A growing share of Spaniards can no longer afford to buy a car as vehicle prices soar and incomes stagnate. The shift is pushing more people toward used cars and leaving many young adults without a driving licence.
For the fourth year in a row, more Spaniards are finding themselves priced out of car ownership. By 2025, 5.4% of the population could not afford to buy a car. Just a few years ago, Spain had better access to cars than most of Europe. Now, with new car prices climbing and household budgets under strain, owning a car is out of reach for many.
Eurostat figures show the shift clearly. While the European Union has managed to lower the share of people unable to buy new cars over the past decade, Spain has moved in the opposite direction. In 2016, Spain’s rate of car unaffordability was 1.5 points below the EU average. Today, it has not only caught up but is now higher, with the gap growing since the pandemic.
In 2025, Spain's car fleet remained among the oldest in Europe, with an average vehicle age of 14.6 years and nearly 29 million vehicles over 9 years old.
The reasons are straightforward. New cars have become much more expensive, pushed up by higher production costs, new technology, and stricter safety rules. At the same time, Spanish wages have not kept up with inflation or the rising cost of living. For many families, the price of a new car now competes with essentials like rent and groceries, forcing tough decisions.
The situation is even tougher for young adults. Only 48% of Spaniards under 34 have a driving licence, according to Auto Bild. Getting a licence costs between €800 and €1,500, and that’s before insurance, fuel, and maintenance. For many, the independence a car once promised now looks like a financial burden.
As a result, the used car market is booming. In 2025, Spain saw about 3.2 million used car sales, compared to just 1.3 million new car registrations. The second-hand market has always been important for buyers on a budget, but the gap between new and used sales has grown sharply during tough economic times. More people are turning to older cars as new models become unaffordable.
According to industry associations GANVAM and Faconauto, in August 2026, Spain recorded 155,532 used car sales—a 6.1% year-on-year increase. For every new car registered that month, there were about 1.5 used car transactions, highlighting the dominance of the second-hand market.
Other European countries are not all following Spain’s path. Malta, Luxembourg, Poland, France, and Italy have much lower rates of car unaffordability. Poland, for example, has cut its share in half over the past decade, helped by strong economic growth. Meanwhile, Finland, Hungary, Bulgaria, and Greece still have even higher shares of people unable to afford a car.
Car makers are reacting to the squeeze. Traditional brands have raised prices, pointing to higher costs and new technology. At the same time, low-cost and Asian brands—especially from China—are gaining ground by offering cheaper options. This is changing the market and giving Spanish buyers some new, if limited, choices.
The struggle to own a car is not just a Spanish issue. Across Europe, governments and the auto industry are rethinking how to respond to changing consumer realities. In the UK, for example, there is a proposal to let drivers with automatic-only licences switch to manual cars after just one hour of training, as reported earlier. These changes reflect a wider recognition that the old ways of accessing cars are under pressure.
For Spain, the numbers are clear. Four years of rising car unaffordability point to a deeper problem that goes beyond temporary setbacks. The surge in used car sales, the rise of budget brands, and the drop in young drivers all show a market in flux. Unless wages catch up and entry costs come down, car ownership will become even more exclusive. The Spanish government and industry leaders will have to decide how to respond, or risk leaving millions without access to a car.
