €1,500–2,200/year

The honest total

Car type	Realistic annual cost (15,000 km)
Small petrol, 10 years old, paid off	€2,000–3,000
Compact petrol, 5 years old	€3,500–5,000
Mid-size diesel, 5 years old	€4,000–5,500
Electric compact, 3 years old	€3,000–4,500
Premium saloon, 5 years old, 250+ PS	€6,500–9,000

Costs people underestimate

Winter tyres — legally required in winter conditions. A second set plus storage is €400–900 up front.
Parking — a Stellplatz in Munich or Frankfurt runs €80–200 a month
Anwohnerparkausweis — cheap in most cities, but rising fast (Freiburg and others now charge well over €200/year)
Depreciation — the largest single cost on anything under eight years old, and invisible until you sell

Where diesel still wins

Diesel pays its higher tax back only at high mileage. The rough break-even against petrol is somewhere above 20,000 km a year. Below that, the cheaper petrol car, cheaper insurance and no DPF worries usually win.

Ready to shortlist?

Answer eight questions and we score 500 cars against your budget, priorities and driving personality.

Find My Car →