Striking variations in the price of new cars persist across the EU, according to a survey published yesterday by the European Commission. It shows that the price of the same car varies by as much as 39 per cent between the cheapest and most expensive countries.
Comparing pre-tax prices, Ireland is the most expensive country for the Nissan Micra, the Renault Clio, Toyota Corolla, Saab 9-3, Subaru Legacy and the Land Rover. However it is the cheapest country for the Volkswagen Polo, Citroen Xsara Picasso, Citroen C5, Audi A8 and Citroen C8.
Presenting the latest Commission's twice-yearly survey, Mr Mario Monti, the European Commissioner for Competition, said there had been some convergence in prices, but consumers could still make significant savings by buying across national borders.
"European consumers can still make good deals when buying abroad, but I see clearly signs of more integrated markets, especially in the euro area."
Mr Proinsias De Rossa, Labour MEP, said the survey confirmed that car manufacturers were still "ripping off Irish car buyers".
"The pre-tax prices recommended by them for Ireland are on average 8 per cent higher than the lowest pre-tax prices they recommend for other EU countries."
The Commission said that for Irish and British consumers buying a car in another EU state, the supplement for a right-hand drive car also varied significantly. It was less than 3 per cent for Land Rover, Rover and Volvo cars, but 9 per cent or more for cars from Volkswagen.
The Commission concluded that Germany and Austria were still the most expensive EU markets for cars. Germany has the highest euro zone price for 38 of the 91 models in the survey. Within the euro zone, Greece and Finland have the lowest prices. Denmark has the lowest EU pre-tax prices because the domestic car tax is so high.
The report is based on car prices on November 1st, 2003. It is the first report from the Commission since new EU law governing car sales came into force. Mr Monti said the full effect of the new law, which gave car dealers some exemptions from EU competition rules but was supposed to introduce greater competition, would only apply from October 1st next year. After that date car-dealers will have greater freedom to set up cross-border sales networks.
