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Why second-hand cars are getting (even more) expensive in Denmark

Used cars have never come cheap in Denmark, and the last year has seen prices increase even further.

New and used cars at a dealership in Denmark in 2017. The price of used cars in the country has accelerated over the last year.
New and used cars at a dealership in Denmark in 2017. The price of used cars in the country has accelerated over the last year. Photo: Henning Bagger/Ritzau Scanpix

A relative scarcity of used cars on the market in the last year has helped to push up the price of second-hand automobiles.

A consistent upward trend in prices over the last year shows no sign of decelerating. Last month’s average price increase of 3 percent is the highest ever, according to motoring media Bilbasen, which analysed market figures on behalf of national broadcaster DR.

“The market is overheated. There’s simply such a high demand for used cars. When you combine that with a shrinking supply, we see these massively increasing prices,” an analyst with FDM, the association for Danish motorists, told DR.

Using a four-year-old Skoda Octavia as an example, the price has increased by 30 percent in the last year, from 200,000 kroner to 260,000 kroner, according to Bilbasen.

High demand for used cars is partly a result of longer waiting times on orders for new cars, DR also writes.

That is due to a global shortage in microchips used by all manufacturers in new car production. Closures at harbours and other transport issues related to the Covid-19 pandemic also play a role.

As a result, delivery times on new car orders in Denmark, usually 3-4 months, have approximately doubled.

This means that car dealership forecourts across the country have few used cars available. And even the new models on show are primarily ones that have already been sold and are waiting for delivery.

But used cars were already expensive in Denmark before this. Why? 

Road tax, fuel, insurance and maintenance all contribute to the high costs of running a car in Denmark.

In addition, Vehicle Registration Tax (Registreringsafgift) represents an enormous outlay for motorists and must be added to the purchasing price as well as value-added tax (moms in Danish) to find the total cost of buying a new car.

Although this expense may not be payable on used cars (provided they are already registered and have a valid Danish number plate), the knock-on effect of such high prices for new cars can be felt in the used car market.

READ ALSO: Explained: Why is it so expensive to buy a car in Denmark?

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MONEY

REVEALED: Your money-saving tips for life in Denmark

Denmark is famously one of Europe's most expensive countries, so we asked our readers in the Nordic nation for their top Danish savings tips.

REVEALED: Your money-saving tips for life in Denmark

Denmark was named as the most expensive European Union country for basic goods and services in 2022, along with Ireland. Data from the EU’s statistics agency Eurostat showed that price levels in Denmark were 40 per cent higher than the EU average.

For consumer goods and services, Denmark had the highest prices of all EU member countries, coming in at 49 percent above the EU average.
 

As many as 90 percent of our readers surveyed said that Denmark is an expensive country to live in but had many money-saving tips to share.

 
“Use Earlybird for booking restaurants…the Tilbudsavis app to find discounts on groceries, buy coffee capsules online, never pay for electricity Aconto – settle only for actual consumption, get a prepaid phone plan from Lycamobile or Lebara as it’s best value for money,” 31-year old Ivan in Copenhagen suggested.
 

Cooking at home and avoiding eating out was a popular suggestion from many readers. They also recommended researching online before buying expensive products and to check discounts in supermarkets.

 
37-year old Magda based in Copenhagen said, “Use the minetilbud app so you can buy øko [organic, ed.] products for lower prices, buy discounted products in a larger amount and store them, buy good quality bread or øko meat/fish with a short expiration date and freeze it…grow your own vegetables, use the Too Good To Go app.”
 
Reader Kevin added, “I buy bulk goods when they are on sale and then freeze them for later.”
 
Money-saving tips also included using the commuter discount card Pendlerkort for public transport and car-sharing or renting a car instead of buying.
 
One reader said, “For public transportation, check company card options with your employer. For insurances, check your employer schemes and do your research online with comparison tools. For car insurance, consider joining a motorist association as they offer much cheaper car insurance plus other benefits. There is little sense in buying new or large cars as they are excessively expensive.”
 
 
For those with children, it was recommended to buy annual membership cards to zoos, museums and amusement parks if you will visit at least twice a year.
 
“Buy second hand stuff especially for babies and small children and check out libraries or cultural centres for events, especially for kids as they are often free,” one reader said.
 

Petra, from the Czech Republic and living in Aarhus said, “use second hand apps and shops, circular economy apps like Reshopper, or apps selling close to sell-by-date foods like Too Good To Go.”

 
There were several suggestions from our readers to travel out of Denmark to buy certain goods and services. 
 
“Travel to Malmö and do a huge shop there and buy goods in Germany or Sweden, while on trips,” Scott, aged 67 and living in Copenhagen advised.
 
32-year old Hanna, based in Copenhagen said she got all her beauty procedures done abroad.
 
“Find psychologists, teachers, and even personal trainers abroad. Buy vitamins and basic medications in German online pharmacies,” she added.
 
 
Some 92 percent (34 out of 37) of our readers in the survey said the expense of Denmark had changed the way they live, compared to other countries. Many noted how they don’t go out to eat and drink as much, or to the cinema or theatre. Others said a lot of their money went on bills and rent, leaving less to spend on leisure activities.
 
A much lower proportion, 38 percent said they would consider moving away from Denmark because of how expensive it is. 
 
Items people found particularly expensive in Denmark included rent, property, food, especially healthy food and sweets, alcohol, coffee shops, clothing, the price of spectacles, eating out, cinema and theatre, family trips out for example the zoo, museums, public transport and taxis, petrol, cars, dry cleaning, hairdressers, spa treatments, handyman services, and electricians.
 
The items our readers found cheaper in Denmark compared to other countries were education, healthcare, internet and mobiles, car insurance, long-distance bus journeys, bikes, some food (such as rye bread), clothing, houses outside of city centres and even real estate in Copenhagen relative to other European capitals.
 
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