Car Gazing in Portugal


Published 05 February 2022 by Mike

It Must Be Hereditary

We are not “car guys”, but we know a few.  There’s our friend Bob, who has a barn full of old Pontiacs in various stages of disintegration or restoration. Or our friend Gene, who usually has an old Ford Bronco or a Jeep in his garage being upfitted.  Then there’s our friend Todd, who shows up to every social event driving a different vehicle.  He always has an interesting story about the challenges he faced in getting that car or truck running.  

But while we’re not certified gearheads, we do have some car lovers in our family tree.

Mike’s dad, for example, loved to go car shopping.  He would visit every lot in a 50 mile radius of our small Eastern Kentucky town, looking for the best deal. Once we even took a test drive while on a vacation trip. I think it was a big, late 1960s Oldsmobile.  Four doors, power steering.  It even had air conditioning.   

Image source: car.info

Mary’s dad owned a couple hot cars in his day. One was a 1969 Chevelle SS 396 and the other was a Camaro Rally Sport.

He sold both of them before Mary got her license, which is probably a good thing. She said the Chevelle was “crazy fast” when her older brother drove it. She got to drive the Camaro once while she had her learner’s permit.  Nearly wrecked it. 

The cars we’ve owned have been a lot tamer.  When we were first starting out, we had multiple Volkswagens – an old Karmann Ghia and four or five Volkswagen bugs.  All were pre-1965, with six volt electrical systems and no heat to speak of.  We gradually traded up – first to a Datsun B-210 (that was before they became “Nissan”), then a Ford Tempo.  We had an MGB convertible for a while, and a Volvo that’s still in the family.  (Mike got it broken in at 167,000 miles and then gave it to our son who still owns it.)  We’ve had two pickup trucks, a minivan and a Honda CRV, which might be the most generic car in America. 

Over the years, Mike spent a lot of time under the hoods.  Not restoring, just keeping them running, though he mostly stopped after fuel injection became standard equipment and we made enough money to afford a mechanic. 

We don’t own a car now and have no plans to buy one. But that doesn’t stop us from looking. 

The Cars We’ve Seen

In Porto We lived around the corner from the CPAA – the Clube Português de Automóveis Antigos – the Portuguese Antique Auto Club.  There were often interesting, well-maintained old cars parked on the street outside or in the surrounding neighborhood. 

In Parede, where we live now, we admire cars as we walk around the neighborhood. Many are familiar European brands that are common in the US: BMW, Mercedes, Volvo, Audi, Volkswagen. And of course, the Japanese brands are well represented: Toyota, Mazda, Honda, and Kia. There are other brands that are rare or nonexistent in America:  Fiat, Renault, Peugeot, Citroën, Dacia, and Skoda.  We’ve seen a number of small Fords and one Chevrolet – an old Aveo.  

There’s also an old Dodge minivan in the neighborhood. It looks like it has seen better days and has a sticker on the back showing it was purchased from a dealer in New Jersey.  Somebody must have loved that van a lot to bring it over here, because the import fees and taxes can add up to thousands of dollars.  

One thing we’ve noticed is that most of the major brands sell different models than we ever saw in the US.   There are compact Mercedes coupes and tiny BMWs. We’ve also seen several boxy BMW minivans.  The cars come with different trim packages, too.  For example, it’s very common here to see a BMW with cloth seats. 

SMART cars are plentiful, as are other compact cars.  With gas costing around $8 per gallon, owning a small car makes a lot of sense.  Many of the smaller models have 3 cylinder engines.

But there are a surprising number of larger vehicles. We see Volvo SUVs, Mercedes and BMW station wagons, and four-door Porche sedans. (And who knew that Porche makes an SUV?)

One type of vehicle we don’t see here is a pickup truck.  We’ve seen maybe two or three in seven months.  Most companies that need a small truck either use compact panel vans or a mid-sized truck with a shallow bed that has hinged sides.

Then there’s the old Aixam Scouty we’ve seen down the block.  (It doesn’t look as nice as this picture, but this is a better view.)

We thought this was a miniature pickup truck, but after further investigation have learned that it is actually a two-seater convertible.  Aixam is a French manufacturer of very small vehicles.  In some countries they are called “quadricycles” because of their weight and small size.  They are also sometimes considered “license-free” cars that can be driven without a regular driver’s license.  These vehicles are limited to two seats. The car’s empty weight can not exceed 425kg (937 lbs.) and engine power is limited to 6kW (8hp).  Top speed might be 45 miles per hour. Going downhill. With a tailwind.

What does it cost to own a car in Portugal?

We were curious about the prices of cars and so we did some research on the top 10 best selling cars in Portugal in 2021.  Here’s the list, along with some prices for these cars on the used market. 

Sales RankMake & ModelNumber Sold (2021)Typical Price Used (2022)
1Renault Clio8,424€19,995
2Peugeot 2008€7,742€22,900
3Renault Captur6,955€25,230
4Fiat 5006,379€15,990
5Peugeot 2085,537€22,500
6Mercedes A Class4,615€41,990 – Model A180
7Renault Mégane4,452€24,990
8Citroën C34,098€17,490
9BMW 1 Series3,829€39,990 (“overpriced”)
10Dacia Sandero3,765€13,800

Sales figures from Focus2Move.com, Used car prices from Autto.pt and Ooyyo.com

So far we have not been able to find new car prices online and are not sure why. 

There are two kinds of tax that car owners must pay:

The first is the Imposto Sobre Veículos or ISV.  This is a vehicle tax that is paid once when the vehicle gets a Portuguese license plate.  The tax amount is calculated based on engine displacement and CO2 emissions.  You pay more for cars with bigger engines or ones that emit more pollution

The other tax is the annual Imposto Único de Circulação or IUC (Circulation Unique Tax).  It is also calculated based on engine size and CO2 emissions.

We used two online simulators to get an idea of how much tax you’d pay here.  We estimated the tax on a new car, purchased in Portugal in 2021, with the smallest available diesel engine.  In that scenario, the owner would pay €3,031 in one-time ISV and €108 for this year in IUC.

Another thing that’s interesting to us is how the cars are licensed and insured.  License plates are generally issued once, and remain with the car even if it changes hands several times.  

New-style Portuguese license plate – issued from March, 2020
Image source: Wikipedia

Insurance is also tied to the car, not the driver.  Basic “third party insurance” – similar to liability coverage in the US – can cost as little as €150 / year.  It pays for damages and injury to others, but not for you or your vehicle.  Additional coverage adds cost. “Fully comprehensive” coverage is advertised for around €350 / year. 

Electric vehicles are increasingly common

We frequently see electric vehicles of all sizes on the street now.  Reuters reported recently that battery-electric vehicle sales in Europe grew by 63% in 2021, to 878,500 cars.  The Portuguese government offers a €3,000 incentive to individuals who purchase battery-electric vehicles.  In addition, the value-added tax (VAT) of 23% can be fully deducted for most electric vehicles.  

Portugal has also built an extensive infrastructure to support these cars.  The “Mobi.E Network”, or National Electric Mobility Network, <>  has over 2,300 charging points around the country, with more than 550 of them being fast or ultra-fast chargers.  The network is one of the first to be fully interoperable, meaning that any owner can charge any vehicle at any charging point.  

Conclusion 

While there are days when walking or taking the train or bus is inconvenient, we have found that looking at cars is more fun than owning cars. It’s definitely cheaper!

Most of the vehicles we featured here are pretty mainstream, some tending toward upscale. But if you really want to go all out, you could put in an order for one of these babies that we saw on display in Cascais last week.

That’s a Mercedes AMG-GT. It has a 390kW (523hp) engine. The paint is a stealth fighter grey. As far as we could tell, there are only two downsides to this car:

First, it has an automatic transmission. This is a car that demands to be shifted!

Second, at €233,377, it’s just slightly outside our budget. But if any of our car guy friends want to go in with us, we could do a time share type of deal. You’ll just have to come to Portugal to drive it. (And we have an empty indoor parking space, too.)


What was the best car you ever owned? Tell us all about it in the comments below or via the Contact form.

Happy motoring / feliz automobilismo

Mary and Mike

The Cook and The Writer


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15 thoughts on “Car Gazing in Portugal”

  1. Hi Mike & Mary,
    Once again, loved reading your blog for the week! This one brought back a few memories for me.

    My dad was a “car guy” and although he never owned any really impressive cars he would always stop by car dealerships to get the annual “catalog/brochure” of the new cars for the year. He would read and re-read all the info in those brochures noting the body style changes, etc. I think I picked up an interest of cars from my dad – because I’ve also always enjoyed noticing changes made to cars body styles, etc. from year to year… just like my dad.

    Another memory is of trading cars with a friend for one summer just for fun. Mine was a Mazda RX7 and the trade was for a Peugeot. I remember getting so many questions about what kind of car I was driving….but I really didn’t know a lot about the car, other than how to drive it. Both of those cars were really fun to drive though! Luckily there was never any incidents with either vehicle during that summer….but as I think back it could have really gotten complicated with insurance, etc., had there been (oh the bliss of ignorance…and the adventures of youth)! Ha!

    Lastly, I remember when you purchased the new, white Volvo (what an impressive car). We were living on Peregrine Drive at the time and our little Brandon was so excited to go over to see Mike’s new car! I remember him rushing on his bicycle into your driveway and coming so dangerously close to crashing into it…..I think my heart skipped more than a few beats at the time and luckily he managed to somehow steer clear! I’m so happy to hear that Will still has the Volvo – that’s awesome!

    It sure is fun reading your blogs – keep them coming! 🙂
    All the best, Sheryl

    Reply
  2. I would never consider myself a “car person” in any way, shape or form. Having said that, there are some cars I have owned that hold fond remembrances. My current car, a 2009 honda fit, is my most perfect vehicle in the way it transforms to fit stuff into it as well as its stellar maintenance record. My first car, an indeterminate year, oldsmobile super 88, black with red interior has my heart. My Dad purchased for me when I was a senior in high school because he wanted a “lot of metal around me when I wrecked it”; which I did often but not seriously. The first car I bought on my own was a 68 red impala; followed by a lot of beaters with frequent fraught experiences of tows on a chain by friends when they broke down. The most memorable of those was a dismal duster and a couple of “fix or repair daily” fords. Special mention goes to a Chevy van that I outfitted with a futon and a military field kitchen which took me on a magical trip one summer to experience hot springs from Indiana to the west coast. And then there was a trip on Route 66 in a VW Westfalia which is much too complicated to go into here. Shall we just say that the trips where everything goes well are not necessarily the most treasured. So love having these posts to live your dream with you.

    Reply
    • Hi Gay,
      I’m so delighted by your comments. I do think you qualify as a “car person” because your cars have a special place in your heart. When I was a freshman in high school I lusted after a red ’68 Impala that one of the seniors owned. And at some future time, when we find ourselves in the same place with a bottle of good wine, I want to hear the stories about the road trips in the Chevy van and the Westfalia. We’re wired to remember the challenging trips. No good tale ever began with “well, everything went as planned…”
      From one old hippie to another…
      Mike

      Reply
  3. Hi Mike. I don’t remember the car dealers in east Kentucky but I do remember going car shopping with Dad in Panama City. At one, Dad was negotiating the deal. The salesman was feebly attempting some male bonding or something and was cursing like a sailor. Dad just seemed intent on the deal and didn’t make anything of it. When they finally agreed on a price and we’re signing the papers, the salesman asked for ID. Dad fished around in his wallet and handed over a card. The salesman looked at it and seemed stricken. He stopped cussing and began apologizing. “I am so so sorry, Reverend Johnston….”.
    Dad told me later that was the only card in his wallet labeling him as a pastor and he so enjoyed using it that day.
    Fun memory.

    I think my best car is my current Saturn. I bought it new in ’07 and have put almost a quarter of a million miles on it.

    When I was in Korea years ago, I noticed the same thing about the absence of pickup trucks. They had small utility trucks but what struck me was all the deliveries done by piling goods on the backs of motor cycles.

    Reply
    • Hi Thom,
      Thanks for joining the conversation. That’s a great story about Dad and the car salesman. I can just imagine the grin Dad had on his face when he told you how much he enjoyed playing the pastor card. And quite unlike our father, who liked to trade cars frequently, you and I seem to have the “drive it til the wheels fall off” gene. Your ’07 Saturn and my ’02 Volvo are both examples. I saw similar overloading of motorcycles when I visited India, but my favorite memory is of the scooter that zipped past one day with the passenger holding a sheep between himself and the driver.
      This is why we travel!
      Mike

      Reply
  4. Nice post, Mike and so true about how many different types of cars there are here in Portugal. On our neighborhood walks in Parede & Estoril, we (actually, Paul) has noticed the different types of cars – most we have never heard of or seen in the U.S. One day, as we were walking up our street, a little boy (maybe 5 years old) and his grandmother were just ahead of us. The boy stopped at every single car parked along the sidewalk and by looking at the vehicle emblem, he declared the brand name of each car in a loud little-boy Portuguese voice. He was so excited! Paul of course, being a car enthusiast, joined in and together they walked by each car and named them together. It was a fun way to learn the different brands.

    Reply
    • Paul & Carol,
      Thanks for your comments. I should have remembered that I had a new “car guy” friend here in Portugual. If you see that 5 year old again, send him my way. I could use a tutorial on some of the badges.
      Mike

      Reply
  5. Saturday has become my favorite day of the week!! I SO look forward to your weekly blog! Thank You, Thank You!

    Reply
    • Hi Joy,
      Thanks so much for your note of encouragement. Mary saw it first and told me that “Joy has set the bar pretty high for us!” That’s OK. We’ll keep trying to hit a high mark.
      Stay safe and well,
      Mike

      Reply
    • Hi Nan,
      Thanks for your comment. Yes, this was a fun article to write. It’s been even more fun to read the comments. It seems to have resonated with a lot of our readers.
      Have a great week!
      Mike

      Reply
  6. This was awesome thank you! We have a car that we love but afraid to import because of all the horror stories we’ve heard! If you hear of a company in Lisbon that also gets it up to EU environmental standards, let us know!

    Reply
    • Hi Ludmila,
      Practically every message I’ve seen on the different expat forums about importing cars from the US had one of two messages. It either said “Don’t do it!” or “Be prepared to pay a premium for import duties, taxes, and upfits.” (Some said both.) If you’re not already a member of the Facebook group “Americans&FriendsPT”, I’d suggest joining. That’s one of the most reliable sources of information we found as we were planning our move, and we still tap into it. There are probably multiple people there who have dealt with the import / upfit challenge.

      If I run across a reputable company, I’ll let you know.
      All the best,
      Mike

      Reply
  7. Hi Mike and Mary, thank you so much formosura an interesting article. We were just in Portugal and noticed many different brands of cars we did not recognize. We will be making our move to Lisboa in April and also plan to leave the driving to someone else.

    I do have to say the best car we have ever owned is our current Audi Etron. It is a joy to drive and never having to stop and buy gasoline is fantastic. If we ever purchase another car, we will definitely buy electric.

    Thank you again for such a great article.

    Reply
    • Hi Gayna,
      Thanks for your comment. If you’re coming over in April, then it’s crunch time for you. We hope you are able to manage all the final details and maintain a reasonable stress level. Our last two months in the states were a blur of activity, but it all worked out. I’m sure yours will, too.
      Best wishes for a successful move!
      Mike

      Reply

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