European car prices converge

2 March 2004

BRUSSELS – Car buyers seeking the best value for their money should indulge in a bit of cross-border shopping across the European Union, the European Commission said Tuesday.

A report by the Commission said prices for most cars were highest in Germany and Austria but cheaper deals could be found in Denmark, Greece and Finland.

Car prices within the European Union were converging, the Commission said.

But the EU executive admitted that consumers could “make significant savings” by buying their cars in countries like Denmark, Greece and Finland were pre-tax car prices were the lowest in Europe.

The Commission insisted that price differences within the EU were smaller than in past years, saying the average standard deviation of prices between national markets fell from 7 percent in 2002 to 5.6 percent last year.

“Nonetheless, price differentials between the cheapest and the most expensive member state remain substantial in some cases,” it admitted.

The widest price difference recorded in the report concerned the Volkswagen Passat. The Commission said German consumers were being forced to pay 39 percent more for the model than if they bought the car in Greece.

DPA
Subject: German news