How to navigate the car market in Denmark: What to look for, what to avoid, and what to keep in mind.
Denmark has its own processes and regulations for buying a car, but what are they, and where do you start? Whether you’re considering leasing, buying second-hand, or going for a brand-new model, here’s what you need to know to get on the road and explore Denmark.
Buying a Car in General (The Basics)
Let’s start with the general rules when it comes to buying a car. To register a vehicle, you need to have a CPR number, which is the number written on your yellow card. For that, you must be living in Denmark and have a Danish Address. Once you have the CPR number, you will be able to make an account for your MitID. If you need to learn more about the basics of living in Denmark, I highly recommend reading the other articles regarding it before jumping into this one.
Before registering your car, it is compulsory to have liability insurance (ansvarsforsikring). For more information regarding that, it is encouraged to look at the website [1]. The punishment for not insuring your car is severe. “If you do not take out liability insurance, you will be charged a daily fee of DKK 250 (2025) by the Danish Motor Insurers’ Bureau (DFIM) for each day the motor vehicle is uninsured. If you are stopped by the police and do not have valid liability insurance, you will receive a fine of DKK 1,000 (2025).
There are also rules about the inspections for the old cars. If you are buying a new car, there is nothing to worry about, as the first inspection is needed after 4 years. However, if you are buying a second-hand car, depending on how old the car is, it must have a valid inspection before getting into traffic; therefore, it is necessary to check whether it is due for inspection or not.
There is also a vehicle registration tax needed to pay the first time you register a car, with the amount and percentage we refer to on the website. [2] The important thing to refer to on this website is that, depending on the price of the car, the tax increases from 25% to 85% and to 150%; however, for zero-emission cars (electric cars) and low-emission cars (hybrid cars), there are deductions to these tax values.
Buying a New Car
If you are buying a new car, the process is going to be done through a dealer. So they will handle the paperwork and registration for you, which means lots of the things I have talked about before will be done by the professionals. However, there is a downside to this lack of paperwork. As it’s going to be a brand-new car, you need to pay a very high upfront cost when taxes are included.
Buying a Used Car
If you want to buy a used car, there are a bunch of platforms to check and find, such as Bilbasen, Autocom, DBA, and Facebook Marketplace.. Before buying, do not forget to check the important things that might cause you to pay extra afterwards. The most important thing to check is whether the car has a debt or not, which can be checked via Bilbogen. This can include things like outstanding parking fines.. Furthermore, seeing the car’s service history can also tell you a lot about the car’s past. Be careful to check the tires, rust, and hidden things that might cause trouble afterwards. Always make a test drive and consider having a mechanic check it as well.
To tell us more about the process of buying a second-hand car in Denmark, we spoke to someone who recently went through the process. Lucas Bukata explained that the process of buying a second-hand car in Denmark is fairly straightforward: conducting research on the brand and seller, finding the car through a dealer, arranging financing with a bank, and finalizing the process via online registration with SKAT.
He was happy that the financing was arranged by the second-hand dealership, which made the process more straightforward. Lucas made a down payment of 20% with a 5-year plan, making the price similar to a lease deal. Furthermore, their dealer suggested an insurance company that fit their needs, easing the process even further.
Lucas personally found that looking for second-hand cars through reputable car dealers rather than private listings to be much safer and reliable. He also explained that he found the upfront payment of a new vehicle daunting, so the lower costs of second-hand cars were much more appealing.
Lucas ended up purchasing a hybrid car, but all-electric cars are an increasingly popular choice. Thamizharasi Nagappan decided to buy a second-hand electric car instead of a new one due to higher tax rates on new vehicles in Denmark. Furthermore, she also told us that the Danish Government encourages people to buy electric cars, as they are more environmentally friendly, by setting lower annual taxes for them.
But it isn’t all easy and straightforward. Thamizharasi also explained that although most of the dealers were helpful and provided good information about the car, the dealer she purchased from was unprofessional, and she had some issues. Due to the speed of the purchase, she didn’t pay much attention to all the details of the car. According to Thamizharasi, there was a hidden scratch that was covered up by a paint job, which became visible after rain. She advises everybody to double-check every corner of the second-hand car before buying it.
(Mini) Leasing a Car
The cost and responsibility of purchasing a car isn’t necessarily for everybody, so let’s change our perspective and discuss the pros and cons of leasing a car in Denmark as well. But before we begin, it’s important to differentiate between leasing and mini-leasing.
Leasing can be thought of as a long-term ownership plan, where you pay little or no money up front. You then make monthly payments until you eventually own the car. To do this, you need a good credit score- something hard to come by for internationals who have just arrived in Denmark.
Mini Leasing, however, is a long-term rental, where you never own the car. Think of it more like a rental, but for several months at a time. The monthly fee already includes insurance and taxes, which makes it attractive and simple. This option is therefore good for new internationals in Denmark, who just need a car and don’t mind about the lack of outright ownership.
To understand more, we spoke to Rasna Kaur Mistry, who chose to lease a car.
Rasna, a non-EU citizen from the UK living in Odense, shared her experience with buying a car in Denmark. She explained that public transport in Odense, especially on weekends, can be infrequent, making life with small children difficult. She felt a need for flexibility and knew it could be a lifesaver for activities like children’s football tournaments, exploring the island, and integrating into society more.
Therefore, she needed to buy a vehicle; however, she explained that for her, buying a car, even secondhand, was too expensive, costing from DKK50,000 to DKK150,000 for something that could be used very well. This wasn’t an affordable option. Despite having decent jobs with reasonable pay, the bank didn’t give them a loan to buy it as they are non-EU citizens, hence don’t have local credit history, so they chose the option to rent cars at approximately DKK 6,000 monthly through a “Mini lease” option. This was a good short-term solution, although Rasna said she could find it frustrating, as at this price, they could’ve bought it up-front if they were saving instead of renting.
Things to Check Before Owning a Car
Buying a car in Denmark isn’t just about choosing between new and used, or exploring leasing options. Before you buy, there are also several legal, financial, and practical checks everybody should keep in mind, and skipping these might lead to unexpected costs, as some of the people we interviewed also discovered.
In terms of legal and registration requirements, don’t forget that Liability Insurance is mandatory before registration, and cars over 4 years need a valid inspection; otherwise, the fines in Denmark can be heavy. When it comes down to money, don’t forget that in Denmark, depending on the car and its age, there are also potential tax implications or deductions, so it’s good to keep your taxes in mind. If you are considering fuel-powered or electric vehicles, it would also be nice to see the price difference between fuel and EV charging.
A common complaint in cities such as Copenhagen can be the lack of affordable parking places, so it’s also important to check with your building or local kommune what options might be available to you.
Technical details, service history, mileage, and any visible rust are important, and do not forget to test drive and do a mechanic inspection. Of course, lastly, practical things like your lifestyle and family needs, as well as their resale value, are also handy to keep in mind.
Some of the people we spoke to can teach us a few things to keep in mind throughout the process. Rasna’s case shows that even with stable jobs, banks may deny loans, so plan savings or leasing. Thamil reminds buyers not to rush: a hidden scratch only showed after rain, “Lucas advises to be cautious of private sellers in DBA and Facebook Marketplace, and think twice when the deal is too good to be true. These checks may take extra time, but they can end up saving you headaches and unexpected expenses.
[2]: https://motorst.dk/en-us/individuals/vehicle-taxes/registration-tax/registration-tax-and-rates
