EU study shows wide car price differentials

FANCY a new car? Well, if you do, according to a new EU survey, it may well be worth shopping around in other member states for better value, even if you then have to pay full Irish tax on the car of your choice to bring it home.

Pre tax price differentials of up to one third are reported on the same model car in different states by the European Commission in a survey of 75 of the most popular makes. The pretax price of 20 of the cars in Ireland was at least 15 per cent - more than the cheapest of the same models in other countries.

The Mitsubishi Pajero is a full 36 per cent dearer in Dublin than in Paris, while the Volkswagen Polo is 30 per cent more expensive here than in Lisbon. On the other hand, all Fiat models appear to be cheapest in Ireland.

The survey of manufacturers recommended retail prices by the Commission reports that 23 of the best selling models were cheapest in the Netherlands, followed by Portugal, while Germany and France remained the most expensive for 30 of the models examined. Ireland was most expensive for eight cars, and cheapest for the same number.

Price differences between countries for the same models exceeded 20 per cent for 40 of the cars - the worst offenders being the Fiat group, Ford, Opel, Citroen, Volkswagen, Nissan and Mitsubishi. But the Commission notes that since 1995 there has been a trend towards limiting differentials.

The report notes a clear relationship - between pre tax car prices and taxation policy, with manufacturers willing to take lower prices where governments, like the Irish, have high tax policies.

But shopping around is not always easy. The Commission notes that while the practice is clearly having an effect on prices, in four countries, Germany, Belgium, Spain and the Netherlands, customers from other member states found difficulties obtaining cars from salesrooms.

Consumer complaints have led to recent raids by Commission inspectors on two major manufacturers - Mercedes-Benz and Opel - in search of evidence that the companies may be discouraging agents from selling to non nationals in breach of single market rules.