Buying a Car in Denmark: What you Need to Know

Is buying a car in Denmark an easy and cost-effective thing to do?  When moving to Denmark from another country, you may experience a bit of culture shock when it comes to buying a car in Denmark. Though the general process of finding, buying, leasing and/or renting a car may be very similar to the country you lived before, the prices might surprise you. Denmark is well-known for its high registration tax, yet there are still people who buy cars every day.

Here’s our story with renting and buying cars in Denmark!

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Importing a Car to Denmark

When we found out that we were moving to Denmark, we sold our two cars and our camper caravan in the USA. The cost of shipping a car to Denmark and then paying taxes on it were more than the cars would have been worth. That was a reason for us to start fresh in Denmark.

Coming from other EU countries, you will still need to pay a tax on importing your car from another country. The tax authorities will be the one to determine what the tax will be for your car, so you may want to look into that before bringing it. It might be better to buy a car in Denmark than to pay the tax on the one you already have. See www.skat.dk for more details.

Disclaimer: I am not a financial advisor, tax advisor or car seller. I am only sharing my experience with you, so I would suggest asking experts for more precise numbers and advice!

Renting a Car in Denmark

For the first two months of living in Denmark, we decided to rent a car on a mini-lease from a car rental company in Sønderborg. This was close by where we were staying at my mother-in-law’s house. Many car rental companies in other parts of Denmark: Copenhagen, Aalborg, Aarhus, Billund, etc. have mini-lease programs. We thought it was a better option than buying. Cars can easily be rented at the Billund and Copenhagen airports if you are need of one right when you arrive in Denmark from abroad.

There was no sense in making a big purchase before we knew that we had made the right decision in moving to Denmark. We loved how flexible the mini-lease was. We didn’t have to sign a 3-year lease for a newer car, and we didn’t have to spend a lot of money. The mini-lease fit our undecided minds much better.

Luckily for us, it only took us two months on the mini-lease to realize that we were going to be in Denmark for a while. Also, the car we rented from AVIS was a Toyota Yaris. It would have been perfect for a smaller family. However, we planned to take frequent trips to our summer house and to visit my mother-in-law (both places that were a 3-hour drive from our new home in Denmark). A small car like the Yaris did not have enough room for our stuff. We were ready to make the switch to buying our first car in Denmark.

Things to Consider Before Buying a Car in Denmark

1. How much can I afford to spend each month on a car loan?
2. Will I be living in Denmark long enough for a lease?
3. How will I use the car> How many miles/kilometers will I be putting on the car each week?
4. How much space do I need for daily tasks and for trips?
5. Can I afford paying a large tax at the time of purchase and an additional tax twice a year?

Buying a Used Car from a Dealership in Denmark

Since we had just spent a lot of money to move to Denmark, we weren’t in a position to make another big purchase. Especially since our apartment was so small that half of our stuff wasn’t able to fit. We had to put most of it in storage. It was for these reasons that we knew we would be buying a house in Denmark before a new car.

Read all about how life was like for me after the first 3 months of living abroad.

The first place that we started looking for a used car was online. Bilbasen.dk was a great website that allowed us to put in the requirements we needed for a car that would fit our family of four. Having a car to pull a camper caravan was also something we needed. Though we didn’t have a camper at that point, we knew that it was just a matter of time (and money) before we would get one. We wanted to be prepared with the right car.

Also, I was used to driving an automatic car in the USA. Though I had learned how to drive a manual car when I was a teenager, I didn’t feel confident (or interested) with one in Denmark. Luckily for me, automatic cars were starting to become more popular in Denmark, so we had a few different options for automatic cars to choose from.

Finding the Right Car Online with Bilbasen.dk

The first car that met our requirements was in Silkeborg. Silkeborg was a great place to visit if you live in Midtjylland and are looking for a car. They have so many dealerships and lots of variety. After checking out the first car, we just decided to see what the other dealerships had to offer. This gave us a pretty good idea of the types of cars that you could buy in Denmark.

Since we didn’t find what we were looking for in Silkeborg, we decided to try out one of the other cars from the search results. This one was in Aalborg, which wasn’t too far from where we lived in Midtjylland. The guy at the dealership was very nice, and we quickly felt that the 2012 Opal Insignia was the right car for us.

We had both bought used cars in the past when we were younger, so we were used to the experience. Buying a used car seemed like the best option for us.

Side Note to buying a Used Car in Denmark

If you want to buy a used car from a person instead of a dealership, you will want to make sure that the car is safe without any major issues from its past. You can find out more at TjekBil where you can enter in the car’s vehicle identification number to get past car reports. Otherwise, you will want to have it inspected. You may want to check with the Danish Transit Authority on that one, since I can’t say for sure. I have never bought a car from a private owner!

Also, don’t pay cash for a car. The Danes are well-known for using electric payments for almost everything. It is much safer to use a Danish bank for purchasing something as expensive as a car!

Watch the Video of Buying a Car in Denmark on my YouTube Channel, My New Danish Life!

Buying a New Car in Denmark

Fast forward to almost 5 years in Denmark, and we have just decided to buy a new car. We love our Insignia, but for me, I am getting really tired at how low the car is to the ground and feeling bad that it is a diesel. I want a more energy and eco-friendly car. This led us to doing another search online.

When we lived in the USA, my husband had a GMC Arcadia, which was a very large SUV. We loved the space in that car, but it would be way too big for our lives in Denmark. We still liked the idea of having an SUV, so we decided to search for a hybrid SUV that would check off more boxes for our perfect car in Denmark.

Read all about how it was Preparing to Move from the USA and Getting to Denmark in this post!

After we narrowed it down to two different cars: Mercedes and Toyota, we decided to go to a few dealerships to check out the cars in person. The Mercedes was nice, but the trunk was kind of weird. It didn’t have as much space as we were hoping, so that is one reason we decided to go with Toyota. The Toyota was also very comfortable, and we liked the leg room in the back. Our boys were now 5 years older than when we bought our Insignia, so we needed all the leg room we could get.

Dude, where’s my car?

The funny thing about buying a new car is that we had to order it.

It was December 2020 when we finally signed on the dotted line to buy our car. Since it was going to be a new 2021 car, we had to wait for it to be built. It would be nearly 4 months of waiting before the car would be ready for us to take it home. As an American, this was something I had never experienced before!

This process of ordering the car is more environmentally-friendly. They don’t have unneeded cars just sitting around. That also means that we would have to wait a long time to see it in person. I have to say that being in lockdown has made it more bearable to wait, since we couldn’t really go anywhere anyway. This car will be coming in time for camping season to start, so we can wait!

Leasing a New Car in Denmark

To be completely honest, we considered leasing a car at first. We liked the idea that we could have a new car with roughly the same payments. It was also nice that the maintenance fees would be taken care of with a lease, so we didn’t have to worry about having money in the bank for unexpected car expenses.

Are you looking for an apartment in Denmark? Read about our experiences with our First Apartment in Denmark.

Still, we didn’t like the fact that we would be paying a large amount for a car that we wouldn’t be able to keep in the long run. We normally owned our cars for more than 3 years, so we liked the idea of having a day in the future when we could have a car without a car payment. A new car seemed to be a cheaper choice in the long run over a leased car.

Insurance for Buying a Car in Denmark

How do you get car insurance in Denmark? Many banks will have a collaboration with insurance companies. This will allow you to get a discount on the package when financing your car loan and offering car insurance. You will want to check with your bank advisor if this type of package exists at your bank. If not, you will want to find your own insurance company.

Proof of insurance is needed before you can take the car home. We have the bank package for insurance, so it was a pretty easy process for us. We pay once a year for our insurance, but this might vary depending on the program.

Taxes for Buying a Car in Denmark

I’m not going to lie. Taxes on cars in Denmark are CRAZY!! Coming from a country like the USA, it isn’t that expensive to buy a new car. However in Denmark, the taxes on a car can be the reason why many people choose not to buy a car at all.

When you buy your new car from the dealership, you will be required to pay a Registration Tax (registreringsafgift) that is included with the total price. If you are worried about this added tax amount, don’t be. This is already calculated in the price that you see on the sticker of the car in the dealership. You shouldn’t need to do any math for that.

For used cars, there is no registration tax. One thing that may not be in the sticker price is the delivery fee. You will want to ask the car seller about this fee to have a better idea of the final cost. Delivery fees can include the cleaning of the car before you take it home and other miscellaneous charges.

Is life in Denmark stressing you out? Here is my advice for How Not to Lose Your Shi* When Living Abroad!

Hold on to your hats…and wallets for this!

The scary part about the taxes is that you can pay anywhere from 105% to 150% of the value of the car in taxes. This makes buying a new car a very expensive decision. However, the taxes that you pay on electric and/or hybrid cars may be different than this number because of their eco-friendly status. Check with the Skat.dk website to find more specific details. With the great public transportation that Denmark has, it isn’t a wonder that so many people put off buying a new car until they either have a big need for one or they are financially ready for one.

There is also a Green Tax that people will be expected to pay twice a year after purchasing their car. The amount you pay depends on the type of car you own. The more eco-friendly your car is, the less of this type of tax you will pay. Denmark is trying to move away from gasoline/diesel cars in the future. They have a goal of not selling any new cars that are run by gasoline or diesel starting in the year 2030.

For taxes, visit www.skat.dk to get the most up-to-date information before you buy your car!

Steps to Buying a Car in Denmark

• 1: Find the car you want. (One that is in your price range.)
• 2: Tell them at the dealership that you want to buy it. They will want your name, address, telephone number and CPR number.
• 3: Call your bank advisor and tell them about the car details and price. The bank will contact the dealership to get the proper information and paperwork.
• 4: You can get a loan with your bank, and the bank sends the money to the dealership to pay for the car. Of course, this means that you will be paying the bank every month for your car loan*. You will also pay the registration taxes (for new cars) at this time.
• 5: Arrange with the dealership to pick up your car. If you don’t have insurance with your bank, you will need to prove that you have car insurance before taking the car.

*In Denmark, you can only get a car loan for a certain amount of years depending on the age of the car. This would be something to ask your bank advisor about. You may even want to have this conversation before talking to dealerships so that you know what you can afford.

Things to do After Buying a Car in Denmark

You will be expected to have your car inspected every 2 to 4 years depending on how old the car is. An authorized center can give your car a “synsrapport” to record some data and tell you the condition of the car. You can read more about this report at Danish Motorist Association. You will also want to consider buying a set of winter tires.

I know that the odds of it snowing a lot in Denmark is actually pretty slim, but there may be some icy days. Winter tires are helpful on the slick roads! Also, if you are in need of different items for your new car, you might want to check out the stores called THansen and Biltema. Here you can find a variety of items for car maintenance, cleaning and accessorizing. 

Are you interested in finding great places to visit in Denmark? See all the places I recommend HERE!

Final Thoughts on Car Buying in Denmark

As you can see, it can be very expensive to buy a car in Denmark. However, if you are looking for a smaller, environmentally-friendly vehicle, you might be able to buy a car in Denmark that is a good value. Overall, the experience of buying a car in Denmark can be very exciting and can help you feel that you are starting to settle in your new home. I know that we are very excited for our new car! We wish you luck with your journey in finding the best car option for you!

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