Staff and agencies 

Are we being taken for a ride?

Britain remains the most expensive place in the EU to buy cars, a new survey showed today. Forty of the models investigated by the European commission at the beginning of May cost significantly more in the UK than elsewhere.
  
  


Britain remains the most expensive place in the EU to buy cars, a new survey showed today.

Forty of the models investigated by the European commission at the beginning of May cost significantly more in the UK than elsewhere. But heading to Europe to buy your car in order to save money can backfire: British motorists shopping around on the continent continue to face long delivery times and hefty supplements, including hundreds of pounds for right-hand drive cars.

The arrival of the euro in 12 EU countries has not narrowed the price gap, despite greater price transparency, says the commission. Within the euro-zone the most expensive cars - in Germany and Austria - are up to 42% more expensive before tax than the same model in another single currency member state.

Add non-euroland Britain, Sweden and Denmark, and the pre-tax price gap widens further - with a Fiat 600 currently 63% dearer in Britain than in Spain, a Nissan Micra 38.8% dearer than in Finland, and a Ford Focus 31.8% dearer than in Finland.

The latest figures, focusing on the 82 best-selling cars from 26 manufacturers, come just days after the commission announced a huge shake-up in the way cars are sold throughout Europe.

Competition commissioner Mario Monti announced an end to exclusive brand networks, with carmakers forced to allow their dealers to operate multi-franchise showrooms.

Opening up competition, he said, would mean cheaper prices - after years in which carmakers had promised and failed to honour a commitment to ensure that the price difference in national EU markets for exactly the same car was kept within 12%.

Consumer groups have long claimed that manufacturers have used their special dealership and distribution arrangements to prop up prices - and then make life difficult for UK buyers shopping around for bargains on the continent.

Today's report said that the commission will continue to investigate "restrictive agreements and practices by car manufacturers that directly or indirectly impede EU citizens from buying a car in another member state."

It goes on: "As regards the UK, it should be noted that this market continues to be the most expensive for more than half of the models examined. Since UK prices are still much higher than elsewhere, many British consumers continue to try to buy cars from continental dealers.

"The commission often receives complaints from British consumers who encounter obstacles when purchasing a car in another member state, in particular concerning long delivery times or high right-hand drive supplements."

UK car prices have to include extra costs for UK specification, including right-hand drive, as well as being affected by the high value of the pound, the commission acknowledges. All these aspects have to be considered when looking at the reasons behind high price differentials for new cars.

The following models were most expensive in Britain based on pre-tax prices:

Fiat 600 (63% more expensive in the UK than in the cheapest EU market)
Fiat Marea (58% more expensive)
Nissan Almera (48.2%)
Mazda 626 (43%)
Mazda 323 (39.6%)

 

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