Car manufacturers "are continuing to rip off Irish buyers" by recommending pre-tax prices up to 10 per cent higher than in other European markets, according to Mr Proinsias De Rossa MEP of Labour.
Mr De Rossa was responding to a European Commission survey of car prices across the EU.
The survey reveals that on average, pre-tax prices recommended to Irish car buyers are 10 per cent higher than the lowest prices recommended in other EU countries.
For some car models, the price difference is even higher. The recommended pre-tax price for a Nissan Micra is €8,900 in Ireland compared to €7,300 in Greece; a Skoda Octavia is €11,000 in Ireland but €8,800 in Finland; a Toyota Avensis costs €14,500 in Ireland and €11,700 in Finland, and a Honda Accord costs €17,400 in Ireland compared to €13,500 in Finland.
Out of 75 models surveyed, Ireland had the lowest recommended pre-tax price for only six models.
Mr de Rossa said: "Taking recommended prices across Europe as a whole into account, it is clear that manufacturers engage in pricing policies that work to the disadvantage of buyers all across Europe, including here in Ireland."
He disputed claims by car manufacturers that pre-tax prices in countries such as Germany, Finland and Greece were low because of their high car taxes and that they lowered their prices to make cars affordable in these markets.
He said that other countries such as Spain, where taxes were not as high, recommended roughly similar prices: an Opel Astra costs €10,300 in Greece but €10,100 in Spain.
Mr De Rossa said car manufacturers were failing to pass on the benefits of the abolition of trade borders to buyers.
"It is for this reason that new EU rules, leading to lower prices, will come into effect from this autumn," said Mr De Rossa.
The new EU rules will mean car dealers will no longer have exclusive dealerships and the public will not be obliged to get their car serviced where they bought it. "Car prices will come down and competition will increase," Mr De Rossa said. "Agencies are encouraging people to buy now, saying prices will go up in autumn but the opposite will happen."
He said car manufacturers were using vehicle registration tax as a reason for high prices and said the EU believed "the fundamental problem is price-fixing".
"Manufacturers certainly are involved in car price-fixing, so I would urge people to wait until after autumn to buy a new car," he added.
The European Commission launched a report last autumn proposing a move from car tax to environmental taxes which would lower car prices, but "Minister McCreevy has indicated his opposition to this", Mr De Rossa said.
The Society of Motor Industries in Ireland was not available for comment.