Buying a new car on a lousy salary in Spain: €30,000 on average

The Corolla costs €30,000 in Spain and $24,000 in the US: the gap nobody explains

With an average net salary of barely €1,800 a month, buying a new car has become a pipe dream for most Spaniards. The Toyota Corolla, one of the best-selling models, starts at €30,000 in the Spanish market, while in the United States it sells for $24,000 (around €22,000 at current exchange rates). The gap, over 25%, cannot be explained by taxes and import costs alone.

The paradox of second-hand leasing is presented as the most sensible option for those who need a reliable car without taking on a mortgage-sized debt. Buying a three-year-old car ex-lease fleet can save you up to half the price of a new one. But the used-car market isn't what it used to be: prices have soared, and many cars have been run hard through intensive rental use.

The electric car option runs into infrastructure reality. Spending €40,000 on an electric Ford Capri can be a disaster if you live in a village with the nearest charging point 60 kilometres away. However, anyone with their own garage can install solar panels and batteries, cutting the cost of electricity to almost zero. A solution only available to a minority who own detached homes.

Credit remains the most common route, but at current interest rates, financing a car over 8 years is a millstone. The most pragmatic advice is to increase your income — change jobs or learn some mechanics to buy wisely — or simply give up on the car and go for a motorbike, as the bluntest analysis suggests. Because with lousy salaries, the problem isn't the price of the car: buying one is outright financial suicide.