What does it cost to own a car in Norway?

Many people only look at the price tag when buying a car, but what it costs to own a car is about far more than the purchase price itself. The running expenses for insurance, tax, fuel, tyres, servicing and not least depreciation add up to large sums every single year. In this article you get a realistic overview of the actual annual costs of car ownership in Norway.

Table of contents

• The fixed costs
• The variable costs
• Depreciation – the hidden major cost
• Example of total annual costs
• How to keep costs down

The fixed costs

Fixed costs apply no matter how much you drive. The most important are insurance and the traffic insurance tax (formerly known as the annual road tax), which is now collected continuously through your insurance.

• Insurance: The premium depends on the car’s value, your age, where you live and mileage. Whether you choose third-party, partial or fully comprehensive cover strongly affects the price. Read more about the differences in our overview of comprehensive vs third-party insurance.
• Traffic insurance tax: A state tax paid together with the insurance. Electric cars have historically had a lower rate than fossil-fuel cars.
• Periodic vehicle inspection (EU-kontroll): The car must pass periodic roadworthiness testing at regular intervals. The test itself costs a few hundred kroner, but any faults must be fixed. See what gets checked in the article on the periodic vehicle inspection .

The variable costs

Variable costs rise with mileage. Here fuel or electricity is the biggest item for most people.

The fuel type matters a lot for what you pay. The differences between petrol, diesel and electric are described in the article on fuel types . You can also lower your expenses considerably by learning to reduce fuel consumption .

Tyres are an item many forget. You need both summer and winter tyres, and the wear depends on driving style and tyre type. Regular servicing and maintenance prevents expensive repairs – see our tips on car maintenance .

Depreciation – the hidden major cost

The cost few people account for is depreciation. A new car loses the most value in its first years. For many people this is in fact the single largest cost of car ownership, even though it does not show up on your bank statement month by month.

1. New cars lose value quickly right after purchase.
2. Depreciation levels off after a few years.
3. Older, cheaper cars have lower depreciation in kroner, but can have higher repair costs.

This is an important reason to think carefully before your first car purchase. We have a dedicated guide to choosing your first car that addresses exactly this trade-off.

Example of total annual costs

The sum of all the items above can quickly become significant. A simple way to think about it is to add up fixed costs, variable costs and depreciation. For a holistic review of economy and car ownership, see the article on economy and car ownership .

Remember also the one-off costs before you even own a car: what a class B driving licence costs in total , as well as what the practical test costs and what the theory test costs .

How to keep costs down

• Choose a car with low consumption and a low insurance premium.
• Drive smoothly and anticipate to save fuel and tyres.
• Follow the service intervals to avoid expensive repairs.
• Compare insurance offers annually.
• Consider depreciation before buying a brand-new car.

Understanding the full picture makes you a more aware car owner. If you are still getting your licence, you can practise completely free with our free theory test . Practise regularly in the Eteo app, so you are well prepared for the class B theory test.